Market wrap: Sensex plunges nearly 950 pts, Nifty ends below 17,000

Top headlines

• Sensex plunges nearly 950 pts, Nifty ends below 17,000 in broad-based sell-off

• Dow Jones Futures, European shares climb

• Vodafone Idea shares hit 31-month high; tech charts show 40% upside

• Anand Rathi Wealth IPO subscribed over 8 times

Selling momentum intensified during the fag end of the session on Dalal Street today, dragging benchmark indices over 1 per cent lower. The BSE Sensex slumped 949 points to close at 56,747, while the Nifty50 ended below the 17,000 mark at 16,912.

The Sensex touched a low of 56,687 earlier today and the Nifty50 tanked to 16,892.

The rising number of Omicron-based coronavirus cases in the country, along with precaution ahead of the Reserve Bank of India's monetary policy decision prompted investors to book profits on the bourses today.

All the 30 Sensex constituents ended in the red, while only UPL managed to make some gains on the Nifty. IndusInd Bank, Tata Consumer Products, Bajaj Finserv, TCS, HCL Tech, and Bharti Airtel were the worst-hit large-caps on the 50-share index. These shares dropped in the range of 2.8 per cent to 3.7 per cent.

In the broader markets, the BSE MidCap and SmallCap indices tanked 1.4 per cent each.

Among individual stocks, the shares of Vodafone Idea hit a 31-month high of Rs 15.8, up nearly 10 per cent in intra-day trade on the BSE. The stock of the telecom services provider was trading at its highest level since May 8, 2019, and has zoomed 235 per cent from its 52-week low level of Rs 4.55 touched on August 5, 2021.

According to tech charts, if the stock manages to stay above the Rs 15 level, it may move towards Rs 21, gaining almost 40 per cent in the short term. The stock ended 4 per cent higher at Rs 15 apiece today.

Sectorally, all indices on the NSE ended in the negative, led by the Nifty IT index, which was down nearly 3 per cent. The Nifty Auto index fell around 2 per cent and the Nifty Bank index slipped 1 per cent.

The sharp decline in Indian equities came even as European shares and US stock futures traded higher in afternoon deals. The pan-European Stoxx 600 added 0.7 per cent in early trade, with oil and gas stocks climbing 1.4 per cent.

Dow Jones Futures, meanwhile, were up 250 points, or 0.7 per cent, indicating a positive start on Wall Street later today. S&P500 and Nasdaq Futures, too, were up between 0.4 and 0.5 per cent.

However, stocks in Asia-Pacific markets ended mixed, with Japan's Nikkei ending 0.4 per cent and Hong Kong's Hang Seng sliding 1.76 per cent. South Korea's Kospi added 0.2 per cent.

Let’s now take a look at the primary market. The three-day initial share sale of Anand Rathi Wealth has been subscribed over 8 times so far on the final day of the issue. The portion reserved for retail investors has been subscribed 7.6 times, while that of non-institutional investors has been subscribed 19 times.

On Tuesday, investors may continue to stay cautious until any definitive data on the Omicron variant emerges. Besides, market participants may also choose to be on the sidelines ahead of the Reserve Bank of India's monetary policy decision on Wednesday.

Technically, market research suggests that 16,800 will be an important support level in the market. If the Nifty fails to hold this level, we will witness correction till the level of 16,400. Investors are advised to refrain from building a fresh buying position, until market conditions improve.