Weak global cues along with a sell-off in bluechip stocks dragged BSE Sensex and Nifty 50 over 1 per cent down on Monday. The headline indices erased gains made in the previous week, slipping over 1.3 per cent each. Following the comment of auto dealer association’s on weak demand, two-wheeler stocks bled in the trade with Hero MotoCorp falling 6.36 per cent and Bajaj-Auto 6.07 per cent. S&P BSE Sensex ended 540 points or 1.33 per cent down at 40,145, while the Nifty 50 index gave up 11,800 and ended at 11767, down 163 points or 1.36 per cent. In the previous week, equity benchmarks gained up to 1.75 per cent.
Analyst’s take: Indices saw more than a percentage cut today as several countries in the EU are slated to go into a lockdown. “Auto stocks were pounded today on apprehensions of a softer festive season and the late afternoon selling in metal stocks pushed Indices into red during the earnings season. Value buying was witnessed today in Insurance companies and Midcap Cement,” said S Ranganathan, Head of Research at LKP Securities.
Auto stock worst performers: Bajaj-Auto shares were the worst performers, falling over 6.10 per cent. A total of 39 Nifty 50 stocks closed in the red with auto stocks being the top laggards. Mahindra and Mahindra shares ended 4.48 per cent lower.
RIL pushed Sensex down 540 pts: RIL shares ended 4 per cent down to Rs 2,028.70 apiece today an emergency arbitrator in Singapore ruled in favour of Amazon and put the Reliance Industries-Future Gropu deal on hold. RIL shares contributed the most to indices’ loss on Monday.
Nestle India top-performer: Nestle India shares gained 2.5 per cent to close at Rs 16,256.20 apiece, followed by Kotak Mahindra Bank, IndusInd Bank, Power Grid Corporation of India, Hindustan Unilever (HUL), L&T, Housing Development Finance Corporation (HDFC) and Tata Consultancy Services (TCS).
Metals stocks top dragger: The trend among sectoral indices was negative with Nifty Metal and Nifty Auto as top laggards, down 3.5 per cent and 3.22 per cent. Nifty Pharma index too fell 1.47 per cent.
MidCaps underperformed: The broader market underperformed the equity benchmarks. S&P BSE MidCap index fell 1.77 per cent or 265 points to end at 14,711, while S&P BSE Smallcap index finished at 15,000, down 0.88 per cent or 134 points.
Rupee ends weaker: Indian rupee ended weaker at 73.85 per US dollar on Monday, as compared to a previous close of 73.62 against the US dollar. “Indian rupee fell after in line with other Asian peers as risk-off mood prevailed. Waning prospects for a near term US stimulus deal and rising coronavirus infections are affecting sentiments. As we expected, the dollar rose against most major currencies fueled by safe-haven bids,” said Devarsh Vakil, Deputy Head of Retail Research, HDFC Securities.
Technical take: “The market has broken crucial support 11770. However, it happened in the time of faster than expectations. On an immediate basis, Nifty 50 has the support of 20 days SMA, which is placed at 11715. The range would be 11850 and 11600 for next two days,” Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities Ltd
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