Market Closing:
Nifty ended lower for the fifth day as indices gave up all their opening gains amid profit booking in pharma, Telecom and PSU bank stocks.
Index declined marginally while Bank Index managed to close on a positive territory in the highly volatile trend.
Nifty slipped by 22 points (0.2%) to close at 11132 while touching intra-day high of 11260 and low of 11024.
Bank Nifty gained 0.2% to 21178, touched low of 20821 and high of 21365.
Nifty nosedived 4% (472 points) in the five trading sessions, the longest run in 6 months.
Overnight gains in the US markets, a deal between KKR and Reliance Retail and India and China decision to not send more troops to the contested border supported the market but reemerging virus hotspots in Europe and rising worries over the pace of economic recovery were major drags.
European stocks bounded higher (up 2% each) with U.S. futures as equity markets built upward momentum after the September selloff cut valuations. India Vix gained 3% to 21.
Telecom stocks witnessed major losers today. Bharti Airtel and Vodafone Idea plunged after larger rival Reliance Jio Infocomm introduced a new tariff plan that aims at attracting subscribers from the two telecom service providers. Bharti Airtel fell as much as 8% to close at Rs434, most since March 23; Vodafone Idea declines 10% to close at Rs10.
Heavyweight, Reliance Industries witnessed a smart rally after the news that the US based private equity fund KKR to Invest $754mn for stake in Reliance Retail. Reliance Industries gained 1% to close at Rs2231 while it has touched an intraday high of Rs2276.
Pharma stocks like Sun Pharma declined 1% to close at Rs503 while touched intraday high of Rs521.
Sun Pharma’s Japanese subsidiary launches Ilumya in Japan used for the treatment of plaque psoriasis in adult patients. Cadila, Laurus Labs, Dr Reddy Cipla and Divi’s Labs declined 2-4%.
Banking stocks like Axis Bank gained 2% to close at Rs420 on account of bargain hunting. ICICI Bank, Kotak Bank, RBL Bank, SBI recovered partially from the intra-day low.