It was 'Manic Monday' for the Indian markets as investors on D-Street turned poorer by Rs 3.5 trillion amid a rout in the global markets. Investors were cautious ahead of the FOMC meet this week which is expected to provide clarity on the outlook for tapering as well as interest rate timelines. Most global markets were also trading lower as investors were getting spooked by a possible spillover of China's Evergrande's debt woes.
Amid this backdrop, the 30-pack BSE Sensex closed the day 525 points lower at 58,491. During the day, it touched a high of 59,203 and a low of 58,390. Only six of the 30 Sensex stocks ended in the green, with HUL gaining the most at 3 per cent. The Nifty50 index, meanwhile, fell 1.07 per cent to end below the 17,400-mark at 17,396.
The broader markets too languished in trade today, ending the day with deep cuts. The BSE MidCap fell 1.79 per cent and the SmallCap 1.84 per cent, thus underperforming benchmark Sensex. The volatility remained high. India VIX surged by 14.83 per cent to 17.49 level.
Sectorally, barring the Nifty FMCG index, which rose nearly 1 per cent, led by gains in HUL, Marico and ITC, all sectoral indices ended in negative territory. The Nifty Metal index was the top loser of the day on weak demand sentiment in China, falling 6.6 per cent, followed by Nifty PSU Bank which was down 4.18 per cent and Nifty Realty which closed lower by 2.14 per cent.
That said, hotel stocks were in focus on hopes of business revival following the unlocking of the economy and pick-up in travel. Among the individual stocks, EIH, Taj GVK Hotels & Resorts and Chalet Hotels closed the day off day's high but up between 3-5 per cent, while Indian Hotels Company (IHCL) closed 8 per cent higher. It had surged 14 per cent in intra-day deals to hit a record high of Rs 169.20.
Shares of aviation companies too were in the spotlight during the day as the Street is bullish about strong passenger load factors and plans by airlines to expand their network in the domestic market. However, the stock of Interglobe Aviation fell 1.6 per cent, and that of SpiceJet closed down by 0.7 per cent amid profit-booking.
Among other stock-specific moves, shares of Mumbai-based drug maker Lupin ended 2.1 per cent down after the company informed exchanges that the US Food and Drug Administration (US FDA) concluded an inspection of its Goa facility with seven observations. Lupin said that it will address the observations satisfactorily and is committed to be compliant with Good Manufacturing Practice standards at its facilities.
Now, going into trade on Tuesday, the domestic benchmark indices will take cues from the global markets ahead of the US Federal Reserve policy meeting outcome on Wednesday. They will also closely follow how the Evergrane saga unfolds as it might continue to weigh on Asian peers, thus hurting sentiments back home. Further, the Rs 171 crore IPO by Paras Defence and Space Technologies will also open for subscription on Tuesday. The issue is priced in the band of Rs 165-175 per share. Most brokerages covering the issue have assigned it a 'Subscribe' rating.
Lastly, stock-specific news flow, as well as news related to COVID-19 vaccinations can also sway the markets on Tuesday.
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