The Indian market ended lower on March 24 for the second consecutive session amid volatility and widespread selling after the Finance Bill 2023 was passed by the Lok Sabha with some amendments which hit investor sentiment.
At close, the Sensex was down 398.18 points, or 0.69 percent, at 57,527.10, and the Nifty was down 131.90 points, or 0.77 percent, at 16,945.
The market started on a muted note on mixed global cues and swung between marginal gains and losses but last-hour selling dragged the indices to close near the day’s low.
For the week, the Sensex fell 0.8 percent and the Nifty 0.9 percent.
As per the amended Finance Bill, debt Mutual Funds (MFs) will now attract short-term capital gains if they invest less than 35 percent of their assets in equities. The amended bill also hiked by up to 25 percent the securities transaction tax (STT) on the sale of F&O contracts.
Also Read: Govt hikes securities transaction tax on options by 25%
Stocks and sectors
Bajaj Finserv, Bajaj Finance, Adani Enterprises, Tata Steel and Hindalco Industries were among the biggest Nifty losers. The gainers were Cipla, Kotak Mahindra Bank, Dr Reddy's Laboratories, Infosys and Apollo Hospitals.
All sectoral indices ended in the red. PSU bank, metal and realty were down 2 percent each, while capital goods, oil & gas down a percent each.
The BSE midcap and smallcap indices shed over a percent each.
More than 300 stocks touched their 52-week lows on the BSE. These included Wockhardt, TV Today Network, SpiceJet, Sobha, Aban Offshore, Piramal Enterprises, Mphasis, Madhucon Projects, Jet Airways, Vodafone Idea, Aarti Industries, Jindal Poly Films, Graphite India, Gati, Godrej Properties, DCM Shriram and Devyani International.
Among individual stocks, a volume spike of more than 400 percent was seen in Aarti Industries, HDFC Asset Management Company and Multi Commodity Exchange of India.
A short build-up was seen in Aditya Birla Capital, Bandhan Bank and Aarti Industries, while a long build-up was seen in Aurobindo Pharma, Cipla and Ramco Cements.
Also Read: Lok Sabha passes finance bill 2023 amid din. Here are the highlights
Outlook for March 27
Ajit Mishra, VP-Technical Research, Religare Broking
The recent fall has put paid to hopes of sustained recovery and we might again end up seeing range-bound moves. For Nifty, major support is intact at 16,800. We reiterate our view to limit positions and maintain positions on both sides.
Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas
The Nifty witnessed an extremely volatile day of trade. On the hourly charts, the Nifty traded in the 16,910– 16,970 zone where the crucial Fibonacci retracement levels of the previous rise from 16,828–17,207 are placed.
This zone will be the make-or-break support zone. If the Nifty fails hold on to it, the index will likely start the next leg of the fall.
The daily momentum indicator has a positive crossover, which is a buy signal and also supports our view that the pullback rally is not complete. We maintain our positive outlook on the Nifty. On the upside, the initial hurdle is at 17,180–17,210, from where the Nifty can rise to 17,315–17,430.
Rupak De, Senior Technical Analyst, LKP Securities
The Nifty slipped below the crucial 16,950 level as bears remained in control. With the fall coming after a few days of consolidation, it indicates an increase in bearish bets. The momentum indicator RSI is in a bearish crossover.
In the short term, the index can slip to 16,750. On the higher end, resistance is at 17,200.
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