Indian equity markets witness third biggest fall of the year

Asia's Tech News Daily

#BSE Sensex, #Market Edge, #Nifty, #stock market fall

The markets witnessed intense selling pressure today from FIIs which the DIIs were not able to match with their purchases.

It was a ‘Black Friday’ in its true sense for the Indian investors on November 25 as they lost Rs 7 lakh crore of their wealth in a single day. The market declined nearly 3% with BSE Sensex falling by 1,687.9 points and Nifty shedding 509.8 points.

This was the third biggest single-day fall of the year 2021. The markets were witness to their worst fall of this year on February 26, when the Sensex had lost 1,939.32 points.

On April 12, Sensex had lost 1,707.94 points to register the second biggest fall of the year. Today’s decline, however, was the steepest since the markets touched record highs on October 19, 2021, when Sensex kissed 62,245 and Nifty reached 18,604.

The markets have been in a correction mode since they touched their peaks as various global factors are inhibiting any further rise.

The domestic market has corrected nearly 9% from its peak as weak global cues, persistent selling by FIIs, and premium valuation has made investors cautious.

“Going ahead market is likely to continue being under pressure till clarity emerges over how dangerous the new COVID variant can be”, said Siddhartha Khemka, Head – Retail Research at Motilal Oswal Financial Services Ltd (MOFSL).

“Already market is precarious over timing of fed raising the interest rate. With the emergence of new, highly mutated Covid-19 variant and EU announcing the temporary ban of flights from South Africa along with few EU countries already under full lockdown scenario, market sentiments have taken a big blow”, Khemka added.

The markets witnessed intense selling pressure today from FIIs which the DIIs were not able to match with their purchases.

The rising inflation is inducing the Fed to taper bond purchases and implement an early hike in interest rates even before it concludes the tapering of bond purchase. These developments have strengthened the US dollar to a certain extent, and also prompted exit from emerging markets by FPIs.

“As COVID risks rise, the dollar continues to strengthen, foreign investors started moving their money back to the US”, commented Mohit Nigam, Head – PMS at Hem Securities.

The Volatility index was up by 24.85% and except Nifty Pharma and Nifty Healthcare, all other sectoral indices ended in the red. Top gainers included Cipla – Rs 965.0 (+7.23%), Dr. Reddy’s – Rs 4,750.0 (+3.45%) and Divi’s Labs – Rs 4,940.0 (+2.92%) while JSW Steel – Rs 630.0 (-7.48%), Tata Motors – Rs 459.4 (-6.77%) and Hindalco – Rs 417.7 (-6.57%) were the biggest losers.

Technical View

“Technically, Nifty is continuing its southward journey following the breakdown of a bearish head and shoulder formation and it has also slipped below its critical support of 100-DMA of 17,088 with bearish Marubozu candlestick formation that has opened the door for further weakness towards 16,700/16,400 levels”, said Parth Nyati, Founder, Tradingo.

On the upside, now 17,100 will act as an immediate hurdle while 17,350-17,400 will be the next critical resistance zone, Nyati added.

Giving technical views on Bank Nifty, Nyati suggested that, Bank Nifty is underperforming and witnessing a vertical fall. It is trading near its 200-DMA which is currently placed at 35,700 level and is a very crucial level. Below this, it is vulnerable for further weakness towards 35,000/34,000 levels. On the upside, 37,000 will act as a strong resistance.

In such a scenario, Khemka of Motilal Oswal suggests, “it is wise to grab the opportunity and invest in stocks that are backed by strong fundamentals and sound management”. Blue-chip stocks which act as safe havens for investors provide good entry points at lower levels to invest from long-term perspective. Defensive sector stocks can also be looked as a buying option, the market expert added.

Internet Explorer Channel Network
Asia's Tech News Daily
News Related

OTHER NEWS

Paytm claws back after slipping below Rs 1,000 for the first time since listing

Shares of Paytm owner One97 Communications on Friday recovered losses after slipping below Rs 1,000 for the first time since listing. The stock, declining for the ninth consecutive session, hit a record ... Read more »

These 17 smallcap stocks gained 20-47% as market jumped over 2% in last week

The market continued to be “happy” in the new year, gaining ,more than 2 percent in the week ended January 14 amid buying seen across the sectors led by power, realty sectors and mid-smallcap ... Read more »

Indian rupee falls 19 paise to 74.09 against US dollar in early trade

Representative image The rupee declined by 19 paise to 74.09 against the US dollar in opening trade on Friday, as muted domestic equities and elevated crude oil prices weighed on ... Read more »

Moneycontrol Pro Panorama | Tech stocks feel the squeeze. Time to rewire?

Dear Reader, The Panorama newsletter is sent to Moneycontrol Pro subscribers on market days. It offers easy access to stories published on Moneycontrol Pro and gives a little extra by ... Read more »

Gold Prices Today: Yellow metal likely to remain volatile but might hold on to support levels; resistance at Rs 47,900

Gold and silver opened the day on a positive note on January 14, with both metals having a gap-up opening of more than Rs 100. On Multi-Commodity Exchange (MCX) gold ... Read more »

Taking Stock | Market ends flat; Sensex falls 12 pts, Nifty settles just above 18,250

There were 18 declines compared to 12 advances on the BSE Sensex. The Indian stock market ended the volatile session on a flat note on January 14. After a gap-down ... Read more »

Top MF buy and sell - December report card

Equity-oriented mutual funds witnessed a record inflow of Rs 25,077 crore in December, which was more than double compared to Rs 11,615 crore of inflow in November. The equity and ... Read more »

HCL Technologies falls nearly 3% ahead of earnings announcement today

HCL Technologies’ share price fell nearly 3 percent intraday to Rs 1,296.95 ahead of the firm’s December quarter earnings announcement today. Brokerages expect HCL Technologies to report four percent on-quarter growth ... Read more »

Gainers & Losers: 10 stocks that moved the most on January 14

Indian benchmark indices snapped 5-day gaining momentum and ended flat in the volatile session on January 14. At close, the Sensex was down 12.27 points or 0.02% at 61,223.03, and ... Read more »

Strong start for the markets: Trends to watch for short-term traders

In the first few trading sessions of the calendar year 2022, the benchmark Nifty has gained close to 5%. This rather sharp up move has surprised many market participants, considering ... Read more »

Why AGS Transact Tech dropped 68% in unlisted market

AGS Transact Technologies IPO Aggressive investors wanting to beat the crowd in a hot market for initial public offerings (IPOs) have often grabbed shares on the unlisted market, also called ... Read more »

FOMO-driven euphoria hit investor sentiment; time to pick new-age players with strong basics

Indian indices continued their bullish stance as Nifty claimed the 18,000-mark. While the market has been buoyant since the start of the new year, it has certainly not been a ... Read more »

Moneycontrol Pro Weekender | Testing times 

Dear Reader, The World Bank’s flagship publication, ‘Global Economic Prospects’ says global growth will decelerate in 2022 and 2023 as the effects of the extraordinary stimulus, both monetary and fiscal, ... Read more »

Daily Voice | Budget should focus on driving efficiency in balance sheets, than hiking FPI in PSU banks, says Naveen Chandramohan of ITUS Capital

Naveen Chandramohan is the Founder & Fund Manager at ITUS Capital. Naveen Chandramohan, the Founder and Fund Manager at ITUS Capital, hopes the rationalisation of GST rates will happen but ... Read more »

Market gains over 2% despite weak data, rising Omicron cases; rupee gains

Market started the week gone by on a strong note and continued its weekly winning momentum for a fourth straight time. During the week gone by, the key benchmark indices crossed ... Read more »

Earnings to guide markets next week; inflation, pandemic key risks

NEW DELHI: Benchmark indices added another 2.5 per cent during the week gone by as India Inc started the earnings season with a bang giving hopes to investors that the ... Read more »

LG Energy Solution to raise 12.75 trillion won in Korea's largest-ever IPO

Yonhap LG Energy Solution Ltd. (LGES) is expected to raise 12.75 trillion won ($10.7 billion) this month in what will be Korea’s largest-ever initial public offering (IPO). South Korean battery ... Read more »

Daily Voice | Nifty can be at 20,000 by year-end, divestment and monetisation of PSUs should gain more traction now: Harshad Chetanwala of MyWealthGrowth

Harshad Chetanwala After gaining 24 percent in 2021, the markets are expected to remain strong in CY22, predominantly riding on robust growth and demand across sectors, says Harshad Chetanwala, co-founder ... Read more »

Tech View: Nifty50 forms bullish candle on weekly chart; bias remains positive

NEW DELHI: Nifty50 made a good recovery from low on Friday and erased almost all gains, as it ended up forming a bullish candle on the daily chart. With that, ... Read more »

Sensex, Nifty snap 5-day winning run amid rising inflation, worsening pandemic

NEW DELHI: After a wild move throughout the session, benchmark indices snapped their five-day winning streak on Friday, closing the week on a negative note. Rising inflation and a worsening ... Read more »

Australian sharemarket tumbles as tech stocks follow Nasdaq slump, finishes week 0.8pct lower

The Australian sharemarket sank firmly into the red following a Wall Street tumble, with the local tech sector by far the worst performer after the Nasdaq index snapped a three-session ... Read more »

Trade setup: Base looks buoyant; cautiously positive outlook advised

Typically, in a weekly options expiry dominated session, the market traded in a defined range before ending the day with a minor gain. The market saw a positive opening as ... Read more »

Tech View: Nifty50 shows signs of fatigue; exercise caution, say analysts

NEW DELHI: Nifty50 on Thursday traded in a narrow 108-point range for another session and closed where it opened, thus forming an indecisive Doji candle on the daily chart. The ... Read more »

Sensex rises for 5th straight day; pharma, metal stocks gain most

NEW DELHI: Benchmark indices managed to end in the green for the fifth consecutive day on Thursday as major IT companies positively surprised with Q3 numbers, setting the tone for ... Read more »

Last year's 3-bagger Sintex Ind's share price may drop to zero

NEW DELHI: It is rare for a stock’s price to hit zero. One stock that may join the club is Sintex Industries – a scrip that has jumped over 235 ... Read more »

Dolly Khanna exits multibagger Asahi Songwon in Dec quarter

NEW DELHI: Seasoned investor Dolly Khanna is no more a key shareholder in multibagger stock Asahi Songwon , suggesting she either exited the stock or cut her stake in the ... Read more »

Resources sector pushes ASX higher on back of stronger commodity prices, helped by positive US lead

The Australian sharemarket was in the green for the second straight day after a positive lead from Wall Street and as resources stocks rose on stronger commodity prices. The benchmark ... Read more »

Asian shares mixed as digest US CPI data

Asian shares have been mixed while the dollar slipped as global investors assessed that strong US inflation data was not worrying enough to change the Federal Reserve's already hawkish rates ... Read more »

Wall Street closes higher after CPI data

US stock indexes have risen after data showed that while US inflation was at its highest in decades, it largely met economists' expectations. That cooled some fears that the Federal ... Read more »

Trade setup: Risk-on mode to continue; metals, IT, financials to outperform

Indian equity markets refused to take a breather as benchmarks continued to surge, with Nifty ending yet another day on a strong note. Markets saw a positive start to the ... Read more »

Tech View: Narrow Nifty range suggest index vulnerable to profit taking

NEW DELHI: Nifty50 on Wednesday rose for the fourth straight day and, in the process, took out its immediate resistance of 18,200 level. The headline index formed a bullish candle ... Read more »

Taking Stock | Bull holds tight grip on D-St; Sensex gains 533 points, Nifty above 18,200

The market rally continued on the fourth straight session on January 12, with Nifty closing above 18,200 and Sensex above 61,000 level, led by the auto, realty, metal and power ... Read more »

Pinning hopes on India Inc, bulls drive Sensex, Nifty up for 4th day

NEW DELHI: Benchmark indices closed with gains for the eighth time in the last nine sessions on Wednesday, as buying continued on Dalal Street as investors believe India Inc will ... Read more »

ASX breaks two-day losing streak, boosted by commodity prices, positive US lead after ‘soothing' Fed comments

The Australian sharemarket broke a two-day losing streak after a positive lead from Wall Street and stronger commodity prices. The benchmark S&P/ASX200 index closed 0.66 per cent higher at 7438.9, ... Read more »

IBK to offer ETF trading of pension funds in first half of 2022

Getty Images By Lee Kyung-min Industrial Bank of Korea (IBK) will roll out a new product whereby customers will be able to include exchange-traded funds (ETFs) in their pension investment ... Read more »

Nifty by 2022-end may be where it is today, suggests Nomura's target

NEW DELHI: Nomura India is anticipating high volatility in the stock market in 2022, driven by changing expectations around macro factors such as interest rate increases by central banks and ... Read more »

KDB's attempt to sell life insurer embroiled in lawsuit

KDB Life Insurance headquarters in Seoul / Courtesy of KDB Life Insurance By Park Jae-hyuk The Korea Development Bank (KDB) has been embroiled in a lawsuit over its plan to ... Read more »

Sensex hits 61,000 as bulls take charge of D-Street; all eyes on TCS, Infy earnings

NEW DELHI: Benchmark indices opened higher in Wednesday’s trade, tracking strong gains in other Asian markets, as Fed Chair Jerome Powell sounded less hawkish in his testimony to US Congress ... Read more »

Daily Voice | Banks, Metals, IT among 6 sectors likely to report double-digit profit growth in Q3FY22, says Nimish Shah of Waterfield Advisors

Nimish Shah, Chief Investment Officer – listed investments at Waterfield Advisors Covid affected sectors such as the travel, housing and hospitality industries could see some support from the government in ... Read more »

Vodafone joins RBL Bank, Delta Corp, Indiabulls Housing Finance on F&O ban list of NSE

The list of stocks banned from trading in the futures and options segment has increased to four after these securities crossed 95 percent of the market-wide position limit. Vodafone Idea, which ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic