– Maruti hikes prices as input costs rise
– Passenger vehicle exports from India rise 43%
– World Health Organisation Chief coming for 3-day Gujarat visit
– Hong Kong bans Air India flights till April 24
– SBI raises $500 mn through IFSC Gift City
Let’s take a quick glance at what happened on Dalal Street today.
Domestic equity markets witnessed a brutal selloff on Monday as the double whammy of a fresh rise in global crude oil prices and disappointing sets of earnings by index heavyweights Infosys and HDFC Bank sent stock prices tumbling.
Weakness in the US stock markets on Thursday also spilled over to their Indian counterparts on Monday, with a stronger dollar and higher US bond yields stoking fear of fresh overseas investment outflows from domestic stocks.
With the war between Russia and Ukraine intensifying over the weekend, domestic investors who were returning to markets after a four-day gap, found themselves faced with bad news on multiple fronts.
With stocks of Infosys and HDFC Bank together accounting for 18 per cent of the Nifty50 weight, the index came perilously close to falling below the 17,000 mark on Monday.
Based on market capitalisation of BSE listed stocks, Monday’s decline left investors poorer by Rs 2.5 lakh crore.
The BSE barometer Sensex plunged over 1,000 points to settle at 57,166.74. The index, which fell below the 57,000 mark during trade, has shed 2,280 points over the last five trading days.
Its broader peer, Nifty50, swung in a band of 170 points before settling 302 points lower at 17,173.65.
Broader markets fared better than their headline counterparts, with the BSE midcap and smallcap indices each losing 1 per cent. Fear gauge India VIX surged 9 per cent to 19.34.
20 of the 30 stocks on the BSE Sensex fell, with Infosys losing a whopping 7 per cent. HDFC and HDFC Bank both tumbled 5 per cent. Tech Mahindra also shed 5 per cent, while Wipro lost 4 per cent.
NTPC was the top gainer of the day, rising 6 per cent, followed by Tata Steel which climbed 2 per cent. Maruti, Titan and HUL added more than 1 per cent.
8 stocks hit upper circuits while 3 tested their lower circuit limits during the day. 118 stocks tested their 52-week highs during the session, whereas only 7 tested their 52-week lows.
We have Narendra Solanki from Anand Rathi Shares & Stock Brokers to share his views on the day’s action and the road ahead:
Welcome to the show sir:
1. What led to the bloodbath in markets today? After this selloff, when would be the right time for retail players to make an entry?
2. Earnings of heavyweights in IT and banks so far have disappointed markets. What is your outlook on these sectors?
We also caught up with Nirav Chheda of Nirmal Bang Securities Research to decode the technical charts for you.
1. The Nifty50 settled below the 17,200 level today. What do the technical charts suggest about it?
2. The decline in Bank Nifty was largely in line with the headline index. What is your outlook on the sector?
Asian stocks mostly ended with losses for the day. Markets in most parts of Europe were shut on account of the Easter holiday. US stock futures were down, signalling a weak start to US equities later in the day.
For the tech view, Q2 starts from 0:50 in the recording. For fundamental view, Answer 2 starts from 0:25 in the recording.
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!