Sensex see-saws 1,036 points amid rising Covid cases, yields, but bulls not calling it quits

NEW DELHI: In a volatile session, benchmark indices ended lower on Monday, dragged by a selloff in private banks and financial stocks. Rising Covid-19 cases and higher bond yields put pressure on the market, but a late recovery showed bulls have not given up yet.

Higher WPI and partial lockdowns in certain states have spooked a section of investors who fear a slide in the market. However, analysts say the medium-term outlook is positive despite short-term hiccups.

The 30-share pack Sensex declined 397 points or 0.78 per cent to close at 50,395.08. The index gyrated in a range of 1035.71 points during the day. Its broader peer NSE Nifty dived 101.45 points or 0.67 per cent to settle at 14,929.50.


“Both retail and wholesale inflations inclined higher than estimated while industrial production fell in January 2021. However, optimism in European and other Asian markets helped to recover from the sharp initial losses," said Vinod Nair, Head of Research at Geojit Financial Services.

"We can expect this volatility to stabilise based on the global outlook after a confirmation from Fed to maintain an accommodative policy," he added.

Market at a glance

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• MTAR Tech debuts at 85% premium; rallies further to end up 88%
• IPO watch: Anupam Rasayan subscribed 2.09x; Laxmi Organic 1.68x; Craftsman 0.41x
• Bajaj twins among top blue chip losers; IT stocks provide some support
• Metal stocks shine amid rout across sectors; Nifty Metal jumps over 1%

Among the blue chip stocks, JSW Steel was the top gainer, rising 2.44 per cent. Tech Mahindra, Tata Steel, Hindalco, IndusInd Bank, Power Grid, Eicher Motors, HCL Tech and SBI were other gainers.

Divi’s Labs was the top loser in the Nifty pack, falling 2.91 per cent. Bajaj Finserv, GAIL, Bajaj Finance, Hero MotoCorp, Bajaj Auto, L&T, Dr Reddy’s Laboratories and Adani Ports were others that ended in the red.

Broader market indices ended with cuts, trading in line with their headline peers. Nifty Smallcap dropped 0.79 per cent and Nifty Midcap slipped 0.54 per cent. Nifty 500 -- the broadest index on NSE -- fell 0.67 per cent.

Oberoi Realty, SAIL, Coforge, India Energy Exchange, Rain Industries and Delta Corp were top gainers from the mid- and small-cap indices, climbing in the range of 3-9 per cent.

Aegis Chemicals, BEML, IRB Infra, Dhani Services, AU Small Finance Bank and Trent were major losers from broader market space, falling in the range of 3-8 per cent.

The sectoral matrix on NSE was mixed. Nifty Metal added 1.04 per cent, followed by Nifty IT and Nifty PSU Bank. Nifty Media was the biggest loser, down 1.44 per cent, followed by Nifty Pharma and Nifty Financial Service.

Market breadth was in favour of losers, as 1,224 stocks ended in the green whereas 1,831 scrips settled with cuts. As many as 248 securities hit 52-week highs, mostly from the small-cap space. Meanwhile, 77 counters hit 52-week lows, mostly from the micro-cap space. About 345 stocks hit upper circuit limits and 311 lower circuit limits.

European markets were trading higher at the last count. London-based FTSE was up 0.35 per cent, while Paris and Frankfurt added 0.35 per cent and 0.19 per cent, respectively. In Asia, Japan, Singapore and Hong Kong closed in the green, while other markets registered losses.