A sharp across-the-board sell-off wreaked havoc in the Indian equity market, dragging the benchmark Sensex down by 2,149 points in intraday trade, its worst performance since May 2020. Rising bond yields, geopolitical tensions and concerns over inflation weighed on the market.
At close, the Sensex was 1,939 points, or 3.80 percent, down at 49,099.99, while the Nifty was at 14,529, down 568 points or 3.76 percent.
"Domestic markets tumbled in line with global trend triggered by a sharp rise in bond yields. Increasing geopolitical tension between the US and Syria aggravated the selling. Q3 GDP data which is to be released today also added volatility in the Indian market," said Vinod Nair, Head of Research at Geojit Financial Services.
The market capitalisation of BSE-listed firms fell to Rs 206.18 lakh crore on February 26 from Rs 200.81 lakh crore in the previous session, making investors poorer by Rs 5.4 lakh crore in a single day. For the week, the Sensex and the Nifty fell about 3 percent each.
Mid and small-caps outperformed their larger peers. The BSE midcap and smallcap indices fell 1.75 percent and 0.74 percent, respectively.
"Although negative, mid and small-caps outperformed their larger indices showing investor confidence. The market will gain momentum as the global market is expected to stabilise supported by accommodative monetary policy and a growing economy," Nair said.
Sectors and stocks
All sectoral indices ended in the red on NSE, with the Nifty financial services (down 4.93 percent) and Nifty bank (down 4.78 percent) and Nifty private bank (down 4.67 percent) ending as the top losers.
A long build-up was seen in stocks such as Trent, Nalco, SAIL and Alkem, while a short build-up was seen in stocks such as Shriram Transport Finance, RBL Bank and Mahindra & Mahindra.
More than 200 stocks, including GNFC, HUDCO, BHEL, BEML, Eveready Industries India and Deepak Fertilisers and Petrochemicals, hit their 52-week highs on BSE.
The Nifty formed a strong bearish candle on the daily scale, indicating that the bears were in control of the market through the day.
Chandan Taparia, Vice President and Derivatives Analyst at Motilal Oswal Financial Services, said the Nifty formed a Bearish Island Reversal Gap pattern on the daily timeframe, with gap-up and gap down near 15,008-15,065 zones in the last two sessions.
"Now till it remains below 14,650 zones, weakness could be seen towards 14,400-14,300 zone, while on the upside, hurdles are seen at 14,750 and 14,850 zones," Taparia said.
The recent upside bounce was negated sharply on February 26 and the short-term trend has turned down, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
A further slide towards the next crucial supports of around 14,350-14,300 can be expected in the coming few sessions before any upside bounce. On the upside, stiff resistance is likely at 14,640, Shetti 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.