Market Closing:
Benchmark indices witnessed their biggest single-day fall in over a month after tensions between India and China escalated yet again at the Ladakh border and SEBI has made it compulsory for the brokers to collect margin upfront from investors.
Nifty nosedived 260 points (down 2.2%) to close at 11387 while declined over 400 points (nearly 4%) from the intra-day high of 11794.
Bank Nifty slipped 3% but lost 1500 points or 7% from the high of 25233.
Selling pressure came in the market after the news that the Chinese troops violated an agreed border consensus along the so-called Line of Actual Control in the Himalayas.
Moreover, new margin norms by the SEBI as the upfront margin will be required in cash segment while in the existing system, investors didn’t have to pay upfront margin in the cash segment which has also negative impacted for sell off in the market.
There was all round selling in the market. Auto, Banking, Metal, NBFC, Pharma and Cement stocks were major losers today.
Market breadth turned strong in favour of bears as Nifty 500 stocks advance decline ratio stood at 1:9. The volatility index (India VIX) jumed by 20% to 22.83 levels.
Reliance declined around 2% to close at Rs2081 while it has touched intra-day high of 2174. The much awaited deal between Reliance Retail & Future Group finally took place over the weekend. Future Group to sell its retail, wholesale, logistics and warehousing assets to Reliance Industries' retail arm Reliance Retail, at a value of Rs 27,513cr.
Future Enterprises and Future Consumers locked 5% upper circuit and Future Retail hits 20% upper circuit.
Banking stocks like SBI slipped around 6% to close at Rs212 while it has touched an intra-day high of 231.55.
ICICI Bank, Bajaj Finance, Shriram Transport, Axis Bank, Kotak Bank declined 4-7%.
Metal stocks like Hindalco slipped over 4% to close at Rs185. Tata Steel, Jindal Steel and JSW Steel shed 3-6%.
Auto stocks like Maruti declined 4% to close at Rs6840. Tomorrow, Auto players will announce August monthly sales data. M&M, Bajaj Auto, Escorts and Hero Motocorp declined between 2-5%.