Sensex logs 3rd weekly loss as Covid 2.0 beats vaccination optimism
The announcement of higher taxes in the US also dampened the mood on Dalal Street. Many analysts, however, believe the selloff in the market may end soon as increasing vaccinations will eventually beat the spread of the deadly virus.
The 30-share pack Sensex dropped 202.22 points or 0.42 per cent to close at 47,878.45. The index gyrated in a 595.84-point range during the session, reflecting volatility in the market. Its broader peer NSE Nifty declined 64.80 points or 0.45 per cent to settle at 14,341.35.
For the week, the Sensex shed 953.58 points or 1.95 per cent and the Nifty lost 276.5 points or 1.89 per cent. That marked the third weekly loss in a row for both benchmarks.
“In the short term, there is little to protect the market from falling further. The medium and long-term story remains very compelling,” said Mark Matthews, Head Research Asia, Julius Baer.
Market at a glance
- Tata Elxsi climbs 6% after company reports 40% rise in Q4 profit
- Rakesh Jhunjhunwala-backed Nazara Tech leaps 5% after stellar Q4 show
- Fear and nervousness gauge India VIX slips 1.5%
- FMCG, realty stocks under selling pressure as pandemic continues to spread violently
- Stocks of smallcap oxygen producers continue rally as demand outstrips supplies
Among the blue chip stocks, NTPC was the top gainer, rising 3.94 per cent. Power Grid, HDFC Life Insurance, IndusInd Bank, BPCL, Coal India, Axis Bank, Divi’s Laboratories and SBI Life Insurance were other gainers.
Britannia was the top loser in the Nifty pack, falling 2.67 per cent. M&M, Dr Reddy’s Laboratories, Wipro, ICICI Bank, Hindalco, Tech Mahindra and HUL were other scrips that ended in the red.
Broader market indices ended with gains in line with their headline peers. Nifty Smallcap rose 0.85 per cent and Nifty Midcap added 0.46 per cent. Nifty 500, the broadest index on NSE, climbed 0.64 per cent.
Tata Elxsi, Indian Hotels, Shriram Transport Finance, Alok Industries, Indian Bank and Alkyl Amines were top gainers from mid- and small-cap indices, climbing in the range of 3-10 per cent.
BEML, Century Ply, BASF, Escorts, Dalmia Bharat and Page Industries were major losers from the broader market space, falling in the range of 2-5 per cent.
Barring Nifty Media and Nifty PSU Bank, which rose 0.47 per cent and 0.30 per cent, respectively, all sectoral indices on NSE closed with cuts. Nifty Realty was the top loser, down 1.1 per cent. Nifty FMCG and Nifty IT were other major losers.
“We maintain our cautious stance for the markets in the near term as increasing restrictions would adversely impact economic activity and earnings.”
Overall market breadth was in favour of gainers as 1,591 stocks ended in the green while 1,336 counters settled with cuts. As many as 166 securities hit 52-week highs, mostly from the small-cap space. Meanwhile, 44 stocks hit 52-week lows, mostly from the micro-cap space. About 310 stocks hit upper circuit limits and 204 lower circuit limits.
European markets were trading lower at the last count. London-based FTSE was down 0.50 per cent while Paris and Frankfurt declined 0.24 per cent and 0.34 per cent, respectively. In Asia, barring Japan and Thailand, all markets closed with gains.
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