Sensex Down Over 500 Points, Nifty Below 14,750 Dragged By Banks

2021-03-31 08:46:54

Sensex Down Over 500 Points, Nifty Below 14,750 Dragged By Banks

Nifty has jumped 80 per cent in current financial year.

The Indian equity benchmarks continue to trade with a negative bias on the last day of financial year 2020-21 dragged by losses in index heavyweights like HDFC, HDFC Bank, ICICI Bank, Infosys, Reliance Industries and Kotak Mahindra Bank. The benchmarks opened lower and extended losses in afternoon trading wherein the Sensex fell as much as 611 points and Nifty 50 index was trading close to its important psychological level of 14,700. Rising bond yields in US and stronger dollar against the rupee were weighing on the investors’ sentiment. Rising US bond yields stoke fears that foreign outflows from emerging markets, analysts added.

In the current financial year Nifty has given best return since inception. As of yesterday’s closing, the Nifty has jumped 80 per cent.

As of 1:53 pm, the Sensex was down 541 points or 1.08 per cent at 49,606 and Nifty 50 index dropped 130 points or 0.88 per cent to 14,715.

“The market opened on a slightly negative note after yesterday’s rally and the correction continued in the first half following the global cues. US market ended negatively after the US treasury yields hit another high in the market. Asian markets were trading lower following negative cues overnight from Wall Street on bond yield concerns and sliding oil prices. We can expect the Nifty to be in range of 14,500-14,900 for the next few trading sessions. If Nifty breaks above 14,900 we can expect towards 15,200,” Likhita Chepa, senior research analyst at CapitalVia Global Research told NDTV.

Five of 11 sector gauges compiled by the National Stock Exchange were trading lower led by the Nifty Bank index’s 1.61 per cent fall. Nifty Financial Services, IT, Media and Private Banking indices were also trading with a negative bias.

On the other hand, state-run banking, metal, pharma, realty and FMCG shares were witnessing buying interest.

Mid- and small-cap shares were witnessing mild buying interest as Nifty Midcap 100 index rose 0.19 per cent and Nifty Smallcap 100 index advanced 0.4 per cent.

HDFC Bank was top Nifty loser, the stock fell 4.11 per cent to Rs 1,490. HSDFC, Power Grid, Tech Mahindra, Kotak Mahindra Bank, ICICI Bank, Hero MotoCorp, Coal India, Infosys, NTPC, NPCL, Reliance Industries, Bajaj Finance and Eicher Motors also declined 0.6-4 per cent.

On the flipside, UPL, Tata Motors, SBI Life, Grasim Industries, Tata Steel, Shree Cements, State Bank of India, ITC and Tata Consultancy Services rose between 1-3 per cent.

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