BackWhy Sensex today fell over 1,000 points from day's high to end sharply lower
Financial stocks sold off on the back of a broader rise in bond yields in the US and Europe
PremiumAfter rising sharply in early trade, Indian markets fell today amid excessive volatility. The blue-chip NSE Nifty 50 index fell 0.95% to close at 15,030, after rising to 15,336 in early trade. The Sensex shed nearly 500 points to end at 50,792, after hitting 51,821 at day's high. The BSE midcap index fell 0.4% while the smallcap index ended mildly in the green.
Here are 10 things to know about today's market performance:
1) Financial stocks sold off on the back of a broader rise in bond yields in the U.S. and Europe. In Mumbai, the Nifty Bank Index fell 1.23%. ICICI Bank Ltd was among the top drags to the Nifty 50, shedding 2%.
2) "Indian markets failed to hold on to its strong start as rising bond yield in the US countered positive sentiments. All major sectoral indices belled the day in negative terrain . The US market has had a robust close yesterday taking cues from fall in the US unemployment rate and signing of the stimulus bill. However, Asian and European markets couldn’t maintain the optimism due to rising US bond yield ahead the Fed policy meeting next week," said Vinod Nair, Head of Research at Geojit Financial Services.
3) Rising covid cases in Maharashtra too kept bulls on the backfoot, said S Ranganathan, Head of Research at LKP Securities.
4) "We were unsuccessful in getting past 15,300 on a closing basis which was the resistance level for the Nifty. We turned sharply after touching that patch this morning. Hence we have re-entered the trading zone of between 14900-15300," said Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments.
5)"Unless we do not get past either level convincingly and on the backing of good volumes, the markets are going to continue trading in a lackluster fashion," he added.
6) Ajit Mishra, VP - Research, Religare Broking, says "Indian markets will react to the macro data - IIP and CPI inflation - due later in the day.
7) Besides, he added, global cues and COVID-19 related updates will also in focus. "Amid all, we reiterate our cautious view on markets until we see either side's decisive break in Nifty and suggest keeping a check on leveraged positive."
8) Rohit Singre, Senior Technical Analyst at LKP Securities, said: "Nifty managed to close a week above 15k mark with gains of half per cent and formed Doji candle pattern on weekly chart hinting uncertainty in the market at the upper range. On the downside index has strong and good support at 14850 zone any decisive break below said levels can show some more pressure towards 14500 zone on an immediate basis. The strong hurdle is still at 15250 zone only above that level we may see some stability."
9) Elsewhere, IDBI Bank Ltd closed 9.8% higher. Reserve Bank said on Wednesday it would take the state-run lender out of its corrective action list.
10) The rupee however extended its gaining streak for the third day in a row. The Indian currency advanced 12 paise to close at 72.79 against the US dollar today amid some easing of crude oil prices.
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