Dalal Street snaps 3-day winning run as Sensex takes 291-pt hit amid profit booking
Analysts awaited more Q4 earnings reports from India Inc for cues.
By Shubham Raj, ETMarkets.com | Updated:
Reuters
NEW DELHI: Domestic blue-chip indices fell on Wednesday as investors resorted to book quick gains made in the past couple of sessions. Weak global cues also dented the sentiments on Dalal Street.
Realty and media stocks were in heavy demand while metal, FMCG and private banks saw selling by investors. Broader market indices were mixed with smallcap stocks seeing traction.
The 30-share pack Sensex dropped 290.69 points or 0.58 per cent to close at 49,902.64. The index traded in a range of 447.61 points during the day. Its broader peer NSE Nifty dropped 77.95 points or 0.52 per cent to settle at 15,030.15.
“The recent sharp rally has triggered some caution for the near term. The global market was tentative ahead of the announcement of Fed minutes, this was mirrored in the domestic market, though it is not expected to be hawkish. Optimism gained from declining Covid cases resisted a sharp correction in the domestic market," said Vinod Nair, Head of Research at Geojit Financial Services.
Market at a glance:
Oberoi Realty, Indian Hotels, ICICI Securities, Century Ply, Wockhardt Pharma and Mazdock Shipbuilders were top gainers from midcap and smallcap indices, climbing in the range of 5-9 per cent.
Caplin Point Laboratories, Aegis Chemicals, National Aluminium Company, PI Industries, Aarti Industries and Coforge were major losers from broader market space, falling in the range of 3-7 per cent.
Market breadth was in favour of bulls as 1,794 stocks ended in the green while 1,264 counters settled with cuts. As many as 309 securities hit 52-week highs, mostly from the smallcap space. Meanwhile, 20 scrips hit 52-week lows, mostly from the microcap space. About 435 stocks hit upper circuit limits and 154 lower circuit limits.
European markets were trading lower at the last count. London-based FTSE was down 1.10 per cent while Paris and Frankfurt declined 1.07 per cent and 1.31 per cent, respectively. In Asia, Hong Kong and South Korea closed with gains while other markets ended with losses.
Realty and media stocks were in heavy demand while metal, FMCG and private banks saw selling by investors. Broader market indices were mixed with smallcap stocks seeing traction.
The 30-share pack Sensex dropped 290.69 points or 0.58 per cent to close at 49,902.64. The index traded in a range of 447.61 points during the day. Its broader peer NSE Nifty dropped 77.95 points or 0.52 per cent to settle at 15,030.15.
“The recent sharp rally has triggered some caution for the near term. The global market was tentative ahead of the announcement of Fed minutes, this was mirrored in the domestic market, though it is not expected to be hawkish. Optimism gained from declining Covid cases resisted a sharp correction in the domestic market," said Vinod Nair, Head of Research at Geojit Financial Services.
Market at a glance:
- Tata Motors tanks 6% after co reports shock Q4 loss
- Adani Green Energy climbs 4% after co decides to acquire SB Energy
- Brigade Enterprises jumps 4% as co returns to the black
- Ujjivan SFB falls 3% after March quarter earnings disappoint investors
- Smallcap stocks defy trend; Nifty Smallcap ends in the green
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Tata Motors was the top loser in the Nifty pack, falling 5.52 per cent. Bajaj Finserv, M&M, HDFC, JSW Steel, Tata Steel, Bharti Airtel, UltraTech Cement and ICICI Bank were other scrips that ended in the red.With the Covid caseload declining, a fresh energy is permeating on Dalal Street leading to buying, especially in cyclical sectors. Analysts have said that even though earnings and growth may slip in the first quarter of FY22, the subsequent quarters will be better. Here are 7 stocks that analyst recommend for solid near-term returns:
Oberoi Realty, Indian Hotels, ICICI Securities, Century Ply, Wockhardt Pharma and Mazdock Shipbuilders were top gainers from midcap and smallcap indices, climbing in the range of 5-9 per cent.
Caplin Point Laboratories, Aegis Chemicals, National Aluminium Company, PI Industries, Aarti Industries and Coforge were major losers from broader market space, falling in the range of 3-7 per cent.
The sectoral matrix was mixed on NSE. Nifty Realty was the biggest gainer, rising 2.15 per cent. It was followed by Nifty Media and Nifty Pharma, which rose 2.01 per cent and 1.22 per cent, respectively. Nifty Financial Service was the top loser, down 0.98 per cent.Participants should keep a close eye on global cues and Covid-related updates. We've started seeing rotational buying across sectors, so the focus should be on sector and stock selection.-Ajit Mishra, Religare Broking
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Market breadth was in favour of bulls as 1,794 stocks ended in the green while 1,264 counters settled with cuts. As many as 309 securities hit 52-week highs, mostly from the smallcap space. Meanwhile, 20 scrips hit 52-week lows, mostly from the microcap space. About 435 stocks hit upper circuit limits and 154 lower circuit limits.
European markets were trading lower at the last count. London-based FTSE was down 1.10 per cent while Paris and Frankfurt declined 1.07 per cent and 1.31 per cent, respectively. In Asia, Hong Kong and South Korea closed with gains while other markets ended with losses.
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