Tracking sell-off in global markets, benchmark indices fell below their crucial support levels on Monday. The S&P BSE Sensex plunged more than 800 points to record its steepest decline since Budget Day when the index plunged 2.4 percent.
Let’s look at the final tally on D-Street – the S&P BSE Sensex closed 806 points lower at 40,363 while the Nifty50 ended with losses of 251 points to close at 11,829 on Monday.
Investors lost over Rs 3 lakh cr in a single trading session. The average market capitalisation of BSE-listed companies fell from Rs 158.50 lakh cr recorded on 20 February to Rs 155.33 lakh cr on February 24.
Sectorally, selling pressure was seen in metals due to global growth worries, followed by auto, telecom, energy, as well as consumer durable indices.
Broader markets underperformed as the S&P BSE Midcap index was down 1.6 percent, while the S&P BSE Smallcap index closed 1.58 percent down.
The volatility is likely to continue in the near term and would be largely guided by global factors. Rising fears related to Coronavirus which is now spreading to other countries capped the risk-on sentiment.
Demand for safe-haven assets spiked as Gold hit a fresh record high above Rs 43000 per 10 gm for the first time. The Trump-Modi meet is not providing clues to the market regarding trade deal but the market is hoping for some hint in the future, suggest experts.
“We expect the markets to be choppy in the near term as global sentiments continue to remain muted. In addition, F&O expiry could also induce some volatility during the week,” Ajit Mishra, VP - Research, Religare Broking Ltd told Moneycontrol.
“On an optimistic note, any positive outcome from the US president’s India visit in terms of strategic partnership/trade deal could possibly cheer the Indian markets,” he said.
All Nifty constituents closed in the red. Top Nifty losers include names like JSW Steel (down 8%), followed by Vedanta which was down 6.4 percent, and Tata Steel fell 6.3 percent.
Stocks & Sectors:
Sectorally, the S&P BSE Metal index plunged nearly 6%, followed by the Auto index that fell 3.4 percent, and the Telecom index closed lower by 3.33 percent.
More than 170 stocks on the BSE hit fresh 52-week low that include names like Gillette India, Hero MotoCorp, L&T, BASF India, IFB Industries, and Bandhan Bank.
Volume Spike of 200-400% was seen in stocks like Exide Industries, L&T, Nestle India, GMR Infrastructure, Adani Ports, and Bosch.
Short Buildup was seen in stocks like Jubilant FoodWorks, Maruti Suzuki, Nestle India, Adani Enterprises, L&T and HDFC Ltd.
Stocks in News
Metal stocks melt: Metals stocks took a beating on February 24, correcting 1-9 percent as the number of infected from China's coronavirus continued to rise spreading to other countries as well. JSPL, Vedanta, JSW Steel, SAIL, Hindalco, Tata Steel, Hindustan Copper, NALCO, MOIL, NMDC, Coal India, Welspun Corp and APL Apollo Tubes ended 1-9 percent in the red.
Unichem Labs: Unichem Laboratories share price rallied over 8 percent on February 24 after its Roha unit did not get any observation from the US health regulator.
Max Financial: Shares of Max Financial Services jumped almost 5 percent while those of Axis Bank declined over 2 percent on February 24. Both the stocks came on investors' radar after they entered into a confidentiality and exclusivity arrangement to explore a long-term strategic partnership.
Aurobindo Pharma: Aurobindo Pharma share price fell 16 percent as the US health regulator withdrew the 90-day voluntary action indicated (VAI) status given to Unit 4 of the company.
Lupin: Lupin share price fell 3 percent on February 24 after the US health regulator issued two observations on the company's Pithampur unit in Madhya Pradesh.
The Nifty50 formed a bearish candle and slipped below its 5-Days EMA, and 100-DMA on daily charts
Nifty closed below its 100-Days EMA placed at 11938 but also registered a breakdown below the neckline of its Head & Shoulders formation, formed on a daily line chart
In the next trading session if Nifty fails to hold the psychological support placed around 11800 levels then this corrective shall initially get extended into the bullish gap zone of 11783 – 749 levels registered on 4 th day of February, suggest experts.
For time being upsides shall remain capped around 12000 levels and hence traders are advised to remain neutral even on the short side as Nifty approached near to its support
Three levels: 11813-11800, 12012, 12200