Profit booking on Dalal Street dragged the Nifty from the record high level. It broke the 4-day winning streak dragged by the IT and financials. The BSE Sensex was down 580.09 points, or 1.31%, at 43,599.96, and the Nifty was down 166.60 points, or 1.29%, at 12,771.70.
“The increasing virus infections raised fears of additional restrictions and considering its impact on global economic activity, global market sentiments turned negative. This was in spite of the optimism surrounding the advanced stages of vaccine development. Indian markets also witnessed profit booking from recent highs, as investors turned cautious,” said Vinod Nair, Head of Research at Geojit Financial services.
“Financials led the losses while defensive sectors such as FMCG and Pharma fared better. The positivity in Auto sales numbers continued and could be an indicator of economic recovery. However, increasing virus infections, which is again being reported in some parts of India, can offset this nascent recovery. We can expect short term volatility in the markets and investors are advised to remain cautious,” he added.
Among sectors, the Nifty Bank and Nifty PSU Bank indices fell 3 percent each. Nifty Infra and IT indices shed 1 percent each, while Nifty FMCG and Energy indices ended in the green.
Broader markets outperformed the main indices with the BSE midcap down 0.65 percent, while smallcap index ended flat.
SBI, Coal India, Axis Bank, ICICI Bank and JSW Steel were among major losers on the Nifty, while gainers were Power Grid Corporation, ITC, NTPC, Tata Steel and Titan Company.
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Stocks & sectors
Sectorally, BSE Bank index fell nearly 3 percent, while BSE Metal and Realty indices declined over 1 percent. On the other hand, some buying was seen in the FMCG and power sectors.
A volume spike of more than 100 percent was seen in LIC Housing, Jindal Steel and Tata Chemicals.
Long buildup was seen in Tata Chemicals, Bajaj Finserv and MRF while short buildup was seen in LIC Housing, Shriram Transport and DLF.
More than 100 stocks hit a fresh 52-week high today on the BSE, including Tata Steel, Escorts and Hindalco.
Bulls appear to have grounded by the market as Nifty50 wiped out the gains of preceding three trading sessions before signing off the day with a Shooting Star kind of formation.
“In next trading session if the index settles below 12,800 levels on closing basis then it may kick in much needed corrective downswing with initial targets of 12,600 levels,” said Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory at Chartviewindia.in.