Markets at 5-month low: Sensex erases 2,110 pts, Nifty slips 600 pts in 3 days
2 min read 13 Mar 2023, 05:39 PM ISTOn Monday, except for Tech Mahindra, all other major stocks on Sensex were in the red. IndusInd Bank, SBI, M&M, Infosys, Bajaj Finserv, and Axis Bank were the top losers. Heavyweight Reliance Industries also hit a new 52-week low before ending lower by 1.7%.
PremiumThe start of the week was a bloodbath for Indian markets on Monday as Sensex and Nifty plummeted by around 1.5% each. The sharp selloff in global cues dragged domestic equities after the US banks' failure saga. India's volatility index skyrocketed by nearly 21%, making it the largest single-day upside in a year. Due to the steep bearish tone, Indian benchmarks are at a five-month low. The benchmarks have been in red for three consecutive days.
Sensex closed at 58,237.85 down by 897.28 points or 1.52%. While Nifty 50 plunged by 258.60 points or 1.49% to end at 17,154.30.
In the broader market, on BSE, Midcap, and SmallCap indexes shed over 1.8% and 2% respectively.
Meanwhile, in terms of sectoral indices, banking stocks were the worst hit. BSE Bankex slipped by nearly 1,028 points or 2.24%. Nifty Bank shed 920.75 points or 2.27%.
All sectoral indices were in the red with a downside between 1% to 2%. Only the power sector saw a marginal downside. IT index on BSE dropped by nearly 359 points, while the Auto index dipped by 587 points, Capital Goods dropped by 529 points, and the Consumer durables index fell by 543 points.
Except for Tech Mahindra, all other major stocks on Sensex were in the red. IndusInd Bank, SBI, M&M, Infosys, Bajaj Finserv, and Axis Bank were the top losers. Heavyweight Reliance Industries also hit a new 52-week low before ending lower by 1.7%.
On markets performance, Ajit Mishra, VP - of Technical Research, Religare Broking said, "Markets started the week on a feeble note and lost nearly one and a half percent, in continuation to the prevailing trend. After the initial uptick, the Nifty index gradually drifted lower as the day progressed and finally settled at 17,154.30 levels. The selling pressure was widespread wherein banking, auto, and IT majors were beaten down badly. The broader indices too plunged sharply lower and lost nearly 2% each."
In three trading sessions, Sensex has nosedived by 2,110.24 points and Nifty 50 dropped by 600.1 points.
Going forward, Mishra said, "The move shows that participants are not comfortable, citing the US banking crisis and reducing positions, ignoring the news of the bailout. Banking and financials were acting as saviors earlier but the tone has changed completely now, which is further adding to their worries. We reiterate our negative view and eyeing the 17,000 level as immediate support in Nifty. Traders should align their positions accordingly."
For Tuesday's session, Rohan Shah-head technical analyst at Stoxbox said, "intraday traders can look for long opportunities only above the resistance level of 17,300 if it sustains for 15 minutes. Traders can look for fresh shorts only if nifty breaks the 17,090 level & remains below for 15 min to ensure short."
