Sensex tanks 720 pts from day's high, ends 125 pts down; Nifty PSB drops 3%

On the weekly basis, the benchmark indices gained, thus taking their winning run to the fourth straight week

Analysts further said that the sharp decline in market capitalisation in China in general and technology stocks had dragged EMs’ YTD performance into negative territory, while developed markets’ performance was fairly strong.

In a volatile session on Dalal Street, the benchmark indices tumbled from record high levels to snap their three-day winning run amid losses in RIL, IT stocks and select banking counters. Despite a firm global market sentiment, the Indian indices settled in the red as profit taking ensued following a steep rally in the indices which saw them hitting significant landmarks.

After touching a record high of 59,737, the BSE barometer Sensex plunged 721 points from the high to end at 59,016, down 125 points. At the same time, its NSE counterpart Nifty50 settled the day 44 points down at 17,585. The 50-pack index had touched record peak of 17,793 in morning session. However, on the weekly basis, the benchmark indices gained, thus taking their winning run to the fourth straight week.

The fall was more pronounced in the broader markets. The BSE Midcap index sank 1.14 per cent and BSE Smallcap index 1.06 per cent, thus, underperforming benchmark Sensex. Overall, the advance-decline ratio on BSE stood at nearly 1:2, indicating that for every one share that rose, two declined.

Sectorally, PSU Bank index tanked the most among all sectors, reversing strong gains that were seen on Thursday amid expectations that FM Nirmala Sitharaman would announce National Asset Reconstruction Company Ltd (NARCL) that would acquire bad loans in an attempt to resolve them. While the announcement did come, investors preffered to take profits off the table, pushing the index 2.96 per cent lower.

It was closely trailed by Nifty Media & Realty that shed 2.38 per cent and 2.35 per cent, respectively. On the other hand, Nifty Media, Nifty Financial Services, Nifty Bank and Nifty Private Bank were the gainers. Nifty Auto setlled the day unchanged.

4:03 PM

MARKET VIEW :: Cut in small & midcap indices weakened market breadth

While the pace of vaccinations and encouraging export data helped Bulls get closer to the 60K mark amidst the FTSE & MSCI rebalancing of flows, profit taking took away all the gains ahead of the GST Council Meet. Even as the BFSI biggies held fort today, the cut in the Small & Midcap indices weakened market breadth as was evident in the Advance-Decline ratio at close today.

-- S Ranganathan, Head of Research at LKP securities

4:02 PM

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

Index closed a week at 17586 with gains of more than one percent and formed a bullish candle on the weekly chart. On Friday session index witnessed good profit booking resulting formed dark cloud cover sort of candle pattern on daily chart which considers to be a bearish reversal pattern by nature so any break below 17530 zone we may see more drag down the index, immediate support is still placed at 17500 followed by 17430 zone & resistance is coming near 17650-17750 zone also profit booking is suggested around mention hurdle zones.

4:00 PM

What dragged D-Street lower today?

Despite a strong opening, domestic indices gave up early gains to trade flat driven by profit booking and mixed global sentiments. PSU Banks were heavily wounded by profit booking although the government approved a guarantee of Rs.30,600 crores to the National Asset Reconstruction Company Ltd with an aim to clean stressed assets from the banking sector. Global markets traded cautiously bracing for the Fed Reserve and Bank of England policy meetings next week.

-- Vinod Nair, Head of Research at Geojit Financial Services

3:59 PM

IDFC slips over 1% after board approves divestment of MF business

>> The Board of Directors of IDFC Limited and IDFC Financial Holding Company Limited at their meetings held today i.e. September 17, 2021, have inter alia, considered and approved to initiate steps to divest its mutual fund business subject to requisite regulatory approvals, as applicable.

3:56 PM

eClerx gains 4% on buyback approval

>> eClerx board approves up to Rs 303 cr buyback at Rs 2,850/sh

>> eClerx revises Buyback price to Rs 2,850/sh from Rs 3,200/sh approved in August 13 board meet