Domestic stock indices on Monday extended their recent fall to the second straight session, dragged by banking and financials and energy stocks. The momentum in the market was muted, with a negative bias, amid lacklustre cues from global markets. US stocks markets would be shut today on account of Presidents’ Day.
Key indices fell, thanks to selling in select index heavyweights such as Reliance Industries, TCS and HDFC twins.
At close, the 30-share BSE Sensex was down 311 points, or 0.51 per cent, at 60,692. The broader NSE Nifty index fell 100 points, or 0.56 per cent, down to close at 17,845. Most Asian markets settled positive, but with minor gains. Mid and small cap shares finished on a mixed note, with the Nifty Midcap 100 edging 0.08 per cent higher and smallcap shed falling 0.34 per cent. India VIX jumped 2.27 per cent to 13.38.
All eyes would now be on the minutes of the recent Fed policy review scheduled to be released on Wednesday .
“Stocks are getting beaten ahead of the release of Fed minutes on Wednesday. Maintaining its guard against inflation, the Fed is expected to stay hawkish. It is unlikely to have a dire effect on the global stock market. However, the consequence of constant high-interest rates is causing a slowdown in demand and the earnings outlook. Hence, the near-term trend will be cautious,” said Vinod Nair, Head of Research at Geojit Financial Services.
A total of 13 out of 15 sectoral indices on NSE settled in the red. Nifty Bank, Nifty Financial Services and Nifty Oil & Gas underperformed the NSE Nifty by falling 1.05 per cent, 0.98 per cent and 1.14 per cent, respectively.
Among Adani group stocks, Adani Enterprises dropped nearly 6 per cent for the day. Adani Transmission and Adani Total Gas hit their one-year low levels and closed lower.
Among non-Adani group names, Cipla declined over 6 per cent after the drug major’s Pithampur manufacturing facility received eight inspectional observations in Form 483 from the United States Food and Drug Administration (USFDA).
Shilpa Medicare tanked 8.42 per cent to settle at Rs 271.30. TCNS Clothing Co cracked 6.68 per cent to Rs 466.75. Britannia, BPCL and UPL also fell up to 1.90 per cent.
Index heavyweights Reliance Industries, TCS and HDFC twins (HDFC and HDFC Bank) declined up to 1.33 per cent. On the flip side, Divi’s Labs, UltraTech, Tech Mahindra, PowerGrid and Hindalco jumped up to 2.55 per cent.
Stocks such as Sumitomo Chemical India, Star Health and Allied Insurance Company and EKI Energy Services surged up to 11.29 per cent.
Out of a total of 3,738 stocks that traded during the day, 2,175 settled with cuts while 1,394 others ended higher. The rest 169 stocks stayed unchanged. A total of 231 stocks hit their upper circuit limits on BSE. A total of 241 stocks hit their lower circuit limits.
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