While Sensex crashed over 1,900 points, more than 200 stocks hit fresh 52-week high today

The March series started off with deep correction on the Street weighed down largely by rising bond yields and weak global cues, but some stocks withstood the storm

February 26, 2021 / 05:00 PM IST

The March series started off with bears tightening their grip as market witnessed a deep correction. The rising bond yields in the US and higher oil prices were largely responsible for the sell-off. India VIX surged 23 percent to over 28 levels.

Selling was seen across the board. Nifty Bank and Financial Services indices fell nearly 5 percent each, auto, IT, metals, FMCG and pharma were down 1.5-3 percent each. Nifty Midcap 100 and Smallcap 100 indices also corrected over a percent each as about two shares declined for every share rising on the NSE.

The BSE Sensex plunged 1,939.32 points, or 3.80 percent, to close at 49,099.99, while the Nifty50 dipped 568.20 points, or 3.76 percent, to 14,529.20 and formed large bearish candle on the daily charts.

Also read: Taking Stock | Sensex, Nifty tank 4%; investors lose Rs 5 lakh crore in a single day

"On Thursday, the US 10-year yield climbed to 1.614 percent, which is the highest in a year. Concerns over inflation in the US is the reason behind the rise in bond yields The bond market is expecting the likely rise in inflation to push the US Federal Reserve to either lower monthly bond-buying or hike interest rates, an adverse factor for markets like India, which have been a major recipient of foreign inflows of late. This is despite the US Fed's reassurance of keeping the low cost of money intact," said Devang Mehta, Head Equity Advisory at Centrum Broking.

Close

Indian markets have seen a stellar rally in the past couple of months due to strong foreign flows, improving macros & return of corporate earnings growth. "The ingredients of a structural bull market remain intact for India. Such ebbs and corrections will provide opportunities for long-term investors to take advantage of volatility and accumulate quality businesses at reasonable valuations and price points," he said.

However, there is some positivity in the market as more than 200 stocks hit fresh 52-week high despite steep fall in the benchmarks.

The list included ACC, Arvind, APL Apollo Tubes, BEML, BHEL, Dredging Corporation, GE Shipping, Gravita India, Greaves Cotton, Hindustan Copper, HUDCO, Just Dial, Kennametal, KSB, Bajaj Holdings, MMTC, NALCO, NBCC, NMDC, RCF, SMC Global, Tata Chemicals, Tata Coffee, Thermax, Vedanta and Zensar Technologies.

33 out of 200 stocks touched a fresh record high today. These include Vaibhav Global, FACT, Linde India, ASM Technologies, Manali Petrochemicals, Sundaram Finance, Orchid Pharma, Aarnav Fashions, Dalmia Bharat and Deepak Nitrite.

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Moneycontrol News
first published: Feb 26, 2021 05:00 pm

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