Mumbai: It was a bad start to the week on Monday, the market saw biggest one-day fall since September 2011 led by huge shorts build up and unwinding of long positions. UP election results expected on March 6 and spike in crude oil prices to 10-month high may have deteriorated investors' sentiment. The fall was not only restricted to largecaps but also to broader markets, which tanked more than 3 per cent.
Indian equities underperformed global peers on Monday. The Sensex fell 477.82 points or 2.67 per cent, to close at 17,445.75 led by selling in 28 stocks.
Meanwhile, the Nifty lost 148.10 points or 2.73 per cent to 5,281.20, extending from previous week's 2 per cent loss. European markets were down 0.7-1 per cent while the Dow Jones futures dropped over 50 points.
Ambareesh Baliga, COO of Way2Wealth warns crude oil prices, election results and monetary policy are worrying the market more.
"Oil prices will have a bearing on the monetary policy. It is possible that there could be a rethink of rate cut in case oil going beyond $ 130 per barrel or towards $ 140 per barrel. At the same time these election results, which is quite uncertain. The market has been expecting a good show from Congress and the SP and them coming together, In case that does not happen then it could be a negative for the markets," he reasoned.
According to him, the market could have a stop at about 5200 on the Nifty.
All BSE sectoral indices closed in a negative terrain barring FMCG. Rate sensitives took huge beating as rate cuts by RBI may be postponed if crude oil prices keep rising.
Brent crude touched $ 125.5 a barrel on Friday, but it saw some correction today. Brent crude was trading at $ 123.92 a barrel, down 1.24 per cent and NYMEX crude fell 1.2 per cent to $ 108.46/barrel.
Shares of Sesa Goa topped the selling list, falling 10.5 per cent after London listed metals and mining company Vedanta Resources approved merger of Sesa Goa and Sterlite Industries on Saturday. The new company called Sesa Sterlite. Cairn India fell 0.9 per cent and Sterlite Industries lost 2.5 per cent, which were up in early trade.
Realty and Metal indices were down 5 per cent. Power, Bank, Capital Goods, Auto and Oil & Gas indices tanked 3-4 per cent.
Index heavyweights Reliance and ICICI Bank were down 4.8 per cent each. L&T and SBI plunged 3.6 per cent; BHEL was down nearly 5 per cent.
Infosys, HDFC, HDFC Bank, TCS and ONGC plummeted 1-2 per cent. Tata Steel and Hero Motocorp tumbled around 7 per cent.
However, ITC outperformed other largecaps, rising 1.4 per cent.
Declining shares outnumbered advancing by 2213 to 637 on the BSE.
Comments
0 comment