Stock market,Share Market
The Indian stock market went down over 2 percent intraday on November 26 on weak global cues. At 10:57am, the BSE Sensex crashed 1,429.30 points or 2.43 percent to 57,365.79, and the Nifty tumbled 429.60 points or 2.45 percent to 17,106.70.
Investors are spooked by the news of a new coronavirus variant detected in South Africa. The World Health Organization (WHO) has scheduled a special meeting on November 26 to discuss the matter, according to officials.
Also read: Reasons why the market has tumbled today
Identified as B.1.1.529, the variant is a cause for concern because of its high number of mutations and rapid spread among young people in Gauteng, the country’s most populous province, Health Minister Joe Phaahla announced on November 25.
Markets across Asia tanked on Friday in a ripple effect. “The Indian benchmarks have a gap down opening today tracking weak Asian markets. Traders will be concerned as WHO flags new COVID-19 strain,” said Likhita Chepa, Senior Research Analyst at Capitalvia Global Research.
Foreign portfolio investors (FPIs) remained net sellers for Rs 2,300.65 crore in the Indian markets. “There will be some caution as an ICRA report said that the Reserve Bank of India’s revision of bad loan recognition and upgradation norms could bring a sharp spike in non-performing assets of non-banking finance companies (NBFCs) in the country,” Chepa said.
Catch all the market action on our live blog
Some support may come as investments in Indian capital through participatory notes (P-notes) rose to Rs 1.02 lakh crore till October end. Research suggests that 17,200 may act as an important support level in the market. “If the market sustained above the support of 17,200, then we can expect it to trade in the range of 17,200-17,500,” she added.
The sectors that got hammered the most included the realty index, which crashed over 5 percent, followed by auto, metals, banking and financials.
The top realty losers included Phoenix Mills and DLF which are down over 7 percent each, followed by Oberoi Realty, Indiabulls Real Estate and Prestige Estates.
Among the auto names, Tata Motors shed over 5 percent, followed by Ashok Leyland, Maruti Suzuki and Mahindra & Mahindra, which are down 3-4 percent each.
Bajaj Finance and Bajaj Finserv are the top financial drags, down 4 percent each, while HDFC, ICICI Bank, State Bank of India and HDFC Bank slipped 2-3 percent each.
Among the large-cap and mid-cap names, the stocks which have hit new 52-week low included Hero MotoCorp, Bombay Burmah and CarTrade Tech, which shed 2 percent each, followed by Essel Propack, JM Financial and JohnsonCtrls Hitachi, which are also trading at new 1-year low.
“If we sustain the gap and break the lows, we can slide further to 17,100, which is the next level of support. However, it is well established now that the current trend is down and all up moves are opportunities to short the Nifty. The upside is capped by multiple levels of resistance, the most important one being 17,600,” Manish Hathiramani, proprietary index trader and technical analyst at Deen Dayal Investments, said.Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.