Sensex, Nifty Log Second Worst Day In Eight Months
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India's stock benchmarks tumbled in trade to log the second worst day in eight months, as concerns over omicron variant, rating downgrade by Morgan Stanley and RBI's plan to drain liquidity sapped sentiment.
The S&P BSE Sensex shed 2.09% to 55,822.01. The 30-stock gauge fell as much as 3.30% in intraday trade, the steepest decline in eight months. The NSE Nifty 50 index also slipped by similar magnitude to close at 16,614.20. The 50-stock gauge fell 3.39% in intraday trade to slip before 16,500. This is the first time in nearly four months since August 26 the Nifty closed below 16,700. Bharat Petroleum Corp. had the largest drop, falling 6.4%. Today, 47 of 50 shares fell, while 3 rose.
The broader indices underperformed their larger peers with both the S&P BSE MidCap and S&P BSE SmallCap shedding over 3%. All the 19 sectoral indices compiled by BSE Ltd. declined with S&P BSE Realty slipping nearly 5%. S&P BSE Oil and Gas, Metal shed nearly 4%.
The market breadth was skewed in the favour of bears. About 747 stocks advanced, 2,696 declined and 124 remained unchanged.
"The bias was downbeat from the beginning amid rising COVID cases globally due to the new variant. The benchmark remained under pressure in the first half as noticeable selling was witnessed across the board. However, rebound in the select index majors pared some losses in the latter half. The broader indices also traded under pressure and lost nearly 4% each", Ajit Mishra, VP - Reserach, Religare Broking Ltd. wrote in a note and reiterated cautious view on markets and suggested investors to focus more on risk management. "Investors, on the other hand, can start accumulating quality stocks selectively from a long term investment perspective. Nifty has the next major support at 16,300 levels", he added.
"Indian markets were battered on Monday, as sell-off continued across the spectrum on weak global cues. The short term structure of the market is still negative, but due to the oversold situation there is a strong possibility of a meaningful pullback rally. We are of the view that today's intraday low 16,400 would act as an immediate support for the market", Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd., wrote in a note. He added "a recovery-based rally could continue till 16,750-17,825. On the flip side, dismissal of 16,400 could possibly open another round of correction wave up to 16,320-16,250".
Steepest Intraday Decline In Over Eight Months
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Proposals of packaged foods maker Keventer Agro and vascular device manufacturer Sahajanand Medical Technologies also approved.
All three offers to be a combination of offer-for-sale and fresh issue of shares.
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Shares of Airtel have slipped nearly 8% during the streak while the Nifty 50 shed around 5%.
Over the 34 analysts tracking the company, 31 maintained 'buy', two maintained 'hold' and one maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 29.5%.