Sensex swings 760 pts, ends 200 pts down; Nifty holds 17,200; IT stocks up

CLOSING BELL: IT, select auto and banking stocks aided the market recovery on Monday. TCS gained nearly 2 per cent ahead of its Q2 result.

CLOSING BELL

After a dismal start to the trading day, the key bechmark indices recouped losses in the latter half led by renewed buying interest in IT, and select auto and banking stocks. TCS in particular was up nearly 2 per cent ahead of its Q2 results later today. READ MORE

Towards the end, a notable recovery in the US stock futures also aided the sentiment. Meanwhile, elsewhere in Asia, Hang Seng and Shanghai Composite ended with steep loss of up to 3 per cent after China imposed fresh lockdowns and travel restrictions after the number of new daily Covid-19 cases tripled during the weekend holiday.

The BSE benchmark index recovered from a low of 57,366, to end the day at 57,991 - down 200 points. The NSE Nifty 50 was down 74 points at 17,241.

"Fear of an aggressive rate hike by the Fed on the back of strong employment data in the US, disrupted the global equity trend. Inflation in the US is forecasted to stay high given low supply and high demand scenarios. To bring some parity in the economy, the Fed will have to target to lower demand by increasing the unemployment rate, which is not factored by the market. In addition, rising crude prices and depreciating rupee is increasing the risk of imported inflation in India, affecting the domestic market." said, Vinod Nair, Head of Research at Geojit Financial Services.

Among the Sensex 30 stocks, apart from TCS, Axis Bank rallied nearly 3 per cent. Maruti, Tech Mahindra, Wipro and Infosys were the other prominent gainers. 

On the flip side, Asian Paints, Titan and ITC slipped nearly 2 per cent each. Reliance Industries, HDFC Bank, HDFC, Nestle India and Kotak Bank were the other notable losers.

Also read:  Analysts bet on TaMo's India biz as JLR Q2 sales disappoint; stock dips 5% 

 

In the broader markets, the BSE Midcap and Smallcap indices were down over 0.5 per cent each. Whereas, among sectors, the BSE IT index was the sole gainer - up nearly 1 per cent. On the other hand, the Consumer Durables, Power, FMCG and Capital Goods indices lost significant ground. 

The BSE Bankex was down marginally at close, down 0.1 per cent at 44,657, having recovered smartly from the day's low of 43,990.

Among other sectors, shares of shipbuilding & allied services extended their recent outperformance. Mazagon Dock Shipbuilders and Garden Reach Shipbuilders & Engineers logged new highs in trade on Monday. READ MORE

The overall breadth was fairly negative, with nearly 2,100 declining stocks versus 1,460 advancing shares on the BSE.

Primary Market Update

Tracxn Technologies IPO received lukewarm response, and was subscribed only 18 per cent as of 03:30 PM. The retail quota was almost fully subscribed. Here's what brokerages recommend to do. READ MORE
 

3:55 PM

MARKET COMMENT :: 'Rising crude prices, depreciating rupee increasing risk of imported inflation in India'

Fear of an aggressive rate hike by the Fed on the back of strong employment data in the US, disrupted the global equity trend. Inflation in the US is forecasted to stay high given low supply and high demand scenarios. To bring some parity in the economy, the Fed will have to target to lower demand by increasing the unemployment rate, which is not factored by the market. In addition, rising crude prices and depreciating rupee are increasing the risks of imported inflation in India, affecting the domestic market.

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

 

3:53 PM

IPO Update :: Tracxn Tech issued subscribed less than 20% till 3:30 PM

3:52 PM

SIP flows into MF scheme hit new high of Rs 12,976 cr in Sept: Amfi data

The surge in investments in equity schemes is despite the fact that the market was in the red last month, with the Nifty50 having shed more than three per cent. READ MORE

3:50 PM

CURRENCY ALERT :: Rupee ends flat at 82.32 against US Dollar

3:50 PM

BSE Stats :: Less than 1,500 stocks in the green vs over 2,100 in the red on the BSE today

3:49 PM

Buzzing stock :: Tata Motors drops 4% on lower-than-estimated JLR sales in Q2

3:48 PM

Buzzing stock :: IGL falls 2% despite price hike in Delhi-NCR

3:47 PM

Buzzing stock :: Paytm reports over 480% YoY rise in loan disbursal in Q2; stock up 3%

3:46 PM

Buzzing stock :: Jaiprakash Associates jumps 10% on report Adani Group may buy Cement biz

3:45 PM

Buzzing stock :: Atul Auto surges over 7% as Board allots 5 million convertible warrants to Vijay Kedia

3:43 PM

Sector check :: Nifty Realty index dips 1%; Prestige, Indiabulls RE fall over 2% each

3:42 PM

Sector check :: Nifty PSU Bank index ends as top laggard; SBI sole gainer

3:41 PM

Sector check :: IT stocks buck trend; index rises 1% ahead of Q2 nos

3:39 PM

BSE SmallCap index : Unichem Labs, Safari Ind slide among small-caps

3:38 PM

BSE MidCap indx :: Delhivery, VBL, Ashok Leyland top mid-cap losers