Sensex down 287 points at closing, Nifty below 17,700 amid volatility

Benchmark indices ended half a per cent lower on Thursday amid volatility.

Market opened on a weak note and remained volatile through the day due to settlement in monthly F&O contracts on the NSE. Indices extended losses during closing hours, dragged by banking, metal, IT and auto stocks.

The BSE Sensex closed at 59,126.36, down 286.91 points or 0.48 per cent. It hit an intraday high of 59,557.24 and a low of 59,019.28. The Nifty 50 closed at 17,618.15, down 93.15 points or 0.53 per cent. It hit an intraday high of 17,742.15 and a low of 17,585.35.

Breadth remains positive

However, the market breadth remained positive with as many as 1,842 stocks advancing on the BSE, as compared to 1,4321 stocks that were declined while 150 remained unchanged. Furthermore, 402 stocks hit the upper circuit as compared to the 157 stocks that were locked in the lower circuit.

Besides, 220 stocks touched a 52-week high level and 24 touched a 52-week low.

Vinod Nair, Head of Research at Geojit Financial Services, said, “Indian market opened on a flat note and slipped in the later half tracking weak global cues and fall in heavyweights. Worries over the US debt ceiling crisis and uptick in bond yield triggered further consolidation. The domestic market also got vigilant ahead of the release of August’s core sector output data.”

Bajaj Finance, Bajaj Finserv, Tata Motors NTPC and Sun Pharma were the top gainers on the Nifty 50 while Powergrid Asian Paints, Shree Cement, Axis Bank and Eicher Motor were the top laggards.

Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers, said, Indian markets started flat following mixed Asian markets cues as China official data shows unexpected contraction in factory activity.

“During the afternoon session markets scaled back to trade in green due to buying in consumer durables, realty and telecom stocks. Buying in frontline stocks such as Bajaj Finance, Sun Pharma and Bajaj Finserv were aiding sentiment, while selling in Asian Paints, Power Grid and Bajaj Auto kept the gains in the markets in check.”

“Traders were taking solace with Commerce and Industry Minister’s statement that India and the US should engage in a much bigger way and New Delhi is ready and willing to expand the economic partnership with America. He also called for setting an ambitious bilateral trade target of $1 trillion in the next 10 years. However, upside remain capped as finance ministry stated that India’s external debt rose modestly by 2.1 per cent year-on-year to $570 billion as of March-end 2021, notwithstanding the COVID-19 pandemic. Reserves to external debt ratio, however, increased to 101.2 per cent from 85.6 per cent during the same period, thereby consolidating the country’s position as a net creditor to the world,” added Solanki.

Realty, consumer durables in focus

On the sectoral front, financials, barring PSU Bank, auto, IT and metals dragged while realty, pharma and consumer durables gained.

Nifty Realty was up 1.47 per cent while Nifty Consumer Durables was up 1.04 per cent. Nifty Pharma and Nifty Healthcare Index were up 0.43 per cent and 0.37 per cent, respectively. Nifty PSU Bank closed 0.80 per cent higher.

Meanwhile, Nifty Bank and Nifty Financial Services were down 0.84 per cent and 0.37 per cent, respectively. Nifty Private Bank was down 0.76 per cent. Nifty Auto was down 0.54 per cent. Nifty IT was down 0.72 per cent while Nifty Metal closed 0.88 per cent lower.

Broader indices outperform

Broader indices closed in the green with midcaps and smallcaps outperforming the benchmarks.

Nifty Midcap 50 was up 0.25 per cent at closing while Nifty Smallcap 50 was up 0.61 per cent. The S&P BSE Midcap was up 0.33 per cent while the S&P BSE Smallcap was up 0.56 per cent.

The volatility index softened 2.30 per cent to 18.40.