Sensex, Nifty tank nearly 1.5 per cent
As profit-booking pressure set in from the start of the trading session, the domestic benchmark equity indices BSE Sensex and NSE Nifty 50 ended the week’s first trading session in negative territory with a fall of over
1 % each. The domestic benchmark indices opened negatively, aligning with weak Asian cues and remained under pressure throughout the session.
The 30-share Sensex shed 1272.07 points or 1.49 % to settle at 84,299.78. The index hit an intra-day low of 84,257.14. Nifty 50 also ended down 368.10 points or 1.41 % at 25,810.85 on Monday. The volatility index, INDIA VIX, surged by 6.89 %, settling at 12.79, indicating a rise in market volatility.
“The Nifty 50 index slipped below the 26,000 mark as profit-booking pressure set in from the start of the trading session, eventually closing near 25,800. This drop came after technical patterns signalled a pullback. The Nifty index had formed a bearish AB=CD pattern on the daily chart, and the Foreign Institutional Investors (FII) long-short ratio had peaked around 80-81 % last Friday, making this correction anticipated,”said Jigar S Patel, Senior Manager (Technical Research Analyst), Anand Rathi Shares and Stock Brokers.
According to Patel, sector-wise, banking, auto, and energy led the losses. Major names like Axis Bank, Reliance Industries and Hero MotoCorp were among the worst performers, with Hero MotoCorp tumbling by 4.00 % under heavy selling pressure. On the other hand, metal stocks showed resilience, with JSW Steel climbing 2.84 %, alongside gains from Tata Steel and Hindalco Industries. Besides geopolitical uncertainity, the major factors behind the fall include:
Investors eyeing China stocks
According to analysts, markets are moving into a consolidation phase with Foreign Institutional Investors (FIIs) having shifted their focus to the Chinese market following a series of economic stimulus measures announced by the Chinese government. Also, China’s central bank announced plans to lower mortgage rates for existing home loans, boosting investor confidence. Besides, according to brokers, FIIs are turning into sellers and shifting investment to better performing markets like China. However, some feels that it won’t much impact the Indian market.
