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Taking Stock: Cross-border tensions spoil the party; Sensex closes below 39K

Sectorally, selling pressure was seen in realty, healthcare, utilities, power, and capital goods space

August 31, 2020 / 07:20 PM IST

Indian market snapped the 6-day winning streak and pushed benchmark indices below crucial support levels on Monday. The S&P BSE Sensex broke below 39,000 while Nifty50 failed to hold on to 11400 levels.

Let’s look at the final tally on D-Street – the S&P BSE Sensex fell 839 points to 38,628 while the Nifty50 ended 260 points lower at 11,387.

Fresh LAC tensions & new margin implementation weigh on market sentiment. The recent uncertainty on the border front gave investors the reason to book profits. Sensex, Nifty & Midcap index saw their biggest one-day fall in last 3 months.

“Indian benchmark indices had a volatile outing today and finally closed with losses of around 2.6% in a news-heavy day. Although markets opened with gains, it quickly succumbed to a bout of selling, following profit booking after the recent run-up,” Vinod Nair, Head of Research at Geojit Financial Services told Moneycontrol.

Close

“The losses extended, following reports of increased tensions along the border with China. With increased geopolitical tensions, markets also traded uncertainty and this could impact the market behaviour in the coming days. Investors advised to remain cautious,” he said.

Sectorally, selling pressure was seen in realty, healthcare, utilities, power, and capital goods space. On the broader market front – the S&P BSE Mid-cap index was down 3.7 percent while the S&P BSE Small-cap index fell 4.3 percent.

Top Nifty gainers include names like Tata Motors, TCS, and ONGC.

Top Nifty losers include names like Eicher Motors, SBI, and Sun Pharma.

Stocks & Sectors:

Sectorally, the S&P BSE Realty index plunged 4.70 percent, followed by the S&P BSE Healthcare index which was down 4.6 percent, and the S&P BSE Utilities index plunged 3.8 percent.

Volume spike of more than 100% was seen in Bharti Airtel, Wipro, Bosch, and ONGC.

Short Buildup was seen in stocks like Bharti Airtel, Escorts, and Bosch.

More than 100 stocks on the BSE hit a fresh 52-week high that include names like Kwality Pharma, AstraZeneca, L&T Infotech, and MindTree.

Stocks in the News:

Reliance Industries slips while Future Group stocks gain after the retail biz deal

ONGC, TCS, Tata Motors & HDFC Bank gain in a weak trading session

Shares of the Adani Group companies ended in the red as Adani Group is set to gain control of Mumbai and Navi Mumbai airports.  Adani Ports was down almost 2 percent while that of Adani Gas tumbled 9 percent.

Adani Power shares were down 5 percent while Adani Green shed 2 percent. Adani Transmission fell over 8 percent and Adani Enterprises shed over 3 percent.

CG Power share price jumped 5 percent after the company's lenders approved a takeover bid of the company by Murugappa Group-led Tube Investments of India, according to media reports.

SRF stock price was down over 4 percent at the close. The Board of Directors of SRF at its meeting held on August 31, 2020, has considered and approved the raising of funds for an aggregate amount not exceeding Rs 750 crore through the issue of equity shares by way of qualified institutions placement.

Technical View:

Nifty index opened positive but failed to surpass 11800 and fell down sharply towards 11300 zones.

Nifty formed a big bearish candle and wiped out the entire gains of the last six trading sessions by forming a Bearish Engulfing pattern.

It negated the formation of higher highs - higher lows of last six trading sessions with decline in all the sectorial indices along with a very poor advance - decline ratio.

“Nifty has also broken an immediate support trend line by connecting all the recent swing lows which doesn’t bode well for the bulls for short term point of view,” Chandan Taparia, Motilal Oswal Financial Services Limited said.

“Now, till it remains below 11550 zones, more profit booking decline could be seen towards 11200 and 11111 zones while on the upside key hurdles are seen at 11650 and 11750 zones,” he said.

Disclaimer: The views and investment tips expressed by 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.
Kshitij Anand is the Editor Markets at Moneycontrol.
first published: Aug 31, 2020 04:43 pm

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