Street was expecting additional stimulus measures from the US central bank, something on the lines of corporate bond buying but the Fed just reiterated its stance to support the economy by keeping the rates low.
NEW DELHI: Sentiments on Dalal Street were hurt by simmering tensions on the China-India border while disappointment from the US Fed also added to the plight as domestic equity indices snapped two-day winning run.
Street was expecting additional stimulus measures from the US central bank, something on the lines of corporate bond buying but the Fed just reiterated its stance to support the economy by keeping the rates low.
The 30-share pack Sensex fell 323 point or 0.82 per cent to 38,980, sliding below the 39,000 level. Its broader peer NSE Nifty slipped 88 points or 0.76 per cent to 11,516. India VIX, the measure of volatility in the market, advanced 2.12 per cent to 10.07.
"Indian markets reacted in sync with global markets, after the US Fed reserve failed to keep up with the expectations of the investors. In spite of pledging to keep interest rates low, markets were disappointed on the lack of further inputs or immediate stimulus measures. Continued border tensions with China, also worried Indian markets,” said Vinod Nair, Head of Research at Geojit Financial Services.
Market at a glance:
Happiest Minds up 123.08% on debut, closes the day at Rs 371.50
RIL, TCS biggest drags on Sensex; IT names provide some support
NIfty Pharma top sectoral gainer; banking indices drop over 1%
Nifty Midcap snaps five-day rally, smallcaps fall for second day
Dr Reddy’s gains further 4% on deal to bring Russian vaccine to India
148 stocks hit 52-week highs: Coforge, Deepak Nitrate, Infosys, Ipca Labs, Lupin, Mphasis, Mindtree and SRF top names
India is a hot market; gold and silver will hit fresh record highs, says Jim Rogers
With Federal Reserve policy meet over, focus now shifts to vaccine development. Meanwhile, resolution of the border row between India and China is also crucial as any adverse news will induce volatility.
Among bluechip names, Dr Reddy’s Labs was the top gainer for the second day in a row, rising 4.22 per cent to Rs 4,823. HCL Technologies, Zee Entertainment, Infosys, Maruti Suzuki and Hero Mot were among other gainers.
Hindalco was the biggest loser among Nifty stocks, falling 4.33 per cent to Rs 175.85. Tata Motors, Shree Cements, Bajaj Finserv, Adani Ports, Bharti Infratel and Power Grid were among other major losers in the pack.
Agencies
Top 5 Nifty gainers & losers
Activity in the broader market was also subdued yet they performed better than their headline peers.
Nifty Smallcap drifted 0.48 per cent lower, marking the second straight session in the red while Nifty Midcap dipped 0.25 per cent, snapping five-day winning streak.
Apollo Hospitals, Apollo Tyres, Mphasis, Laurus Labs, TV18 Broadcast and Sonata Software were among the top gainers from mid and smallcap segment, rising in the range of 4-6 per cent.
On the other hand, Trent, Edelweiss Financial Services, CESC, GMM Pfaudler, Aegis Chemicals and IndiaMART InterMESH were among the major loser from broader market space, dropping 3-7 per cent.
Nifty Pharma, which was the biggest gainer among sectoral indices, advanced for the third straight day registering a 0.39 per cent gains. It was closely followed by Nifty Media. Nifty Bank, Nifty Realty, Nifty PSU Bank, Nifty Financial Services each fell over 1 per cent.
"Traders should maintain their focus on the sectors which are attracting buying. IT and pharma are currently leading the pack and thistrend is likely to continue. On the flip side, apart from banks, we may see profit-taking in select metal and auto names."
— Ajit Mishra, VP - Research, Religare Broking
Market breadth was in favour of the losers with 1,153 stocks ending in the green while 1,574 names closed with cuts. As many as 148 securities hit 52-week highs, mostly from the mid and smallcap space. Meanwhile, 54 names hit 52-week lows, mostly from the microcap space. About 290 stocks hit upper circuit limit and 246 lower circuit limit.
European markets were also trading with cuts. UK’s FTSE was down 0.73 per cent while France’ CAC and Germany’s DAX fell 0.68 per cent and 0.59 per cent, respectively. All Asian markets also closed with losses, with Hong Kong and South Korea dropping over a per cent each. Let’s prepare for tomorrow:
Tensions at LAC: Amid reports that deployment at LAC could go into winters, action by both countries will be keenly watched.
FX reserves: RBI will release its forex reserve data for the week ending Sept 11 on Friday, which will tracked by traders active in currency markets.
Agencies
Get Unlimited Access to The Economic Times
