Updated: January 25, 2021 5:20:36 pm
After a choppy trading session, benchmark equity indices on the BSE and National Stock Exchange (NSE) ended around 1 per cent lower on Monday weighed by market heavyweight Reliance Industries (RIL).
Both the S&P BSE Sensex and the Nifty 50 had opened over 0.5 per cent higher earlier in the day but lost steam soon after and turned volatile. After swinging over 988 points during the session, the 30-share BSE benchmark ended the day with a loss of 530.95 points (1.09 per cent) at 48,347.59. Likewise, the NSE benchmark too declined 133.00 points (0.93 per cent) to settle at 14,238.90.
RIL was the biggest contributor to Sensex’s fall on Monday. The stock of the oil-to-telecom giant ended 5.36 per cent lower after it reported a drop in earnings from the oil-to-chemical business on yearly basis. It was followed by IndusInd Bank, HCL Technologies, Asian Paints and Ultratech Cement. See heatmap below
Among the sectoral indices, the Nifty IT index was the worst performer of the day, ending 1.76 per cent lower on Monday dragged by Info Edge (India), HCL Tech and Coforge. On the other hand, the Nifty Pharma index settled 1.71 per cent higher led by gains in Aurobindo Pharma and Cipla.
Here’s how the sectoral indices performed:
In the broader market, the S&P BSE MidCap index settled at 18,547.34, down 214.53 points (1.14 per cent), while the S&P BSE SmallCap ended at 18,210.80, down 211.25 points (1.15 per cent).
“Nifty has fallen for the third consecutive session. This has happened after about 4 months. Poor advance decline ratio hints at broader profit taking. Pre Budget nervousness has resulted in some unloading. Locking up of large sums in the recent IPOs have also led to this sell-off. 14123-14148 is the next support band for the Nifty,” Deepak Jasani, Head of Retail Research at HDFC Securities, said in a post-market statement.
The equity markets would remain shut on Tuesday on account of Republic Day.
Global shares rose to levels just shy of record highs on Monday, as optimism over a $1.9 trillion US stimulus plan outweighed rising COVID-19 cases and delays in vaccine supplies.
European stock markets opened higher, with the pan-European STOXX 600 up 0.3 per cent. The continent’s 50 biggest stocks were also up 0.3 per cent.
Germany’s DAX rose 0.2 per cent, Italy’s FTSE MIB index jumped 0.6 per cent and Britain’s FTSE 100 rose 0.1 per cent. Spain’s IBEX and France’s CAC 40 faltered, down 0.1 per cent each.
A rally in US tech stocks to near record highs on Friday helped fuel gains in their counterparts in Asia and Europe. A European basket of tech stocks gained 1.2 per cent. In Asia, Chinese tech giant Tencent soared 11 per cent.
MSCI’s All Country World index, which tracks stocks across 49 countries, was up 0.3 per cent on the day.
Global equity markets have scaled record highs in recent days on bets COVID-19 vaccines will start to reduce infection rates worldwide and on a stronger US economic recovery under President Joe Biden.
–global market input from Reuters
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