Benchmarks fall 15% from record peak, end at 8-mth low; Sensex dips 1491pts

CLOSING BELL

Benchmark indices slumped to their lowest levels in eight months as the US and European Union mulled boycotting importing oil from Russia. Consequently, fears of tighter oil and gas supplies, higher inflation and, thus, faster-than-expected rate hikes by global central banks hit investor sentiment. Brent crude futures hit their highest level since 2008, hitting the $130 per barrel-mark intra-day.

Against these headwinds, the BSE Sensex slumped nearly 2,000 points and hit a low of 52,367 in the intra-day trade. It, however, recovered marginally on the back of buying in Bharti Airtel, HCL Tech, Infosys, ITC, and Tata Steel and ended at 52,843, down 1,491 points or 2.74 per cent.

On the NSE, the Nifty50 index touched an intra-day low of 15,711 before settling at 15,863, down 382 points or 2.35 per cent. Both the indices are now down 15 per cent from their record high peaks touched in October last year. 

Apart from the four gainers on the Sensex, ONGC, Hindalco, Coal India, UPL, Cipla, ITC, NTPC, and JSW Steel were the additional gainers on the Nifty. Together these stocks were up in the range of 0.7 per cent to 13 per cent.

On the downside, IndusInd Bank, Maruti Suzuki, Bajaj Finance, Axis Bank, Britannia, Bajaj Finserv, Tata Motors, Ultratech Cement, ICICI Bank, SBI, Hero Moto, HDFC, L&T, HUL, RIL, and HDFC Life tumbled between 3.5 and 8 per cent.  

Broader markets, too, fell in tandem with the benchmarks with the BSE MidCap and SmallCap indices closing 2.2 per cent lower each. Individually, JK Cement, Arvind Fashions, Brigade Enterprises, Indigo Paints, and IndiaMART InterMESH fell up to 11 per cent. 

Overall, sellers outnumbered buyers in the ratio of 34:1 with 2,601 stocks declining on the BSE as against about 857 advancing stocks.

Sectorally, indices of rate sensitive sectors such as Auto, Realty, Bank, Financial Services fell between 4 and 5.5 per cent. The Nifty Metal index was the only gainer in this manic market as it rose 2.5 per cent.

Global markets

European stocks tumbled on Monday after news that the US and European allies are considering a ban on Russian oil imports, posing a risk of global "stagflation". The pan-European Stoxx 600 index fell 3.6 per cent in early trade, with banks plunging 7.6 per cent to lead losses while oil and gas jumped 2.3 per cent.

On Wall Street, futures of all three main indices were down up to 2 per cent. Earlier in Asia, Nikkei plunged 3 per cent, Kospi 2.3 per cent, Hang Seng 4 per cent, Shanghai Composite 2 per cent, and ASX200 1 per cent.

4:08 PM

MARKET COMMENT :: Ajit Mishra, VP - Research, Religare Broking

Markets plunged sharply lower and lost over 2%, tracking a continuous surge in the crude and feeble global cues. The benchmark opened gap-down and oscillated in a broader range till the end. Meanwhile, sectoral indices traded mixed front wherein Telecom, IT, Metal and Oil & Gas ended with gains whereas Auto, Banks and Capital Goods were among the top losers. Consequently, the Nifty index breached the psychological mark of 16,000 to close at 15,863 levels. The broader markets too ended with similar losses.

 

Markets are rattled with a sharp surge in crude amid the fear of further sanctions on Russia. Besides, there’s no sign of de-escalation of tension between the two nations. In short, we expect volatility to remain high and suggest keeping a close watch on global markets for cues. On the domestic front, state elections exit polls and actual results on March 10 would be actively tracked. 

4:01 PM

BSE Stats :: 161 stocks hit 52-week lows; 460 end at lower circuits

3:59 PM

Nifty Metal index defies market mood lifted by Hindalco, Coal India, Vedanta

3:57 PM

Nifty Bank index corrects 20% from record peak, ends 4.5% down

3:55 PM

Nifty Realty index worst hit index today, tanks 5.5%

>> Brigade Ent, Indiabulls RE, Oberoi Realty fall in the range of 7-9%

3:52 PM

Index Contributors :: RIL, ICICI Bank, HDFC duo biggest drags on the Sensex today

3:48 PM

BSE SmallCap index slips 2.3%; GOCL, JK Cement worst hit

3:46 PM

BSE MidCap index ends 2.2% down

3:44 PM

Sectoral Trend :: Metal index ends as the sole gainer

3:42 PM

Sensex Heatmap :: Only 4 stocks end higher

3:38 PM

CLOSING BELL :: Benchmarks end at 8-month lows

>> Sensex ended at 52,843, down 1,491 points or 2.74 per cent.

 

>> On the NSE, the Nifty50 index touched an intra-day low of 15,711 before settling at 15,863, down 382 points or 2.35 per cent. 

3:30 PM

MARKET CHECK

3:16 PM

Balkrishna Industries recovers 8% from day's low, up 3% in a weak market

“The company has successfully commenced commercial production of the brownfield expansion and debottlenecking project at Bhuj plant ahead of schedule. This will result in increased production of tires up to 50,000 MTPA. The complete ramp-up in production is expected to be achieved in the next 6 months,” BIL said. READ MORE

2:59 PM

IndusInd Bank, Axis Bank, Maruti lead losses on Nifty

 

2:46 PM

Market commentary : Investors should focus on economy facing sectors

<< The southward journey is continued in the Indian equity market on the back of intense geopolitical tension.

 

<< Brent crude is trading near $130 per barrel which is a multiyear high level. Higher crude oil prices are leading to weakness in the rupee whereas relentless selling by FIIs is also causing pressure in our market.

 

<< FII selling has reached above their selling during the global financial crisis. Higher commodity prices are fueling inflation fear and that may lead RBI to increase interest rates faster than anticipation. 

 

<< Geopolitical uncertainty is still one of the biggest issues otherwise we are in a structural bull market where we are seeing the first meaningful correction that will provide great buying opportunities for long-term investors.

 

<< Technically, the overall structure is weak however 15,500 is a sacrosanct support level where we can expect a bounceback while below 15,500, we can expect levels of 15,000. While, 14,000 is a worst-case scenario.

 

<< On the upside, 16,300-16,500 will be the first resistance area, while bulls will get confidence only at a decisive move above the 17,000 level. 

 

<< Investors should focus on the domestic economy facing sectors like capital goods, infrastructure, real estate, banking, etc. IT sector may continue to do well where ongoing correction is an opportunity to add some quality stocks.

 

<< The auto sector is also providing favorable risk-reward opportunities after a period of underperformance.

 

<< Our top picks in this correction are Thermax, KNR Construction, LT, SBI, ICICI Bank, Infosys, KPIT, Tata Power, Tata Motors, Minda Industries, SBI Life insurance, Bajaj Finserv, Canfin homes, Sobha, Brigade Enterprises, Kajaria Ceramics, and Reliance.

 

Views by Parth Nyati, Founder, Tradingo