Closing Bell: Sensex plunges 695 points, Nifty ends below 12,900; investors lose over 2 lakh crore in a day
In sync with the benchmarks, BSE Midcap and Smallcap indices too suffered strong losses. Barring Oil & Gas, all sectoral indices ended in the red on BSE, with Realty, Telecom, Bankex among the top losers.
Markets drifted lower and lost over one and a half percent, taking a breather after the recent surge. Participants were in the profit-taking mood from the beginning, citing overbought markets and a cautious approach ahead of derivatives expiry.
Consequently, the Nifty index ended near day’s low at 12,858 levels, down by 1.5 percent. In line with the benchmark, the broader indices too witnessed a decline wherein Midcap lost 1.8 percent and Smallcap ended with a cut of 1.1 percent. Among the sectoral indices, Banks, Auto and Healthcare were the top losers.
It’s normal to see an intermediate dip in a trend and we may see further profit-taking ahead.
Besides, volatility is also likely to remain high due to scheduled derivatives expiry. Nifty has the next crucial support at 12,700. Considering the scenario, we suggest limiting naked leveraged trades and preferring hedged positions.
November 25, 2020 / 04:09 PM IST
S Hariharan, Head - Sales Trading, Emkay Global Financial Services
Markets are currently witnessing a macro shift of assets into equities globally, and furthermore, EM equities over DM, as prospects of a macro recovery in APAC and potential growth upsides driven by vaccine availability have taken root.
The second wave spread of COVID-19 in EU & US is leading to low expectations of economic activity in the last quarter of CY20 among DMs.
Since Nifty is already at lifetime highs, we expect market strength to become more broad-based now, with under-owned sectors like metals and PSUs catching up on performance, and mid-caps outperforming large-caps in the short-term.
A broader opening up of the economy will be set-off against continued lower levels of formal employment and hence, consumer staples can be expected to post muted levels of volume growth, while financials also appear fairly weighted at current levels.
OMCs and plays for a revival in the CV demand cycle would benefit in the coming quarter. As of now, the market is pricing in a robust recovery, while discounting a smooth roll-out of the government's vaccination drive - hence, the risks of disappointment on both these fronts pose the major risk of stalling market momentum.
November 25, 2020 / 03:55 PM IST
Vinod Nair, Head of Research at Geojit Financial services
The market rally which was led by developments on vaccine and FII inflows came to a halt today due to profit-booking across sectors in the second half of the trading session.
We can expect profit-booking to continue in our domestic market, in the short-term, as the liquidity-driven rally can take a pause having reached an all-time high on a monthly basis.
FII inflow was triggered by the overwhelming result of the US election unleashing high amounts of funds that were put on-hold. FIIs can take a breather and check for the next phase of policies in the US and Europe for 2021.
November 25, 2020 / 03:51 PM IST
Over 2 lakh crore gone in a day: The strong selloff significantly eroded the market-capitalisation (m-cap) of BSE-listed firms. Investors lost about 2.2 lakh crore in a single day as the cumulative m-cap of BSE-listed firms dropped to Rs 172.6 lakh crore on November 25 from 174.82 lakh crore on November 24.
November 25, 2020 / 03:40 PM IST
Market closing: Heavy sell-off engulfed the Indian market as the benchmarks Sensex and Nifty ended with deep cuts on November 25.
At close, Sensex was 694.92 points, or 1.56 percent, down at 43,828.10 while Nifty was at 12,858.40, down 196.75 points or 1.51 percent.
BSE Midcap index closed with a loss of 1.76 percent and Smallcap index settled 1.13 percent lower.
Among the sectoral indices, Realty, Bankex, Telecom lost 2 percent each. BSE Oil & Gas ended 0.08 percent up, thanks to a stellar show by ONGC which rose over 6 percent.
November 25, 2020 / 03:14 PM IST
Market update: The Indian market is witnessing profit-taking ahead of the expiry of the November F&O series. Besides, rising cases of COVID-19 in the country remain an overhang.
November 25, 2020 / 03:02 PM IST
Market update: Market is witnessing profit-booking across sectors despite broadly positive global cues. However, the Nifty PSU Bank index rose 3 percent, bucking the trend. Shares of Indian Overseas Bank, Bank of Baroda, Canara Bank logged strong gains.
November 25, 2020 / 02:51 PM IST
Stocks above their 200 DMA
November 25, 2020 / 02:47 PM IST
Stocks below their 200 DMA
November 25, 2020 / 02:27 PM IST
Tapan Patel- Senior Analyst (Commodities), HDFC Securities: Gold prices traded higher with COMEX spot gold prices recovered to $1812 on November 25. Gold December future contract at MCX were trading up to Rs 48,760 per 10 grams in line with firm global gold prices. Gold prices pared some previous loses as investors weighed the vaccine progress and stimulus hopes as President elect Joe Biden started White House transition. We expect gold prices to trade sideways to up with COMEX gold resistance at $1820 and support at $1800. MCX Gold December support lies at Rs 48,400 with resistance at Rs 49,200.