Stock market crash: Frontline indices fell sharply on Wednesday as the monthly M&A expiration shocked market sentiment. The S&P BSE Sensex fell more than 850 points to the day’s low, while the Nifty index broke below 17,900. Weak economic data from the United States pointing to a potential recession and gloomy corporate growth prospects also weighed on sentiment. Sales were made in all sectors, with the exception of auto stocks.
Maruti Suzuki, HUL, Hindalco, Bajaj Auto and Tata Steel were the handful of index winners, while Adani Ports, Ultratech Cement, Adani Enterprises, SBI and IndusInd Bank remained the biggest laggards.
In broader markets, BSE MidCap and SmallCap indices fell 0.7 percent and 0.4 percent, respectively.
Sector-wise, only the Nifty Auto and Metal indices were in the green, at 0.09 percent and 0.14 percent respectively. On the other hand, the Nifty PSU bank index fell 1.15 percent, followed by the Nifty Bank and Pharma indices (0.75 percent each).
Shares of the Adani Group fell Wednesday after Hindenburg Research said it has short positions in Adani Group companies through US-traded bonds and non-Indian derivatives, causing shares of companies to slide. The short-seller said seven Adani-listed companies have an 85% fundamental downside due to skyrocketing valuations and that “major Adani listed companies have also taken on significant debt,” which has “put the entire group in a precarious financial position “. ”. Shares of Adani Enterprises fell 2.68% to Rs 3350.40, Adani Ports fell 6.24% to Rs 713.40, Adani Power fell 4.51% to Rs 262.40, Adani Transmission fell 4 .29% to Rs 2638.00, Adani Green Energy fell 1.84% to Rs 1878.35, Adani Total Gas fell 3.55% to Rs 3747.65 and Adani Wilmar fell 4.41% to Rs 547 .90.
All sector indices trade in red; Nifty PSU Bank Drops Over 3%
All sector indices are trading in the red with Bank Nifty down 750 points or 1.8% to 41,966.35, Nifty IT down 0.61%, Pharma down 1.03%, Nifty Realty down 1.51% and Nifty PSU Bank fell the most at 3.38%.
M&O due date
Some of today’s volatility can also be attributed to today’s weekly and monthly derivatives expiration. M&O contracts expire on Thursday, but as tomorrow is a market holiday due to Republic Day celebrations, the due date is brought forward today.
Nifty is consolidating between the 17,777 and 18,250 zones from the last 18 trading sessions where declines are buying, but the lack of follow-up buying is clearly viable in the market, said Motilal Oswal’s Chandan Taparia.
Markets Focus on EU Budget, Fed Meets for Directional Signals
Traders were cautious ahead of two major events in the coming week: the Union budget and the outcome of the Fed’s meetings. Both events coincide on February 1, after which Nifty traded in a narrow band of 17800-18200. A good budget and positive comments from the Fed can break the upper limit.
“Any negative budget proposal, such as raising the long-term capital gains tax rate or a worse-than-expected hawkish Fed, could break the bottom of the range,” said Dr. VK Vijayakumar.
Sell FI
Foreign institutional investors selling on Dalal Street were net sellers to the tune of Rs 760.51 crore yesterday. The total outflow so far in the month has crossed the Rs 17,000 crore mark as FIIs reportedly prefer relatively cheaper markets like China’s.
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