Domestic equity markets succumbed to selling pressure, a day after witnessing consolidation as market participants preferred winding up their position heading towards long weekend. As markets remains shut for trade on Monday on account of Ambedkar Jayanti and prevailing caution ahead of release of Index of Industrial Production (IIP) data later in the day and Consumer Price Inflation (CPI) data and most importantly earning season which kicks starts with the results of IT bellwether Infosys next week, added to the pessimistic milieu. On the macro-front, while consumer inflation rate is forecasted to have edged up slightly in March due to higher food prices,factory output in February is expected to have risen at its fastest annual pace in five months.
On the global front, Asia pacific shares and European market slumped as a sharp selloff in biotechnology and Internet companies on Wall Street overnight triggered a retreat from global stock markets. Losses at Dalal Street were led by stocks from Oil & Gas, Auto and Capital Goods counters, which were top losers of the session that were beaten blue in trade. Banking stocks witnessed beating after a RBI panel recommended a slew of measures, including potentially changing how lending rates are set for the sector, raising worries about overall profitability.
On the flip side, bourses’ losses were restricted on account of gains in Information Technology, Technology and Healthcare counters, which were the top gainers of the sessions. IT stocks which were dumped by traders in past couple of session, witnessed significant recovery by close of trade on bargain buying. The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 1516: 1291.
BSE Mid cap and Small cap indices ended higher by 0.10% and 0.66% respectively. On the BSE Sectoral front, ITup by 1.54%, Teck up by 1.21%, Healthcare up by 0.91%, Consumer Durables up by 0.40% and Realty up by 0.29%, were the only gainers, while Oil & Gas down by 1.28%, Auto down by 1.20%, Capital Goods down by 0.98%, Bankex down by 0.78% and PSU down by 0.35% were the top losers in the space.
Top gainers on the Sensex were Sun Pharma up by 1.87%, TCS up by 1.62%, Wipro up by 1.34%, Cipla up by 1.14% and Infosys up by 0.91%, while, Mahindra & Mahindra down by 2.08%, Gail India down by 2.06%,Hindalco down by 1.93%, SBI down by 1.83% and Hero MotoCorp down by 1.82% were the top losers in the index.
India VIX, a gauge for markets short term expectation of marginally gained 1.62% at 29.18 from its previous close of 28.71. The major gainers of the Nifty were HCL Tech up 3.35%, Ambuja Cements up by 2.33%, Sun Pharma up by 1.92%, Tech Mahindra up by 1.68% and TCS up by 1.66%. The key losers were IndusInd Bank down by 4.32%, SBI down by 2.06%, M&M down by 1.97%, Gail down by 1.90% and Reliance Industries down by 1.84%. European markets were trading in red; France’s CAC 40 was down 1.16%, UK’s FTSE 100 was down 1.27% and Germany’s DAX was down by 1.51%.
GLOBAL UPDATES:
European shares slid at the open to leave them set for their first weekly loss in a month, tracking steep falls in Asian and U.S. stocks as equities came under pressure globally. Both Dow and Nasdaq Future started on a negative note and were trading in red at this evening.
Technically, today RSI closed at 73, MACD was Positive at Signal line, India VIX was at 29~. Nifty closed below its immediate short term moving averages like 5 DMA (6773) but still above its 20 DMA (6640), 50DMA (6373) and 200 DMA (6080) which indicate that market is in the strong bull run but profit booking emerges at higher level, though trend is positive, one needs to be cautious at higher levels for any fresh position.
Markets closed on a Negative note with majority of the sectors closed on a negative note but Bse Oil& Gas was the worst performing sector today.
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