After hitting record highs in the previous session, benchmark indices fell for the second day in a row on January 22 on the back of selling seen in the metal and banking names. At close, the Sensex was down 746.22 points or 1.50% to 48,878.54, and the Nifty was down 218.50 points or 1.50% to 14,371.90.
"Markets traded weak on Friday with profit-booking in metals & financials. The key highlight of the day, however, was the strong appetite for auto stocks which coupled with the IT biggies kept the optimism alive on a weak day as the street awaits the earnings of RIL," said S Ranganathan, Head of Research at LKP Securities.
Among sectors, Nifty Bank, metal and PSU bank indices shed 3 percent each, while energy, pharma and infra sectors fell 1 percent each. On the other hand, the auto index added over 1 percent.
Broader markets outperformed the main indices with BSE Midcap and Smallcap indices falling 1 percent each.
Axis Bank, Asian Paints, JSW Steel, Hindalco Industries and SBI were among top losers on the Nifty, while gainers included Bajaj Auto, Hero MotoCorp, Eicher Motors, HUL and TCS.
Stocks & sectors
Except for Auto and IT, all other BSE sectoral indices ended in the red. The BSE metal, bank and realty indices fell 3 percent each. Oil & gas, power and healthcare indices shed over 1 percent each, however, BSE auto index added 1.5 percent.
A volume spike of more than 100 percent was seen in Biocon, Adani Ports and TVS Motor.
Long buildup was seen in Bajaj Auto, TCS and UltraTech Cements, while short buildup was seen in GMR Infra, L&T and Biocon.
Over 200 stocks including JK Tyre, Indosolar and GTL Infrastructure hit a fresh 52-week high on the BSE.
Nifty formed a Bearish candle on the daily scale and a Doji with long upper shadow on the weekly scale which indicates that selling pressure is seen at higher zones.
The index may continued to remain highly volatile ahead of Monthly expiry and Union Budget 2021.
"Till the time Nifty remains below 14500 zones, weakness could pull it towards 14,250 levels while on the upside key hurdle exists at 14,600 and 14,750 levels," said Chandan Taparia of Motilal Oswal Financial Services.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.