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Wednesday, December 08, 2021

Market Highlights: Sensex crashes 1,688 points, Nifty ends below 17,100 as new Covid variant spooks global mkt

Share Market, Stock Market Highlights: The S&P BSE Sensex ended at 57,107.15, down 1,687.94 points (2.87 per cent), while the Nifty 50 settled at 17,026.45, down 509.80 points (2.91 per cent).

By: Express Web Desk | New Delhi |
Updated: November 26, 2021 6:20:28 pm
Markets were in the red on Friday (Express Photo: Ganesh Shirsekar, File)

Share/Stock Highlights: The benchmark equity indices on the BSE and National Stock Exchange (NSE) tumbled nearly 3 per cent on Friday tracking the weakness in global markets which fell as investors dumped risky assets after a new and possibly vaccine-resistant Covid-19 variant was identified in South Africa.

The S&P BSE Sensex crashed 1,687.94 points (2.87 per cent) to end at 57,107.15, while the broader Nifty 50 declined 509.80 points (2.91 per cent) to settle at 17,026.45. Earlier in the day, both the indices had opened over 1 per cent lower and extended losses as the session progressed.

On the Sensex pack, IndusInd Bank, Maruti Suzuki India, Tata Steel, NTPC, Bajaj Finance, Housing Development Finance Corporation (HDFC), Titan Company, Mahindra & Mahindra (M&M) and State Bank of India (SBI) were the biggest laggards of the day crashing in a range of 4-6 per cent.

On the other hand, Dr Reddy’s Laboratories and Nestle India were the only gainers. Asian Paints and Tata Consultancy Services (TCS) ended largely flat on Friday.

Coming to sectoral indices, all sectors except pharmaceuticals ended lower on Friday. The Nifty Pharma index rose 1.70 per cent led by Cipla, Alkem Laboratories and Pfizer. On the other hand, the Nifty Realty cracked 6.26 per cent dragged by The Phoenix Mills, DLF and Sunteck Realty. The Nifty Metal too fell 5.34 per cent weighed by National Aluminium Company, JSW Steel and Jindal Steel & Power.

Among the broader market indices, the S&P BSE MidCap index ended at 24,846.51, down 828.90 points (3.23 per cent) while the S&P BSE SmallCap fell 751.34 points (2.61 per cent) to settle at 28,071.41. The volatility index or India VIX surged 24.84 per cent to 20.8025.

(with inputs from agencies)

Live Blog

Stocks, BSE Sensex, NSE Nifty, Crude oil prices, gold, silver prices, commodity market and money markets LIVE updates:

16:23 (IST)26 Nov 2021
MARKET QUOTE | Nagaraj Shetti, Technical Research  Analyst at HDFC Securities on Friday's market performance

"After showing minor pullback rally on Thursday, Nifty witnessed bloodbath on Friday and tanked down by 509 points. After opening with a downside gap of 198 points, the weakness continued for entire session. Intraday pullback rallies in between were sold off and Nifty made a new swing low of 16985 levels towards the end. The opening downside gap remains unfilled.

A long negative candle was formed on the daily chart with gap down opening. Technically, this action indicates sharp downside breakout in the market after a minor upside bounce. This also reflects a strength of a down trend compared to minor recent upside bounce. This signal chances of more weakness in the coming weeks.

The negative chart pattern of lower high and lower low pattern was formed on the daily chart and present downward correction could be a part of lower low formation. Still there is no indication of any lower bottom formation at the lows.

A long bear candle was formed on the weekly chart and the crucial lower support of 20week EMA has been violated on the downside as per close of the week. The 20w EMA has been offering support for the Nifty in the last many months and its downside breakout could have further negative implication on the market ahead.

Conclusion: The market has been in a steep fall and more weakness could be in store. The downside breakout of the crucial supports and the overall negative chart pattern as per daily and weekly timeframe indicate resumption of sharp down trend in the market. The next lower targets to be watched for Nifty around 16500 levels in the next couple of weeks. Any pullback rally from here could find strong resistance around 17200 levels."

16:14 (IST)26 Nov 2021
Global market update

Global stocks and oil prices tumbled Friday after South Africa found a fast-spreading coronavirus variant and the European Union proposed suspending air travel from southern Africa.

London's benchmark fell by an unusually wide margin of 3.3 per cent at the opening and Tokyo lost 2.5 per cent. Shanghai, Frankfurt and Hong Kong also declined. Wall Street futures fell.

In early trading, the FTSE in London fell to 7,067.17 and the DAX in Frankfurt lost 3.3 per cent to 15,391.00. The CAC in Paris plunged 4 per cent to 6,789.13.

On Wall Street, the future for the benchmark S&P 500 future lost 1.6 per cent. That for the Dow Jones Industrial Average was off 2 per cent.

In Asia, the Shanghai Composite Index lost 0.6 per cent to 3,564.09 and the Nikkei 225 in Tokyo declined to 28,751.62. The Hang Seng in Hong Kong tumbled 2.7 per cent to 24,080.52. The Kospi in Seoul lost 1.5 per cent to 2,936.44 and Sydney's S&P-ASX 200 fell 1.7 per cent to 7,279.30.

(AP)

16:10 (IST)26 Nov 2021
Rupee plunges by 37 paise against dollar on new COVID variant worries

The rupee on Friday plunged by 37 paise against the US dollar as investors turned cautious in view of massive selloffs in domestic equities and worries over a new variant of COVID-19.

At the interbank foreign exchange market, the local currency opened at 74.60 and witnessed an intra-day high of 74.58 and a low of 74.92 against the US dollar in day trade. The local unit settled at 74.89 a dollar, down 37 paise over its previous close of 74.52.

(PTI)

15:57 (IST)26 Nov 2021
MARKET QUOTE | Vinod Nair, Head of Research at Geojit Financial Services on Friday's market performance

"Triggered by the new covid variant in South Africa, domestic markets plummeted into negative territory following weak global peers. Existing inflation fears coupled with worries of an aggressive policy tightening by the US Fed Reserve also added to today’s catastrophic session. On the domestic front, broad-based sell off was witnessed as investors dumped covid-sensitive stocks while focus was shifted towards the pharma sector amid growing concerns over the new variant with higher mutations."

15:33 (IST)26 Nov 2021
Equity markets at close

The S&P BSE Sensex ended at 57,107.15, down 1,687.94 points or 2.87 per cent, while the Nifty 50 settled at 17,026.45, down 509.80 points or 2.91 per cent.

14:42 (IST)26 Nov 2021
Market check

Here's how the indices on the BSE were performing at 2:35 pm:

Source: BSE
14:22 (IST)26 Nov 2021
Explained: After Friday crash, what’s in store for markets and what should you do?

The benchmark indices at BSE and NSE fell sharply by over 2 per cent on Friday as concerns mounted over the new Covid variant. There was anxiety around US central bank likely to wrap up its stimulus programme and raise interest rates earlier than expected in the wake of rise in inflation.

These factors led to a sharp outflow of funds from Indian stock markets resulting in the decline in indices. Click here to read

13:29 (IST)26 Nov 2021
Explained: What we know about new Covid-19 variant B.1.1.529 that’s rocking markets

A new variant of the coronavirus that causes Covid-19 — called B.1.1.529 — has been identified in South Africa, with officials there saying it’s of concern. Fears a new strain could fuel outbreaks in many countries, straining health systems, potentially evading vaccines and complicating efforts to reopen economies and borders, sent a wave of risk aversion across global markets Friday. Here’s what we know so far. Click here to read

12:51 (IST)26 Nov 2021
MARKET QUOTE | Hemang Jani, Head of Equity Strategy & Senior Group VP, Broking & Distribution at Motilal Oswal Financial Services

"Equity markets have plunged almost 2% amid the emergence of a new, highly mutated Covid-19 variant. EU announced temporary ban of flights from South Africa and few EU countries are already under full lockdown scenario. Thus there is fear of this new variant spreading to other countries which might again derail the global economy. Already there is uncertainty as to when the US Fed will start raising interest rates. So markets might continue to reel under pressure and would actively track covid situation globally."

12:48 (IST)26 Nov 2021
Sectoral indices in afternoon trade

Except for the Nifty Pharma index, all other sectoral indices on the National Stock Exchange (NSE) were trading in a sea of red.

The domestic market is trading lower tracking the global market which is spooked due to the discovery of a new variant of Covid-19 — called B.1.1.529 — which has been identified in South Africa, with officials there saying it’s of concern.

Here's how the sectoral indices were performing at 12:40 pm:

Source: NSE
12:35 (IST)26 Nov 2021
Top contributors to the Sensex in the afternoon trade

The fall was lead by RIL, HDFC, ICICI Bank and HDFC Bank. On the other hand, Dr Reddy's, TCS and Nestle were trading higher.

Here are the top contributors to the fall in Sensex during the early afternoon trade:

Source: BSE
11:43 (IST)26 Nov 2021
Stocks drop, bonds jump on fears over virus strain: Global markets wrap

Stocks, Treasury yields and oil sank Friday while the yen jumped as a new Covid-19 strain discovered in southern Africa sent a wave of caution across global markets.

An Asia-Pacific equity gauge was set for the worst slide since March, with Japan and Hong Kong underperforming and travel shares among the biggest decliners. US and European futures fell and the 10-year Treasury yield dropped to 1.56%. Click here to read

11:22 (IST)26 Nov 2021
MARKET QUOTE | Manoj Dalmia, Founder and Director at Proficient Equities on Friday's market crash

"A new variant of COVID  has been found which threatens to create a negative sentiment with some countries tightening curbs. This variant is of concern that it might resist vaccines and immune responses.

Other Reasons for fall:
- FII net sellers amounting to Rs 2300 Cr
- Stretched valuation of markets
- Brokerage downgrades 
- Concern over the liquidity tapering by the US federal reserve as well as the benchmark yields falling by 6 basis points.

The Nifty index has dropped by 364 points or is at 17163,the top gainers being Cipla, Dr Reddy’s and Divis Lab."

11:00 (IST)26 Nov 2021
Cryptocurrency: How the needle moved from ban to regulation

In less than two years, there has been a discernible shift in the Centre’s stance on cryptocurrencies – to potentially define these virtual currencies as financial assets and to stop short of a full ban on their circulation – based mostly on two specific triggers: the Supreme Court order of March 2020 that reversed the Reserve Bank of India’s move to cut the money supply to crypto exchanges, and the exponential increase in investment flows into crypto assets post the judgment.

The change in the government’s stand is evident from the title and scope of the new legislation – The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 – which is distinctly different from the earlier – Banning of Cryptocurrency and Regulation of Official Digital Currency Bill, 2019 –recommended a couple of years back by an inter-ministerial committee comprising representatives from the Finance Ministry’s Department of Economics Affairs, Information Technology ministry, SEBI and the RBI, but ultimately ended up not being introduced by the government in Parliament. Click here to read

10:54 (IST)26 Nov 2021
MARKET QUOTE | Ravi Singh, VP and Head of Research at Share India Securities on Friday's market crash

"The benchmark indices fell on account of heavy selling in Asian markets due to the fear of a possible outbreak of Covid and new restrictions after a new and possibly vaccine resistant Covid variant is detected in South Africa. Global economies are already facing high inflation and economic bottlenecks and still in revival mode post Covid outbreak. In this scenario, if new lockdown and restrictions are imposed then it would be very difficult to maintain the pace of recovery. Also, Nifty has given adequate return till date, if compared with last year return so FIIs and retail investors may be closing their positions due to approaching year end and booking profit at current levels. Nifty may remain weak and touch the level of 16,800 and Sensex may touch the 55,000 levels in next trading sessions."

10:47 (IST)26 Nov 2021
Rupee slips 16 paise to 74.68 against US dollar in early trade

The Indian rupee depreciated by 16 paise to 74.68 against the US dollar in opening trade on Friday, tracking the negative domestic equity market and a firm American dollar.

Further, unabated foreign fund outflows weighed on investor sentiment, traders said.

At the interbank foreign exchange, the rupee opened on a weak note at 74.60, then lost further ground and touched 74.68 against the American dollar, registering a decline of 16 paise from the last close. On Thursday, the rupee had closed at 74.52 against the US dollar.

(PTI)

10:27 (IST)26 Nov 2021
Tarsons Products debuts at over 5.5% premium from issue price

Shares of Tarsons Products made a firm debut and got listed at a premium of over 5.5 per cent above their issue price in the stock exchanges today.

The scrip got listed at Rs 700.00 apiece on the BSE, thereby registering a gain of 5.74 per cent from its offer price of Rs 662.00, while on the National Stock Exchange (NSE), it opened at Rs 682.00, up 3.02 per cent from the issue price. Click here to read

09:40 (IST)26 Nov 2021
Global market update

Asian stocks suffered their sharpest drop in two months on Friday after the detection of a new and possibly vaccine-resistant coronavirus variant sent investors scurrying toward the safety of bonds, the yen and the dollar.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.3%, its sharpest drop since September. Casino and beverage shares sold off in Hong Kong, and travel stocks dropped in Sydney.

Japan's Nikkei skidded 2.5% and U.S. crude oil futures fell nearly 2% as well amid fresh demand fears.

(Reuters)

09:38 (IST)26 Nov 2021
Equity market at open

Sensex plunges 705.93 to 58,089.16 in opening session; Nifty tanks 230.40 pts to 17,305.85.

(PTI)

Equity benchmark Sensex rebounded 454 points on Thursday, boosted by gains in index heavyweight Reliance Industries amid a positive trend in global markets.

The 30-share index ended 454.10 points or 0.78 per cent higher at 58,795.09. Similarly, the NSE Nifty surged 121.20 points or 0.70 per cent to close at 17,536.25.

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