The benchmarks ended lower for the second day in a row on Tuesday after a massive sell off in global markets.
The market opened weakly due to concerns over the spread of the Delta variant and its impact on global economies. Major indices extended losses throughout the day with profit taking across the counters. Only FMCG has managed to remain resilient. Although the market tried to recover a bit around midday, traders adjusted their positions ahead of the market holiday. Domestic markets are closed Wednesday due to Bakri-Id.
BSE Sensex closed at 52,198.51, down 354.89 points or 0.68%. It hit an intraday high of 52,465.03 and a low of 52,013.51. The Nifty 50 closed at 15,632.10, down 120.30 points or 0.76%. It hit an intraday high of 15,728.45 and a low of 15,578.55.
According to Ashis Biswas, head of technical research at CapitalVia Global Research Limited, the technical indicator suggests volatile market movement.
Market breadth becomes negative
Amid the selling pressure, the breadth of the market turned in favor of declines at a 2: 1 ratio with 2,098 stocks falling, 1,137 advancing and 108 remaining unchanged on BSE. No less than 449 titles reached the upper circuit and 246 the lower circuit; 434 hit their 52 week high while 10 hit a 52 week low.
Asian Paints, Ultratech Cement, Hindustan Unilever, Maruti and Grasim were the main winners of the Nifty 50 while Hindalco, IndusInd Bank, Tata Steel, NTPC and Bharti Airtel were the main laggards.
S Ranganathan, head of research at LKP Securities, said: “Even though Dalal Street felt the heat of a sell-off on Wall Street yesterday, we saw good interest in some pockets like cement and paints. “
“In addition, a vibrant primary market reflects quite clearly the impact of private equity, which is good for Indian companies. The larger markets, however, saw profits in banks, insurers and asset management companies, ”Ranganathan said.
Asian Paints achieves record results
Asian Paints set new highs after announcing its first quarter FY2022 results during trading hours. Shares of the company closed at 3,145.05 yen on the NSE, up 163.10 yen or 5.47 percent. It recorded a new 52 week high at 3,179.50.
The company posted a consolidated net profit of 574 crore, up 161% year-on-year for the quarter ended in June, up from net profit of 219.6 crore a year earlier.
Its consolidated operating income increased 91.1 percent to 5,585.36 crore from 2,922.66 crore.
FMCG remains resilient
On the sector front, all indices except Nifty FMCG closed in the red. The finance, metals, pharmaceuticals and real estate sectors were the most affected.
The Nifty Bank and Nifty Financial Services index fell by 1.89% and 1.59% respectively. Nifty Private Bank was down 1.98 percent while Nifty PSU Bank was down 1.93 percent.
Nifty Metal, Nifty Pharma and Nifty Realty fell 2.34%, 1.30% and 2.53% respectively.
Meanwhile, Nifty FMCG edged up 0.14%.
Larger indices were in the red as small and mid-cap stocks also came under selling pressure.
Nifty Midcap 50 was down 1.67% while Nifty Smallcap 50 was down 1.58%.
The S&P BSE Midcap was down 1.28% while the S&P BSE Smallcap was down 1.44%.
The volatility index rose 4.14 percent to 13.21.