Sensex today ends record-breaking streak with sharp fall. What analysts say2 min read . Updated: 19 Nov 2020, 05:57 PM IST
- Banking stocks, which had outperformed sharply this month, fell sharply today
- The Nifty Bank index fell about 3% today
Indian stock markets fell sharply today on profit-booking from recent highs, as investors turned cautious. The S&P BSE Sensex closed down 580 points while NSE Nifty 50 Index fell 1.3%. Global stocks were mostly lower today amid anxiety over the economic fallout from rising coronavirus infections in the United States and Europe.
Banking stocks, which had outperformed sharply this month, fell sharply today, dragged down by heavyweight banking and financial stocks, including HDFC Bank, ICICI Bank, HDFC and Axis Bank, which shed between 2% and 4%.
The Nifty bank index, which had climbed nearly 25% this month up to Wednesday, closed 2.85% lower. It had risen in 11 of the last 12 sessions.
A rally in automotive stocks, which had gained for 11 straight sessions amid signs of improving vehicle sales during India's festive season, also paused and the Nifty auto index fell 0.67%.
SpiceJet, a Boeing customer, jumped 12.2% after the United States lifted a 20-month-old flight ban on the 737 MAX.
Here is what analysts said on today's market performance:
Deepak Jasani, Head of Retail Research, HDFC Securities
"Volumes on the NSE were the highest in six days. Nifty has formed a triple top in the near term over the past three days in the 12934-12963 band. For the upmove to continue it would be necessary to breach this band. On downmoves 12607-12770 could offer support. There is a slight damage to the bullish sentiment in the markets. In case we do not get another negative trigger soon, we could recover from this setback."
Vinod Nair, Head of Research at Geojit Financial services
"The increasing virus infections raised fears of additional restrictions and considering its impact on global economic activity, global market sentiments turned negative. This was in spite of the optimism surrounding the advanced stages of vaccine development. We can expect short term volatility in the markets and investors are advised to remain cautious."
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
"After a gap-down, the Nifty turned positive but was unable to sustain that for very long. It went back into negative territory but has not broken the support of 12500 which means the trend continues to remain bullish. 13100 still remains an open target which the index can achieve by the end of the November series."
Ruchit Jain of Angel Broking
"13000 now becomes the sturdy wall for Nifty to surpass. From a day trading or short term trading perspective, such corrections provide opportunities on both the sides of the trade and thus, traders should look out for such trading opportunities and have a proper exit strategy as well. However, we are still witnessing some good price volume action in the broader markets and hence, any declines should provide a good entry points for positional traders to accumulate shares on dips."