Bears maul Dalal Street: Sensex plunges 1,145 pts

"Rising economic restrictions from spike in virus cases and weak global cues hit the domestic market sentiment," said Vinod Nair, Head of Research at Geojit Financial Services

Mumbai: Spiralling lower for the fifth straight session, the Sensex plummeted 1,145 points while the Nifty crashed below the 14,700-level on Monday as across-the-board selling hammered stocks amid a prolonged spell of weakness in global equities. A surprisingly firm trend in the rupee was not enough to bolster investor sentiment, which has been hit by rising Covid-19 cases in multiple states and concerns on the valuation front, traders said.

Posting its biggest single-day slump in two months, the 30-share BSE Sensex tumbled 1,145.44 points or 2.25 per cent to close at 49,744.32. The broader NSE Nifty sank 306.05 points or 2.04 per cent to finish at 14,675.70. The Sensex has now lost 2,409.81 points in five sessions, while the Nifty has shed 639 points. Dr Reddy’s was the top loser in the Sensex pack on Monday, declining 4.77 per cent, followed by M&M, Tech Mahindra, IndusInd Bank, Axis Bank and TCS.

Only three index components finished in the green — ONGC, HDFC Bank and Kotak Bank, rising up to 1.14 per cent. World shares retreated amid rising bond yields and a rally in select commodities, with investors monitoring the progress of the $1.9 trillion Covid-19 relief bill in the US.

“Rising economic restrictions from spike in virus cases and weak global cues hit the domestic market sentiment. The rate of market fall was aggravated by a sharp rise in volatility, being a monthly F&O expiry week. FPI inflows which was leading the rally slowed down due to global vulnerabilities from rising bond yield and inflation. However, this is a buy on dip market, a short-term correction will trigger new buying, as economic fundamentals have improved, with more focus on industrial and cyclicals,” said Vinod Nair, Head of Research at Geojit Financial Services.

Sector-wise, BSE energy, realty, IT, teck, auto and capital goods indices skidded up to 2.92 per cent, while metal and basic materials ended with gains. Broader BSE midcap and smallcap indices fell up to 1.34 per cent. Elsewhere in Asia, bourses in Shanghai, Hong Kong and Seoul ended on a negative note, while Tokyo traded with gains. Stock exchanges in Europe were also trading in the red in mid-session deals.

Investors lose Rs 3.7 lakh crore

New Delhi: Investor wealth slumped by Rs 3.7 lakh crore on Monday, as the equity market recorded its biggest single-day fall in two months. At the close of trade, the total market capitalisation of BSE listed companies eroded by Rs 3,71,883.82 crore to Rs 2,00,26,498.14 crore. The total market capitalisation of BSE listed companies stood at Rs 2,03,98,381.96 crore on February 19 .

“The market failed to show resilience to stay above the Nifty 50 Index level of 14,750. While it is subject to further price action evolution, the technical factors shifted today to support a further correction in the future,” said Ashis Biswas, Head of Technical Research at CapitalVia Global Research Limited. Biswas further said any corrective wave down should find support around 14,500-14,300.

“Traders are refraining from building a new buying position until we witness a correction till 14,300-14,500 level. The volatility is observed to expand in today’s trading session indicating profit booking and stock distribution at a higher market level,” he noted.