RIL, banks drag Sensex 871 pts lower at 49,180, Nifty below 14,550

Weightage-wise, Reliance Industries, ICICI Bank, HDFC Bank, HDFC, Infosys, Axis Bank, ITC, and SBI were responsible for 600 points cut in the Sensex

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Stock market updates: Feeble global sentiment kept market gains in check as investors chose to stay on the sidelines on Wednesday. Asian shares skidded to a two-week trough on Wednesday and the dollar neared four-month highs as coronavirus lockdowns in Europe and potential US tax hikes hit risk appetite.

Add to it, North Korea is said to have fired non-ballistic cruise missiles over the weekend targeting the US. President Joe Biden, however, has said he does not consider North Korea's act as a provocation.

Against this backdrop, MSCI’s broadest index of Asia-Pacific shares outside of Japan fell 1.3 per cent, Japan’s Nikkei stumbled 2 per cent while South Korea’s KOSPI slipped 0.4 per cent. Chinese shares were in the red for a second day with the blue-chip CSI300 index down 1.65 per cent. Hong Kong’s Hang Seng skidded 2.2 per cent.

In Europe, the pan-regional STOXX 600 index fell 0.6 per cent in early trade. However, futures of three main US stock indicies were trading higher in the range of 0.3 per cent to 1 per cent.

Back home, benchmark indices turned sharply lower in the last hour of trade with the frontline S&P BSE Sensex plunging 931 points to hit a low of 49,120. The downfall was contained at 49,180 level with a cut of 871 points, or 1.74 per cent, by close. Only two constituents -- Power Grid and Asian Paints -- managed to settle the day in the green while all other counters fell like ninepins. M&M bled the most, down over 4 per cent on the Sensex, followed by SBI, ICICI Bank, Axis Bank, IndusInd Bank, L&T, ITC, NTPC, and ONGC.

Weightage-wise, Reliance Industries, ICICI Bank, HDFC Bank, HDFC, Infosys, Axis Bank, ITC, and SBI were responsible for 600 points cut in the Sensex. All these stocks were down between 1.5 per cent and 4 per cent.

On the NSE, Cipla was the only additional gainer on the Nifty as all other 47 constituents declined. The index ended at 14,549 level, down 265 points or 1.79 per cent.

In the broader markets, the S&P BSE MidCap and SmallCap indices ended 1.6 per cent and 1.4 per cent lower, respectively.

In terms of sectoral trends, all the key indices, barring pharma, ended the day in the red. The Nifty PSU Bank, Metal, and Realty indices slipped up to 3 per cent, while the Nifty Private Bank, Financial Services, Auto, and Bank indices were down 2 per cent. The Nifty Pharma index, meanwhile, was up 0.08 per cent.

5:02 PM

TECH VIEW :: Nagaraj Shetti, Technical Research Analyst at HDFC Securities

The short term trend of Nifty seems to have reversed down after a small upside bounce. Next lower levels to be watched around 14350-14300 in the next few sessions before showing another round of small upside bounce from the lows. Any pullback rally could find resistance around 14675-14750.

4:50 PM

MARKET CLOSING COMMENT :: Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Sec

Today was a bad day for the market. The breadth of the market was extremely poor. About two-third of the listed stocks were down as well as all sectoral indices closed in negative territory. The Nifty / Sensex closed lower at 14549/49180. Tomorrow ahead of the March 2021 F&O expiry the market is likely to be in turmoil phase and the Nifty / Sensex may fall to 14350/48580 to 14250/48300 levels. The focus should be on Pharmaceuticals and Technology companies. On the higher side, 14650/49600 and 14700/49800 would be major hurdles

4:38 PM

MARKET CLOSING COMMENT :: Deepak Jasani, Head of Retail Research at HDFC Securities

Indian benchmark equity indices fell the most in a month on March 24. Nifty opened gap down and fell in the morning session. A second bout of selling happened post 1340 Hrs and the Nifty closed almost at its intra day low. At close the Nifty 50 index fell 1.8% to end at 14,549. The index has fallen to its lowest in nearly two months.

The main reason for the fall today included rising cases of Covid-19 in India and across the globe, which could delay the economic recovery. This is also evident from the fall in crude prices over the last few days. The overall number of global Covid-19 cases has surpassed 124 million, while the deaths have surged to more than 2.73 million, according to the Johns Hopkins University. The head of the World Health Organization said recent increases in deaths and cases represent "truly worrying trends." There is some Covid fear in the air again. The market seems doubtful that the vaccination race against the third pandemic wave can be won quickly.

Reports of levy of potential tax taxes by the US President to fund the infra spend also dampened sentiments. In India, the Supreme court judgement on NPAs also opens up the possibility of Banks having to make higher provisions in the March and June quarter. If the economic recovery is delayed, India’s fiscal situation and credit situation could deteriorate.

Nifty is close to 14468 which is the make or break level for the near term. Fall with lower volumes suggest that bottom fishers are staying away while sellers are hopeful of a bounce in the near term. On rises, 14638 could provide resistance.

4:25 PM

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

The bears took charge in today’s session as the Nifty index ended with a sharp cut of nearly 2%. Weak global cues combined with the news of a new mutant of the COVID-19 in India spooked participants. The broader markets too witnessed sell-off as both midcap and smallcap ended with losses of 1.7% and 1.6% respectively. On the sector front, all indices ended in the red wherein metal, auto and banking were the top losers.

Though we have not seen any major correction in the benchmark yet, the uneasiness is certainly increasing with the rapid rise in the COVID cases. Besides, global cues are also mixed. We were hoping for some respite from the banking front but it failed to build on the previous session’s gain. Put together, indications are now pointing towards further slide in the index while volatility is likely to remain high due to the scheduled expiry of March month contracts. We reiterate our bearish yet cautious view and suggest maintaining positions on both sides.

4:16 PM

TECH VIEW :: Ashis Biswas, Head of Technical Research at CapitalVia Global Research

The market continued to witness volatility at its recent high and stayed in the range of 14500 to 14900 (Nifty 50). The market's short-term technical condition appears like a sideways correction is in the process. Any corrective wave down should find support around 14500. The short-term trader can adopt buying on the dip while selling at a rally towards 14800-14900 as the best possible trading strategy at the prevailing market condition. The volatility is observed to expand in today's trading session before the monthly F&O contract expiry tomorrow. The traders are advised the long-term investors to refrain from building a new buying position until further improvement.

4:04 PM

MARKET CLOSING COMMENT :: Vinod Nair, Head of Research at Geojit Financial Services

Indian market witnessed across-the-board selling amidst high volatility owing to weak global cues and spike in Covid cases. All sectors barring pharma witnessed selling as second and third wave infections in India and Europe, respectively, are bound to hamper economic recovery. Reports of a potential tax hike in the US also impacted the market sentiment

3:57 PM