nifty: Market Watch: Decoding today’s market selloff & what to expect now | The Economic Times Podcast

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Welcome to ETMarkets Watch, the show about stocks, market trends and money-making ideas. I am Bhaskar Dutta and here are the top headlines at this hour.

– Ukraine says Russia launches new offensive

– Finance Minister pitches global framework for cryptos

– Job market shows highest growth in March

– India restarts tea, rice, other exports to Russia

– Domestic wheat prices up by 5-7%

– Govt procures wheat worth Rs 14,000 crore

Let’s take a quick glance at what happened on Dalal Street today.

Domestic equity markets fell for the fifth consecutive day, with the selling pressure intensifying at the fag end of trade as a fresh offensive by Russia against Ukraine dragged down European stocks.

Heavy selling pressure in index heavyweights Infosys, TCS and the HDFC twins also contributed to the selloff in equity markets on Tuesday. The four stocks combined account for nearly 30 per cent of the weightage of the Nifty50 index.

A jump in the US dollar index to its highest level in more than 2 years further worsened sentiment for equities, with investors fearing a resurgence of selling pressure from overseas investors.

Based on market capitalisation of BSE listed stocks, Tuesday’s selloff wiped out Rs 3.7 lakh crore worth of investor wealth.

The BSE barometer Sensex plunged 704 points to end at 56,463.15. The index, which swung in a band of 1455 points during the day, came perilously close to dipping below 56,000 during the day.

Its broader peer, the Nifty50, failed to hold above the 17,000 mark; settling 215 points lower at 16,958.65. The index has given up a whopping 716 points over the last five trading days.

Broader markets declined in line with the headline indices, with the BSE midcap and smallcap indices each shedding 1.2 per cent. Fear gauge India VIX rose 2.3 per cent to close at 19.78.

Only 4 out of the 30 stocks on the BSE Sensex gained. HDFC and HDFC Bank were the biggest losers, sliding 6 per cent and 4 per cent, respectively. Infosys lost 4 per cent, while ITC and tech Mahindra shed 3 per cent each.

Reliance led the gainers for the day with a 4 per cent rise followed by ICICI Bank which gained 1 per cent. SBI rose 0.4 per cent while Bajaj Finance climbed 0.3 per cent.

18 stocks hit upper circuit limits during the session, while 3 tested their lower circuit limits. 119 stocks tested their 52-week highs during the day, whereas 11 hit 52-week lows.

We have Vikas Jain from Reliance Securities to share his views on the day’s action and the road ahead:

Welcome to the show sir:

1. Markets fell sharply towards the end of trade, marking the 5th straight day of losses. When do you expect the selling to subside?

2. The US dollar rose to its highest levels in 2 years amid Fed rate hike expectations. How would our stock markets be affected?

We also caught up with Vaishali Parekh from Prabhudas Lilladher to decode the technical charts for you.

1. The Nifty50 settled below the 17,000 level. What do the technical charts suggest about it?

2. Bank Nifty has been showing weakness for some time now. What is your outlook?

Asian markets ended mixed for the day. Major European markets were trading with cuts in the first few hours of trade. Meanwhile, US stock futures were down, signalling a weak start to US equities later in the day.

That’s all for now. Do check out ETMarkets.com for all the news, market analysis, investment strategies and dozens of stock recommendations. Enjoy your evening. Bye Bye!



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