The market remained under selling pressure for the second consecutive session on April 25 with the BSE Sensex falling more than 700 points with its global peers caught in a bear trap.
The slump was worse as a rising COVID risk gripped China and the Wall Street showed a sharp downtick last Friday due to increasing hawkish messages from the Federal Reserve.
Still, 46 stocks not only ducked the trend but also hit record highs on Monday.
The BSE Sensex fell 717 points or 1.25 percent to 56,479, and the Nifty50 plunged 245 points or 1.4 percent to 16,927, while the broader markets also reeled under pressure with the BSE Midcap and Smallcap indices declined around 2 percent each at 14:53 hours IST.
Globally, among Asian counterparts, China's Shanghai Composite is the largest loser with 5 percent correction amid rising COVID fears in the country, raising earnings and growth concerns. Hong Kong's Hang Seng fell 3.7 percent, while Japan's Nikkei corrected 1.9 percent and South Korea's Kospi dropped 1.8 percent.
European markets like France's CAC and Britain's FTSE declined 2 percent each, while Germany's DAX was down 1.4 percent at the time of writing this article. Oil prices also drifted lower with the international benchmark Brent crude futures falling more than 4 percent to $102 a barrel on demand concerns and the ongoing Ukraine war. Consistent selling by FIIs also weighed down the market as FIIs did not sell more than Rs 18,000 crore worth of shares last week.
"Globally, markets turned weak with a big cut in the mother market US last Friday. Markets are worried about the increasing hawkish messages from the Fed which indicate higher-than-expected rate hikes by the Fed this year. There are concerns that aggressive monetary tightening might even push the US economy into a recession in 2023. These fears are impacting risky assets," VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.
The volatility also moved above 20 levels, which is also supporting negative sentiment. India VIX jumped more than 14 percent to 21 mark.
The market breadth, too, was in favour of bears as two shares declined for every one share advancing on the BSE, but individual stocks seem to be in action as 165 stocks hit 52-week highs despite correction for second day in the market and even number of stocks at upper circuit were higher than stocks at lower circuit. However, 23 stocks were at 52-week lows.
Of total 165 stocks that hit 52-week highs, top 46 were at record highs, including Adani Power and Sunflag Iron & Steel which were only stocks from 'A' group. Adani Power, in fact, locked in the 5 percent upper circuit at Rs 272.15 on the BSE and in last one month surged 120 percent may be due to rising focus on renewable energy, while Sunflag on Monday fell more than a percent after hitting record highs but overall in current month, it doubled investors' wealth.
In the 'B' group, Adani Wilmar remained on buyers' radar as like Adani Power, it was also locked in 5 percent upper circuit at Rs 764 and surged 94 percent in last one month given the strong market position in kitchen commodities & distribution network with integrated manufacturing facilities. Rising prices of edible oil due to supply crunch in palm oil and sunflower also aided sentiment.
Genus Paper, Gokul Agro Resources, Hardwyn India, Madras Fertilizers, Radhika Jeweltech, Share India Securities, and Shankar Lal Rampal Dye-chem also hit new highs today.
About 306 stocks hit upper circuit on first day of the week, against 269 stocks at lower circuit.
In the 'B' Group, De Nora India, Shree Rama Multi-Tech, Bhakti Gems and Jewellery, Raj Oil Mills, and Motor General Finance were locked in 10 percent upper circuit each.
Further, Axiscades Technologies, Hubtown, Transwarranty Finance, Hardwyn India, Karnavati Finance, Sharika Enterprises, Kaushalya Infrastructure, Kavveri Telecom, Kohinoor Foods, 7NR Retail, Consolidated Construction Consortium, Veeram Securities, Zenith Steel Pipes, and Impex Ferro Tech were locked in 5 percent upper circuit each.Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.