Sensex slips 1000 points from intra-day high due to lack of short covering

The Indian market failed to sustain intra-day gains amid a sharp rebound in global equity markets. The benchmark Sensex fell 992 points from its day’s high. Thus, short sellers anywhere in the market did not show any concern about their position. The benchmark Sensex was down 137 points at 52,794 and Nifty was down 26 […]
 


Sensex slips 1000 points from intra-day high due to lack of short covering

The Indian market failed to sustain intra-day gains amid a sharp rebound in global equity markets. The benchmark Sensex fell 992 points from its day’s high. Thus, short sellers anywhere in the market did not show any concern about their position. The benchmark Sensex was down 137 points at 52,794 and Nifty was down 26 points at 15,782. Volatility index Nifty Wax fell 3.26 per cent to end at 23.48. Out of 50 component counters of Nifty, 25 were positive while 25 were negative. While under-heading in the broader market, the accumulation was evident behind the bargain hunt.

The Indian market opened on a positive note with global competition in the last trading session of the week. Both the benchmarks were trading with a correction of more than one per cent at a time. Nifty was trading at 16,084 at one time crossing the level of 16,000. However, amazing sales were seen in the market. Banking stocks fell especially as SBI’s results fell short of market expectations. After which the market fell and entered the red zone. As well as looking at a negative closer at the end. Talking about the sectoral performance, selling in the metal was increasing. Nifty Metal fell over 2 per cent. Hindalco was the biggest loser with 4.4 per cent. The stock has shed up to 40 per cent from its past one-and-a-half-month high. JSW Steel fell 4% to Rs. Closed at 600 level. SBI fell 3.9 per cent on the back of the results.

NTPC, ICICI Bank, Bharti Airtel, Axis Bank and Maruti Suzuki were also down over 2 per cent. Tata Motors, on the other hand, posted the best correction of 8.6 per cent at Rs. 400 surface jumps. Behind which Nifty Auto Index showed the best correction with 2.44%. Nifty Firma was up 1.65 per cent and the FMCG index was up 1.84 per cent. Pharma counters were also showing strength. Sun Pharma was second among the Nifty counters with a gain of 3.82 per cent. M&M, HUL, ITC, UPL, Titan Company, Eicher Motors were suggesting a correction of more than 2 per cent.

In the Nifty derivatives segment, RBL Bank jumped 9 per cent. Apart from this, IGL was up 8 per cent, MRF 7 per cent, TVS Motor 5.4 per cent, Strides Pharma 5.2 per cent, IRCTC 5 per cent and Can Fin Humes by 5 per cent. On the other hand, GNFC registered a further decline of 9 per cent. Indus Towers was down 9 per cent, Oracle Financial Services 8 per cent, Honeywell Automation 8 per cent, Vedanta 7 per cent and Chambal Fertilizers 6 per cent. There are signs of bottom fishing in the broader market. Out of 3472 traded counters on BSE, 2166 counters indicated positive closing. While 1169 counters turned negative. Thus a reduction ratio in one counter was observed as compared to an improvement in about two counters. After four consecutive sessions, negative market breadth was followed by positive market breadth.

However, market analysts have urged retail investors to stay away from midcaps and smallcaps for the time being and focus on bluechip largecaps. According to him, large-caps are likely to improve significantly in the next quarter. Only then can a follow-up improvement be seen in mid- and small-caps.