Home Markets Benchmark Indices end on a negative note

Benchmark Indices end on a negative note

by Aamar Deo Singh (Head Advisory, Angel Broking Ltd)
Sep 20, 2021
Benchmark Indices end on a negative note, Market, KonexioNetwork.com

  • Metals and Banking stocks drag the indices lower to end on a negative note.
  • Tata Steel was the top loser, down 10 percent during intraday.

Benchmark Indices end on a negative note            

Although only a limited Asian indices were open for trading today, which signalled for a gap-down opening for the Indian indices combined with the weakness seen in the US markets on Friday. The Indian benchmark indices opened in line with their global counterparts, with Nifty down over 140 points to begin the trading day. Soon after the opening, the index had recovered from its lows and was trading in the green. However, due to global selling pressure, the index experienced another significant sell-off during the day, resulting the index closing in the red for the second straight session, with a loss of more than 1%. The Nifty Bank index, on the other hand, lost over 700 points from its day’s high.

Broader Market Movement

The small cap and the midcap indices traded in line with the benchmark indices. With the fall in the benchmarks, the small cap and the midcap also witnessed a sharp sell-off to end with a drop of 1.73 percent and 2.16 percent respectively. On the sector front, only the Nifty FMCG index managed to end on a positive note, with gains of nearly 1 percent, whereas all the other sectoral indices ended in the red. The Nifty Metal was the top loser, down more than 6 percent, whereas the PSU Banks and the Realty index were among the other losing indices. On the stock specific front, 43 stocks from the Nifty 50 pack ended in the red, of which Tata Steel, JSW Steel and Hindalco were the top losers, down between 6 to 10 percent, whereas Hindustan Unilever, ITC and Bajaj Finserv were the top gainers for today's session, up in the range of 1 to 2 percent.

Stocks in News

Steel stocks came under pressure amid concerns over weak near-term demand from China. Weak real estate data, as well as contagion fears on account of debt defaults in the high-yield developer market, set a context for the current steel production cuts. Tata Steel, Hindalco, JSW Steel, all shed over 6 to 10 percent.

Global Data Front

After witnessing a mixed trading session the previous day, the US benchmark indices ended the Friday's session on a negative note. With the drop on the day, the major averages all moved lower for the week. The Dow edged down by 0.1 percent, while the NASDAQ and the S&P 500 dropped 0.5 percent and 0.6 percent, respectively. The futures of Wall Street's three major indices are trading on a negative note. The Dow Jones Futures down 1.80 percent, the NASDAQ futures down 1.47 percent and the S&P 500 futures down 1.61 percent. While on the European front, the indices are trading on a sharply lower note, with DAX and CAC 40 down over 2 percent.

To summarise, amid global selloff, the Indian equity benchmark indices, Sensex and Nifty ended sharply lower on Monday dragged by selling in metals and banking stocks. Both Sensex and Nifty ended the volatile session near day's low. The Sensex shed 525 points to end at 58491 while the Nifty closed the day at 17396, down 188 points. The levels to watch in the coming days for Nifty are 17600 - 17700 on the upside, and on the downside, 17250 - 17200 would be the levels to monitor.