Market Closing:
Equity markets has their biggest single-day drop since early-June, tracking weakness in Asian peers and sustained selling among large cap financial names.
Nifty slipped nearly 2% (195 points) to close at 10607 as only three out of the 50 Nifty constituents managed to end the trading day with gains. Sell-off in banking stocks continued for second consecutive session.
The Nifty Bank index ended lower for the third straight day, ending 3% lower, which is its longest losing streak in two months.
The Bank Nifty has declined close to 1,500 points over the last three trading sessions.
Metals and Auto stocks were the other sectoral laggards, ending lower by 2.5% each.
IT and Realty index fell over 1% respectively. Pharma was the only outperformer, with the Nifty Pharma index ending 0.5% higher.
Midcap index ended 1.1% lower while the smallcap index declined 1.5%. The India Volatility Index ended higher for the third straight day, ending 5.7% higher at 26.7.
This was the biggest single-day gain for the Volatility Index in two months.
Global markets like Asian and European markets slipped 1-2% as tensions between the U.S. and China and worries over rising coronavirus cases weighed on sentiment. Banking and NBFC stocks slipped after the Global ratings agency Fitch said that recovery of non-banking financial institutions (NBFIs) in near-term is not probable as the sector continues to wrestle with the fallout from the Covid-19 pandemic. HDFC Bank slipped 2% to close at Rs1059.
Axis Bank declined 5% to close at Rs418. ICICI Bank, L&T Finance, Kotak Bank, Shriram Transport Finance, SBI , M&M Finance, LIC Housing declined 2-6%.
Bharti Airtel gained marginally to close at Rs589 (intra-day high of Rs596) after the news that the company is allying with Verizon Communications to offer group video calling service.
Reliance Industries declined 1% to close at Rs1917 while it has touched all time high of Rs1942. Company’s board meeting will be held tomorrow.
Mindtree slipped 3% to close at Rs978 after announced Q1 results.
Auto stocks like M&M, Maruti, TVS Motors, Hero Motocorp and Eicher Motors and Tata Motors slipped 2-4% on account of profit booking.
Metal stocks like Tata Steel, Hindalco, JSW Steel, Jindal Steel declined between 2-3% on account of profit booking.
Among the Pharma stocks, Dr Reddy advance 2% to close at Rs3983. The company has announced the launch of the Over-the-Counter Nicotine Polacrilex Lozenges, the store brand version of Nicorette Lozenges in the U.S.