It turned out to be a manic Monday for D-Street as stock benchmarks saw their worst fall of 2019, sparked by jump in crude oil prices.
The S&P BSE Sensex plunged nearly 500 points while Nifty50 closed below 11,600.
The ongoing earnings season and upcoming F&O expiry are expected to fuel volatility further.
The final tally on D-Street – the S&P BSE Sensex plunged 495 points to 38,645 while the Nifty50 closed 158 points down at 11,594. Both indexes saw their worst session since December 21, according to a Reuters report.
In terms of sectors, oil & gas, realty, banks, metal as well as auto stocks remained under pressure. NiftyBank plunged 535 points to close at 29,687, weighed down by losses in YES Bank, IndusInd Bank, PNB, ICICI Bank and Bank of Baroda.
“What we saw today was the biggest fall in 2019. But, there is no reason to worry, because India could still outperform if crude touches $ 75/bbl. However, above $ 80/bbl, there would be some concern for markets which could hurt macros and earnings for India Inc,” Ritesh Ashar – Chief Strategy Officer – KIFS Trade Capital, told Moneycontrol.
“But, at this point in time, we don’t recommend investors who went long on the index to book profits, instead they should sit tight. Technically, 11550 is strong support for the index,” he said.
Stocks in news
Shares of Jet Airways ended 5 percent lower on Monday after hitting a new 52-week low of Rs 132.20, losing 20 percent in the morning trade.
KPR Mill shares gained 5 percent as the board of directors will consider buyback of shares on April 29.
Alembic Pharmaceuticals rose 5 percent after the US health regulator approved Teriflunomide tablets, which are available in 7 mg and 14 mg strength.
Shares of GVK Power & Infrastructure surged 7 percent as the company is going to sell 49 percent stake in its airport subsidiary.
Goa Carbon ended 7 percent lower after the company reported Q4 net loss at Rs 8.8 crore against a profit of Rs 11.8 crore, YoY.
The European market is shut on account of Easter Holiday.
Asian markets ended mixed on Monday as Nikkei ended marginally higher at 22,217.90, while Kospi closed flat at 2,216.65.
On the other hand, Shanghai Composite shed 1.7 percent at 3,215.04.