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Benchmark indices were down over one per cent during the afternoon on Monday, as bears gain momentum amid global sell-off. Market, after opening on a negative note, extended losses further, dragged by losses in heavyweights such as the HDFC twins.
At 1 pm, the BSE Sensex was at 52,543.79, down 596.27 points or 1.12 per cent. It hit an intraday high of 52,821.17 and a low of 52,506.40. The Nifty 50 was trading at 15,757.70, down 165.70 points or 1.04 per cent. It hit an intraday high of 15,836.90 and a low of 15,735.95.
BPCL, Divi’s Labs, NTPC, Nestle India and Tata Consumer were the top gainers on the Nifty 50 while HDFC Bank, IndusInd Bank, HDFC, Axis Bank and Kotak Bank were the top laggards.
According to Gaurav Garg, Head of Research, CapitalVia Global Research Ltd, indices were trading lower during the morning session as investors worried about the impact of rising inflation and Covid-19 outbreaks on the economy's prospects.
“Traders were particularly wary after Niti Aayog CEO Amitabh Kant expressed concern about rising food inflation as a result of increasing costs for oilseeds and edible oils,” said Garg.
On Friday, Wall Street closed lower, pulled down by drops in Amazon, Apple, and other heavyweight technology stocks, as investors fretted about an increase in coronavirus cases linked to the highly contagious Delta variant. Asian markets were also concerned over the rising inflation in the region and sentiment remained negative as Wall Street fell before closing on Friday, as per Garg.
HDFC Bank down 3% post Q1 FY 22 results
HDFC Bank suffered losses post its Q1 FY 2022 results amid profit-booking. HDFC Bank was down 3.47 per cent while HDFC was down 2.53 per cent.
The private sector lender reported a 16.1 per cent increase in its standalone net profit for the quarter ended June 30, 2021 at ₹ 7,729.6 crore.
Its net profit was ₹ 6,658.62 crore in the first quarter of last fiscal.
Noting that the country was hit by a second Covid wave in the first quarter of the fiscal, the bank said business activities remained curtailed for almost two-thirds of the quarter.
It also led to a decrease in the efficiency in collection efforts, it said.
Financials under pressure
On the sectoral front, as financials lagged, only pharma and realty managed to remain resilient.
Nifty Bank was down 2.21 per cent while Nifty Financial Services was down 2.10 per cent. Nifty Private Bank was down 2.18 per cent while Nifty PSU Bank was down 1.17 per cent. IT and metals also dragged. Nifty IT was down 0.53 per cent while Nifty Metal was down 0.74 per cent.
Meanwhile, Nifty Pharma was trading flat, up 0.04 per cent and Nifty Realty was up 0.10 per cent.
Broader indices
Broader stocks also faced selling pressure. Nifty Midcap 50 was down 0.96 per cent while Nifty Smallcap 50 was down 0.18 per cent. The S&P BSE Midcap was down 0.55 per cent while the S&P BSE Smallcap was down 0.20 per cent.The volatility index rose 8.69 per cent to 12.72.
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