Domestic equity markets settled sharply lower on Friday, tracking the negative global cues. However, headline peers tried a small recovery during the fag end of the session, but was insufficient to erase the big losses. A steep fall in SVB Bank shares and collapse of Silver Capital spooked the global sentiments.
Traders will be keenly looking at the US unemployment data, scheduled later in the day. Alongwith, US inflation numbers are due next week, which will guide the markets in the near-term. Overall sentiments, however, remain feeble. Benchmark indices shed a per cent each on a weekly basis.
For the day, the 30-share pack BSE Sensex plunged 671.15 points, or 1.12 per cent, to 59,135.13, while NSE’s Nifty50 tanked 176.70 points, or 1 per cent, to 17,412.90. BSE midcap and smallcap indices outperformed the headline peers, shedding a little more than half a per cent each. Fear gauge India VIX spiked over 5 per cent to 13.41-levels.
Markets crumbled for the second straight session as weak global cues triggered selling across the board with banking stocks taking the maximum pounding. The sentiment has been bruised by the recent US Fed statement that more rate hike is on the card to keep inflation under control, said Amol Athawale, Deputy Vice-President – Technical Research, Kotak Securities
“The Nifty has formed a strong bearish candle on weekly charts and it is comfortably trading below the 20- and 50-day SMA. For the positional traders, 17550 would act as a medium-term resistance zone and below the same, the index could slip till 17150. On the flip side, a minor pullback rally is possible, if the index trades above 17425 and could move up to 17480-17500,” he said.
On a sectoral front, Nifty FMCG index was the sole gainer. Nifty PSU Bank and Private Bank indices dropped 2 per cent each, followed by Nifty Financial Services index. Nifty Media, Real Estate and Metal indices declined a per cent each.
Adani Enterprises Ltd topped the losers in the Nifty50 pack, dropping over 3 per cent each, whereas HDFC also posted similar cuts. Apollo Hospitals, HDFC, IndusInd Bank and State Bank of India shed more than 2 per cent each. Axis Bank, Bajaj Finserv and Mahindra & Mahindra were other key laggards.
Among other Adani Group counters, Adani Wilmar Ltd and NDTV declined 5 per cent, followed by an up to 2 per cent fall in ACC and Ambuja Cements. However, Adani Ports settled in green, whereas Adani Power, Adani Transmission, Adani Total Gas, and Adani Green Energy hit an upper circuit of 5 per each.
The global market’s cautious attitude towards the probability of a sharper rate hike was exacerbated by further negative signs from the US market, said Vinod Nair, Head of Research at Geojit Financial Services
“Selling intensified as the market awaited the release of US unemployment and non-farm payroll data, which will have a significant impact on the upcoming Fed meeting. However, higher-than-expected jobless claims in the US that came in yesterday helped alleviate some concerns about the Fed becoming stricter,” he said.
On the contrary, Tata Motors jumped over one per cent as its subsidiary Tata Technologies filed DRHP with Sebi. NTPC and Maruti Suzuki also added over a per cent each. Britannia Industries, Power Grid, Titan, Sun Pharma and Adani Ports were also slightly up.
A total of 3,611 shares were traded on BSE during Friday’s session, of which 2,100 settled lower. Among remaining names, 1,405 shares advanced while 106 remained unchanged for the day. A total of 159 shares hit an upper circuit during the session, whereas 165 others tested the lower circuit levels.
In the broader markets, Deep Polymers hit an upper circuit of 20 per cent, whereas Nahar Spinning Mills advanced over 15 per cent. Nahar Capital and Nahar Polyfilms also rose about 12 per cent each. Sequent Scientific was up 8 per cent despite the selloff.
On the downside, Nucleus Software Exports hit a lower circuit of 10 per cent, whereas GRM Overseas declined 7 per cent. Equitas Small Finance Bank and Patel Engineering retreated over 6 per cent each.
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