Sensex drops 555 pts, Nifty below 17,650 as energy woes hit global markets

Stock market LIVE: All sectoral indices ended in the red with capital goods, IT, metal, pharma, auto, realty and PSU Bank indices falling in the 1-3 per cent range

The Indian benchmark indices snapped a two-day gaining streak to end Wednesday's session nearly 1 per cent lower. The BSE Sensex fell 555 points to close at 59,189 amid weak cues from global markets as well as rising power and gas prices. The Nifty, meanwhile, closed below the 17,650-mark at 17,646, down 176 points. 

Meanwhile, Hindalco, SBI Life, IndusInd Bank, JSW Steel and Tata Steel were among the major losers on the Nifty. Tata Consumer, ONGC, UPL, Britannia and HDFC Bank were among major gainers. That said, all sectoral indices ended in the red with capital goods, IT, metal, pharma, auto, realty and PSU Bank indices falling in the 1-3 per cent range. Further, BSE midcap and smallcap indices fell 0.5-1.2 per cent.

3:54 PM

TECH VIEW :: Rohit Singre, Senior Technical Analyst at LKP Securities

Strong pressure has been witnessed in the nifty since the start of the day resulting index managed to closed a day at 17646 with loss of more than one percent and formed a bearish candle after forming two consecutive bullish candle previously. The index has decisively breached majority support zone now going ahead immediate support zone is coming near 17600-17500 zone if managed to sustain above-said levels one can expect a swift pullback and now good resistance is formed near 17700-17770 zone where again we may see some sort of profit taking.

3:54 PM

CLOSING COMMENTS :: Vinod Nair, Head Of Research at Geojit Financial Services

Weak global markets which resulted in profit booking in metals and IT stocks led domestic indices to trade in red, trimming its early gains. Spike in crude prices is spooking the Indian market while inflation is affecting US bond yields. RBI commenced its three-day MPC meeting in which the central bank is expected to keep rates unchanged, however, it is likely to announce measures to gradually pump out liquidity from the economy.

3:53 PM

ONGC extends gains, hits fresh 52-week high as crude prices rise further

3:51 PM

Marico ends off day's high on profit taking

>> The stock hit a new high in intraday deals on healthy Q2 biz update

3:43 PM

Sector Watch :: All sectors bleed; Metals & PSU Banks worst perfomers

3:42 PM

Broader markets end in the red

3:38 PM

Top Sensex drags in today's session

3:35 PM

Sensex Heatmap | Only 3 stocks close in the green

3:34 PM

CLOSING ALERT :: Nifty ends below 17,650

3:32 PM

CLOSING BELL :: Sensex snaps 2-day winning run, tanks 555 points

3:30 PM

ALERT :: Aramco's m-cap rises above $2 trillion for the first time since 2019

>> Aramco close to becoming world's most valuable company

(Source: TV Report, Agencies)

3:22 PM

Currency check :: Rupee at 6-month low, nears 75/$-mark

Source: Bloomberg

3:19 PM

ALERT :: ZEEL has moved to NCLAT in Invesco case

(Source: Agencies)

3:13 PM

EXPERT TAKE :: How should investors ride energy crisis?

Currently, India’s electricity demand are largely met by coal, the inventory of which is low today. In the near term it can have a negative effect on the economy due to the rise in electricity prices. However, it is expected to be supplemented by higher imports and dispatches by Coal India. The current high demand is also expected to normalize as festival season demand is addressed, it is unlikely to impact India in the medium to long term"

 

What investors should do?

 

Largely, it will have a negative impact on Indian listed companies which depends on energy-related inputs like crude, gas & coal. While, it will have a positive effect on integrated companies like Oil & Gas, Metals & Mining.

Investors should avoid this space in the short term due to high global volatility and uncertainty on the Indian economy which are mostly takers of price hike. On a medium to long-term basis, buy into sectors like Gas, Pipe Lines & Green Energy companies due to positive government reforms and plan to reform the power sector.

Views by: Vinod Nair, Head of Research at Geojit Financial Services

 

 

3:13 PM

CABINET BRIEFING

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