Sensex plunges over 500 points, Nifty goes below 11,800. Key levels to watch now2 min read . Updated: 26 Oct 2020, 05:50 PM IST
- Reliance Industries, auto and metal stocks led the markets lower
Indian stock markets fell sharply today, dragged down by Reliance Industries after a Singapore arbitration panel put its deal for Future Group assets on hold. The NSE Nifty 50 index fell 1.36% to 11,767.75, while the S&P BSE Sensex plunged 540 points to 40,145.
After a flat opening, the benchmark gradually inched lower as the session progressed. The broader market indices also remained under pressure and ended lower in the range of 0.9-1.9%.
Reliance Industries fell 4% after Amazon.com Inc won an interim order in Singapore to pause Future Group's $3.38 billion asset sale to India's most valuable company.
Among sectors, The Nifty metals index fell as much as 4.57% and the Nifty Auto index skid as much as 3.6%
Motorcycle makers Hero Motocorp and Bajaj Auto fell 6.72% and 6%, respectively. Miner Hindalco fell about 5.6%.
Among gainers, private-sector lender Kotak Mahindra Bank was up about 2.7% after the company reported a September-quarter profit that beat estimates.
Here is what analysts said on today' market performance:
Ajit Mishra, VP - Research, Religare Broking Ltd
"The news of rising COVID cases across Europe and the US is haunting markets across the globe including ours. Besides, participants are hoping for some clarity over the US stimulus package before the US election. Amid all, domestic earnings announcements are further adding to the volatility. We feel it’s prudent to maintain positions on both sides in stocks despite the prevailing consolidation bias in Nifty."
Vinod Nair, Head of Research at Geojit Financial Services
"Volatility was expected as we are nearing the US election date. The prices are high which limits the capacity of the market to handle uncertainties though the final outcome of the election is unlikely to change the long-term trend of the global market. Rising covid cases in the US and Europe and delay in US stimulus has added worries. Indian markets are taking a correction from the recent rally which has factored a lot about a uptrend in earnings growth due to positive Q2 results. Indian indices are expected to remain weak in the near-term and will be driven by the trend of ongoing Q2 result and developments in the US."
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
"We threatened the lower end of the range by piercing 11750 on an intraday basis but the Nifty was quick to bounce back to close above it. If the level of 11700 is breached, we can slide down to targets closer to 11450-11500."
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
"The short term trend of Nifty seems to have reversed from the highs, but the near term trend status of the market remains range bound around 12000-11650 levels. The sharp follow-through weakness is not expected from here in the short term, but there is a possibility of an upside bounce emerging from here or from slightly lower levels. The crucial lower support is placed around 11650-11600 levels." (With Agency Inputs)