Sensex, Nifty Post Biggest Single-Day Drop Since May

India's equity markets witnessed their biggest single-day drop in seven months as a new strain of Covid-19 in parts of the United Kingdom dampened investor sentiment.

The S&P BSE Sensex ended 3% or over 1,400 points lower at 45,553. However, it managed to end 600 points higher than the lowest point of the day. The NSE Nifty 50 index too ended 3.1% lower, declining over 400 points to end at 13,328. The index managed to end 200 points higher from its day's low of 13,131.

All the constituents of the 50-stock gauge ended with losses. Tata Motors (down 9.5%) and PSUs like ONGC (down 9.4%), GAIL (down 8.4%), Indian Oil (down 7.4%) and BPCL (down 6.2%) were among the top laggards in today's session.

Both the benchmark indices witnessed a heavy correction after gaining for seven weeks in a row.

All sectoral indices ended lower. The losses were led by the PSU Bank index which fell over 7% and by the Media index which declined over 6.5%. The Metal index too fell 6% in today's session. The Nifty I.T. and Nifty Pharma indices, which were outperforming the indices through most parts of the trading day too gave up gains to decline 2% and 4% respectively.

Other indices like the Realty index fell over 5% while the Auto index too saw declines of a similar quantum.

Broader markets underperformed the benchmarks in today's session. Both Nifty Midcap and Nifty Smallcap index fell over 5%.

India Volatility Index ended 27% higher to close above the mark of 20 for the first time in 13 trading sessions. The gauge ended at 23.65.

1,687 stocks on the NSE ended with losses while 254 managed to buck the trend and close with gains.

Indian equity markets opened the truncated week with modest losses after seven straight week of gains.

The S&P BSE Sensex opened 28 points lower at 46,932 while the NSE Nifty 50 index opened 18 points lower at 13,741.

Among the sectoral indices, the PSU Bank index has opened 1.3% lower and is the top laggard. The Nifty Metal index too is down 0.9% at the start of trade.

Other indices like the Nifty Bank and Nifty Auto are down 0.4% while the Realty index is trading with losses of 0.6%.

Broader markets too have opened little changed in today's session. The Midcap index is trading 0.3% lower while the Smallcap index is unchanged.

780 stocks on the NSE have opened with gains while 743 are trading with losses.

Good Morning!

Indian equity indices gained for seven straight weeks, their longest such run since April 2019.

But as the benchmarks enter a week curtailed by the Christmas holiday, futures are indicating a negative bias at the opening of the trade. The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, fell 0.4% to 13,730 as of 7:55 a.m. on Monday.

Several companies, including Reliance Industries Ltd., will be in focus today. Colgate-Palmolive (India) Ltd. and Godrej Consumer Products Ltd. may react to their analyst day commentary. The Rs 300-crore initial public offering of Antony Waste Handling Cell will also open for subscription.

Steel Authority of India Ltd. has entered the F&O ban, along with Canara Bank, Punjab National Bank and Sun TV.

Globally, Asian markets are trading with losses this morning with benchmarks in Japan and Australia drifting lower. Futures on the Dow Jones are little changed. The index fell 0.4% on Friday.

West Texas Intermediate crude fell 2.6% to $47.81 per barrel, while gold was up 1% to $1,897.67/Oz.

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