Weak global cues push Sensex down 427 pts; Nifty ends below 17,300

Mumbai, Jan 21 Benchmark indices ended the week on a bearish note, closing lower for the fourth consecutive session on Friday. 

Market opened on a weak note after three consecutive sessions of losses, following negative global cues, amid sell-off in global markets. Indices extended losses through the day, witnessing selling pressure across multiple counters.

The BSE Sensex closed at 59,037.18, down 427.44 points or 0.72 per cent. It recorded an intraday high of 59,329.63 and a low of 58,620.93. The Nifty 50 closed at 17,617.15, down 139.85 points or 0.79 per cent. It recorded an intraday high of 17,707.60 and a low of 17,485.85.

Over 2,300 stocks decline

The market breadth turned in favour of the decliners with 2,362 stocks declining on the BSE as against 1,016 that advanced while 88 remained unchanged. Furthermore, 371 stocks hit the lower circuit as compared to the 322 stocks that were locked in the upper circuit. Besides, 293 stocks touched a 52-week high level and 20 touched a 52-week low.

The volatility index jumped 6.16 per cent to 18.89, signaling caution among investors. 

FII selling, rising treasury yields and geopolitical tensions (Russia-Ukraine) have negatively impacted market sentiments this week. 

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd said, “Indian equity markets corrected this week in line with the global market sell-off. The rise in US bond yields and the expected tightening of monetary policy by Central Banks are weighing on investor sentiments.”

“The 10 year US treasury yield moved higher this week, hitting 2 year high. BSE 30 and NSE 50 index corrected by ~3 per cent this week. In line with broader markets, most sectors saw profit booking,” said Chouhan.

“IT sector performed poorly this week with a negative return of ~6 per cent. Crude oil prices continue to march forward with Brent crude inching closer towards the $90 /barrel levels. FIIs turned out to be a net sellers in the January month till date in India. Inflationary pressure, monetary policy tightening, rising bond yields, higher crude oil prices are some key challenges for the global markets. In addition, the domestic markets would track the Q3FY22 results, management commentary, and Union Budget,” Chouhan added.

Hemant Kanawala, Head – Equity, Kotak Mahindra Life Insurance Co. Ltd said, “The markets will be focused on upcoming Union Budget and ongoing results season. Markets would be keenly watching the fiscal deficit number so as to gauge the extent of fiscal consolidation.”

“While start of earnings season has been robust, overall performance will determine the near term direction of equity markets,” Kanawala further added.

Bajaj Auto, Hindustan Unilever, Maruti, Hero MotoCorp and HDFC Bank were the top gainers on the Nifty 50 while Bajaj Finserv, Tech Mahindra, Shree Cement, Coal India and Divi’s Lab were the top laggards. 

FMCG in focus

On the sectoral front, all indices except Nifty FMCG closed in the red.

Nifty FMCG closed 0.36 per cent higher. 

Meanwhile, Nifty PSU Bank was down over 3 per cent at closing while Nifty Consumer Durables was down nearly 3 per cent.Nifty Realty was down over 2 per cent.

Nifty IT, Nifty Metal and Nifty Pharma were down nearly 2 per cent each. Nifty Healthcare Index and Nifty Oil & Gas were down over 1 per cent each. 

Broader indices

Broader market continued to remain under pressure. 

Nifty Midcap 50 was down 2.52 per cent while Nifty Smallcap 50 was down 2.47 per cent at closing. The S&P BSE Midcap was down 2.01 per cent while the S&P BSE Smallcap was down 1.96 per cent.

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