The BSE Sensex tanked 1,066 points, or 2.61 per cent, to 39,728, while Nifty plummeted around 291 points, or 2.43 per cent, to 11,680. Earlier, the benchmark equity indices advanced more than 7 per cent in the past 10 trading sessions.
Commenting on the fall, Gaurav Dua, SVP, Head Capital Market Strategy & Investments, Sharekhan by BNP Paribas, said, “Indian markets caved into global pressure today and has ended its 10-day winning streak. Globally, hopes of further stimulus in the US is fading away while the news of fresh lockdowns in Europe added to the weak sentiments across equities globally. The weak global cues seem to have triggered profit booking in India too with banks and IT stocks facing intense selling pressure.”
Here is what happened in Thursday’s session:
Most active counters
With a total traded quantity of 18.83 crore shares, Vodafone Idea emerged as the most active stock on the NSE in terms of volume. It was followed by Ashok Leyland (6.52 crore), Yes Bank (5.39 crore) and SBI (4.91 crore). On the other hand, Infosys (Rs 4996 crore), Reliance Industries (Rs 2,072 crore), TCS (Rs 1,828 crore) and HDFC Bank (Rs 1,687 crore) stood among most active in terms of value.
Who dragged my Sensex down
Barring Asian Paints (up 0.32 per cent), other 29 components in the Sensex settled in the red with Bajaj Finance falling the most – 4.68 per cent. Tech Mahindra, IndusInd Bank, ICICI Bank, State Bank of India, Reliance Industries and Bharti Airtel cracked between 3 per cent and 5 per cent.
VIX jumps 9%
The market’s fear gauge, India VIX, climbed 9.14 per cent to 22. Overall, the volatility barometer has cooled down nearly 74 per cent from its high of 83.61 hit on March 24.
Stocks that hit lower circuit limits
As many as 228 stocks hit their lower circuit limits set by BSE during the day. They included Nucleus Software, BLS International Services, Kwality, and Burnpur Cement, among others.
Stocks that gave ‘sell’ signals
Over 60 stocks crossed below the signal line on the MACD indicator giving out ‘sell’ signal. They included DLF, Tech Mahindra, Cipla, Lupin, Berger Paints, Havells India and InterGlobe Aviation, among others.
Among the sectoral indices on BSE, the Telecom index tanked the most 3.54 per cent. It was followed by Bankex (down 3.31 per cent), Energy (down 3.10 per cent) and Finance (down 2.86 per cent). Other indices also settled in the red. In the telecom space, Vodafone Idea, Bharti Infratel, Bharti Airtel and Sterlite Technologies declined between 3-5 per cent.
Infosys slips post Q2
Shares of IT major Infosys declined over 2 per cent despite it posting better-than-expected financial results for the quarter ended September 30. However, some analysts said the revised guidance still looks conservative and that one can see surprises in coming quarters.
Tata Motors hogged limelight
Ace investor Rakesh Jhunjhunwala held 1.29 per cent stake in auto major Tata Motors at the end of September quarter, making him one of the major minority shareholders in the company. Jhunjhunwala, who is also a key investor in other Tata Group firms such as Titan, Indian Hotels and Rallis India, held 4 crore shares in Tata Motors at the end of the September quarter, latest shareholding data showed on October 15. However, shares of the company closed 2.83 per cent down at Rs 127 amid heavy selling in the broader markets.
Stocks that hit 52-week highs
8K Miles, Akash Infra-Projects, Ambuja Cements, Asian Paints, Berger Paints, Ice Maker Refrigeration, Infosys, JK Cement and Lakshmi Machine Works stood among 30 firms which scaled their new 52-week highs on the BSE.
Where is Nifty headed?
Nifty formed a Bearish Engulfing pattern on the daily chart. Moreover, on the weekly timeframe, the index is forming a Dark Cloud Cover pattern which signifies a weakening uptrend. Aditya Agarwala, Senior Technical Analyst, YES Securities, believes that a sustained trade below 11,700 will extend the correction to levels of 11,600-11,550.
“Technical indicator RSI has also turned down from overbought territory on the daily chart, suggesting a possible temporary pause in the uptrend. However, if bulls manage to come back after this carnage and take the index back above 11,750 then a short-covering rally could be possible. This may take the index higher to levels of 11,800-11,840,” he added.