Freaky Friday! Sensex plunges over 400 points; Nifty below 11,800

D-Street took a U-turn on June 21 after staging a smart rally in the previous trading session. The S&P BSE Sensex plunged by more than 400 points while Nifty50 saw a fall of more than 100 points – wiping out most of the gains recorded in the previous session.

The final tally on D-Street – the S&P BSE Sensex fell by 1.03 percent or 407 points to 39,194 while Nifty50 closed 107 points below at 11,724.

In terms of sectors, the S&P BSE Auto index fell 1.3 percent, followed by the S&P BSE Energy index which was down 1.1 percent, and the Telecom index dropped 1.08 percent.

The broader market outperformed benchmark indices – the S&P BSE midcap index fell by 0.38 percent while the S&P BSE Smallcap index was up 0.14 percent compared to over 1 percent fall seen in the S&P BSE Sensex.

Even though the broader market outperformed, more than 300 stocks on the BSE hit fresh 52-weeks low including Oracle Financial, GSK Pharma, CARE Ratings, Glenmark Pharma, Repro India among others.

For the week ended June 21, the S&P BSE Sensex fell by 0.65 percent while the Nifty50 saw a decline of 0.84 percent in the same period.

The market remained volatile throughout the week amid dovish commentary from US Federal Reserve as well as European Central bank (ECB). However, trade war concerns, rise in crude oil prices, delay in monsoon and a fall in foreign investor flows capped the upside.

“The S&P BSE Sensex declined 258 points (0.7 percent) in the past week to close at 39,194. Global markets rallied as global central banks (both ECB and Fed) signalled an easy monetary policy to counteract the slowdown and low inflation,” Sanjeev Zarbade, VP PCG Research, Kotak Securities told .

“FII outflows totalled $ 65 million for the past five days, while DII inflows stood at $ 181 million for the same period. Going ahead, the markets would continue to consolidate and may react to geopolitical tensions (in Iran), Crude prices and Monsoons,” he said.

Zarbade further added that with Union Budget around the corner, investors are advised to avoid speculative trades as there has been a significant increase in stocks that are making wild moves. At this juncture, investors need to be selective in stock picking.

Stocks in news:

Shares of Sobha fell 7 percent after about Rs 202 crore worth of shares changed hands via block deals.

Lakshmi Vilas Bank shares rose 10 percent after Competition Commission approved the merger with Indiabulls Housing Finance.

Aurobindo Pharma shares fell 4 percent after receiving a warning letter from the US health regulator for Srikakulam unit.

Shares of DHFL rose 5 percent after reports made rounds that the company has sold Rs 2,000 crore worth of its loan portfolio to offshore investors led by SC Lowy, a privately-held banking group headquartered in Hong Kong.

Global Update:

Asian markets ended mixed on June 21 as tensions in the Middle East continue to linger.

Nikkei was down 0.95 percent at 21,258.64, Kospi shed 0.27 percent at 2,125.62, while Shanghai Composite ended higher by 0.5 percent at 3001.98.

On the other hand, European markets are trading marginally higher amid escalating tensions between the US and Iran.Subscribe to Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.