Home / Markets / Stock Markets /  Why Sensex today suffered its biggest loss in 15 sessions

Indian markets ended lower today, weighed down by losses in banking shares and heavyweight Reliance Industries. Analysts attributed today's fall to profit-taking after the recent run-up and weak European markets. The Sensex ended 414 points lower at 33,956, - it biggest drop in 15 sessions - giving up strong intra-day gains of about 450 points. The Nifty closed down 1.2% at 10,046. Earlier in the session, the indexes had risen more than 1% each as shopping malls and restaurants reopened this week following the world's biggest coronavirus lockdown, even as the number of new cases climbed steeply.

Axis Bank, RIL, ICICI Bank, HDFC Bank and Bharti Airtel were among the top losers today, falling between 2% and 3%. The Nifty bank index fell 2% to 20,724.

The Nifty Pharma Index was the best performer for the day, closing 1.8% higher.

Here is what analysts said on today's market action:

Ajit Mishra, VP - Research, Religare Broking Ltd.

"Markets lost over a percent in a volatile trading session, tracking weak global cues. After opening on a flat note, the index gradually inched higher but weakness in the European markets triggered a sharp decline in the latter half. Finally, the Nifty index ended near to 10,050 levels, almost at the day’s low. On the sector front, all the indices, barring healthcare and realty, witnessed selling pressure and ended in the red with banks, telecom and energy being the top losers.

"Since our markets are currently dancing to the global tunes, the outcome of the US Fed meet and performance of the global markets would be closely watched. We may see further profit-taking in the index and 9950-9850 zone would act as a cushion. Traders should prefer hedged positions and maintain their focus on stock selection."

Sumeet Bagadia, Executive Director, Choice Broking

"At present level, downside support comes at 9890 while upside resistance comes at 10245 levels. Going ahead, the market will track the development related to reopening of the economy, coronavirus situation in the country and global developments."

Vinod Nair, Head of Research at Geojit Financial Services.

"Nifty again witnessed profit booking and resistance at its 100-DMA levels, which is around 10300 and has been a crucial level for the index. The indices finally ended down by 1.3%. Banking index was the top sectoral loser and bluechip private banks contributed most to the losses in the benchmark indices. Our markets also seem to be driven by global cues and European markets opening in the red had an impact on our markets. US FOMC announcements tomorrow can have a bearing on the global markets."

Vishal Wagh, Research Head, Bonanza Portolio

"Going forward, 9940 will work as the last hope for bulls, and 10325 will work as resistance for Nifty. Whereas, Bank Nifty will find support around 20,300 below which a stiff fall can be seen and resistance near to 21,680."

Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities

“The level of 10,300 acted as a major barrier. The market slumped mainly due to sudden weakness in global markets and a surge in dollar index. Worldwide investors are turning cautious on equity as the past rise was significant and uninterrupted. We are also witnessing a similar trend in our markets. However, if the market defends the level of 9940 then it would be positive for the market. Buying is advisable if market drops below the level of 9940 and recovers back. On the higher side, the level of 10170 would be a major hurdle."

(With Agency Inputs)

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