Bears kept a grip on the market as benchmarks closed down more than 1% on Monday.
The market saw a gap down open amid weak global indices. The indices extended their losses throughout the day, indicating widespread selling.
The BSE Sensex closed at 56,579.89, down 617.26 points or 1.08%. It recorded an intraday high of 56,875.65 and a low of 56,356.87. The Nifty 50 closed at 16,953.95, down 218.00 points or 1.27%. It recorded an intraday high of 17,054.30 and a low of 16,888.70.
Nearly 2,500 shares fall
The breadth of the market aided the declines, with 2,494 shares falling on BSE versus 1,037 rising, while 143 were unchanged. In addition, eight stocks reached the upper circuit against four stocks stuck in the lower circuit. Additionally, 177 stocks hit a 52-week high and 23 hit a 52-week low.
The volatility index rose 15.82% to 21.26.
Bajaj Auto, HDFC Bank, ICICI Bank, Axis Bank and HDFC were the main winners of the Nifty 50, while Coal India, BPCL, Tata Steel, SBI Life and Hindalco were the main losers.
Global markets weakened as U.S. markets suffered losses following increasingly hawkish messages from the Fed, with U.S. Federal Reserve Chairman Jerome Powell not backing down from his rate hike stance aggressive this year.
On the home front, analysts expect volatility to continue this week ahead of the scheduled April expiration of derivatives contracts.
Vinod Nair, Head of Research at Geojit Financial Services, said: “Global markets were painted red due to below-normal earnings results, adding further concerns to high inflation, oil prices, the uncertainties of the war and the problems of supply. Oil prices fell on fears of lower demand due to a prolonged Covid lockdown in China. Continued FII sales in India along with other global uncertainties favored a short-term bearish trend.
Narendra Solanki, Head-Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers said: “Indian equity benchmarks opened in the red on weak trading in Asian markets amid a sell-off. triggered by aggressive US Fed tightening and China Covid fears. .”
“During the afternoon session, markets failed to erase losses and traded at the low of the day as sentiment was fragile, the crude oil import bill of with India nearly doubling to $119 billion in the financial year ending March 31 as energy prices soared globally on the return of demand and the war in Ukraine.Additional pressure came as a private report cut India’s economic growth forecast for 2022-2023 by 70 basis points to 7%, citing slowing global growth due to high commodity prices and weak local demand due to rising energy prices, inflationary pressures and a difficult economic labor market,” Solanki added.
On the sector front, all indices except Nifty Bank and Nifty Private Bank closed in the red.
Nifty Bank and Nifty Private Bank each closed up 0.10%. Meanwhile, Nifty Realty was down almost 4%. Nifty Metal was down almost 3% at the close. Nifty Oil & Gas, Nifty IT, Nifty Pharma and Nifty Healthcare Index each fell more than 2%.
An expanded market under pressure
The broader indices closed in the red under pressure.
The Nifty Midcap 50 was down 2.15%, while the Nifty Smallcap 50 was down 2.18 per cert. The S&P BSE Midcap was down 1.86%, while the S&P BSE Smallcap was down 1.88%.
April 25, 2022