Domestic equity markets ended the week with a drop as benchmark equity indices settled lower on Friday. The absence of supportive global cues weighed on the market sentiments, which dragged the headline peers lower in the last hour of the session.
Traders, on the other hand, remained cautious as lingering concerns about the recent turmoil in the banking sector continue to hang over the markets amidst fears of economic slowdown.
For the day, BSE Sensex plunged 398.18 points, or 0.69 per cent, to 57,527.10, whereas Nifty50 declined about 132 points, or 0.77 per cent, to 16,945.05. Broader markets underperformed the headline peers as BSE midcap and smallcap indices dropped more than a per cent, each. Fear gauge India VIX spiked over 5 per cent to the 15.24-mark.
In the intraday session, after the flat opening, Nifty traded above 17,050 and after making a day low of 17,117.90 in the morning trade. Nifty slides below the 17,000 level at the afternoon trade. Nifty forms a negative candle again on the weekly chart, said Rohan Shah, Head Technical Analyst at Stoxbox.
“Intraday traders can now look for long opportunities above the resistance level of 17,110 if the closing comes above 17,110 in the 15 min chart. Traders can look for fresh shorts only if nifty breaks the 16,850 level & remains below for 15 min to ensure a short,” he said.
All the sectors settled in red for the day. Nifty Metal, Realty, PSU bank and media indices, each, settled with a fall of more than 2 per cent. Nifty Auto, Financial Services and Private Bank indices declined about a per cent, each.
Bajaj Twins led the losers in the Nifty50 pack. Bajaj Finserv dropped 4 per cent, followed by 3 per cent in Bajaj Finance, Tata Steel, Hindalco, Adani Ports and Adani Enterprises, each. Hero Motocorp, Coal India, ONGC and Reliance Industries decline 2 per cent, each.
On the contrary, Cipla rose more than one per cent. Kotak Mahindra Bank, Apollo Hospitals, Infosys and Tech Mahindra were the other key gainers.
“Cues from both the global and domestic markets were subdued. The asset management industry was hit hard by tax changes and the elimination of the indexation benefit of debt mutual funds, said Vinod Nair, Head of Research at Geojit Financial Services.
“The volatility was fuelled by weak European markets, which was driven by banking stocks as CDS spread increased. Although all major sectors traded in the red, selling in the IT sector was limited despite warnings of muted growth,” he said.
A total of 3,630 shares were traded on BSE on Friday, of which 2,453 settled lower. 1,038 stocks ended the session with gains, while 139 shares remained unchanged. A total of 156 shares hit their upper circuit, whereas 212 tested the lower circuit levels for the day.
In the broader markets, Sundaram Clayton hit a lower circuit of 20 per cent as the company had fixed March 24, 2023, as the record date to determine eligible shareholders who will be entitled to receive bonus NCRPS shares. Campus Activewear dropped 8 per cent declined after block deals. Hikal shed another 8 per cent amid the fight over the control went to the high court.
On the other hand, TTK Healthcare rose more than 13 per cent, whereas ITI jumped over 11 per cent during the session. Sterling Tools, Butterfly Gandhimathi Appliances and Ador Welding gained 8 per cent, each. Cyient added over 7 per cent for the day.
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