Updated: January 27, 2021 4:21:50 pm
The benchmark equity indices on the BSE and National Stock Exchange (NSE) ended nearly 2 per cent lower on Wednesday amid weakness in the global markets and ahead of the expiry of January-series futures and options (F&O) contracts.
The S&P BSE Sensex fell 937.66 points (1.94 per cent) to end at 47,409.93. During the late afternoon session of trade, it had fallen as much as 1,077.99 points to hit an intraday low of 47,269.60 before recouping some losses towards the end.
Likewise, the Nifty 50 declined 271.40 points (1.91 per cent) to settle below the 14,000-mark at 13,967.50. During the day, the NSE benchmark had fallen as much as 309.60 points to a low of 13,929.30.
HDFC twins comprising of HDFC Bank and Housing Development Finance Corporation (HDFC), Reliance Industries (RIL) and ICICI Bank were the biggest contributors to Sensex’s fall on Wednesday.
“It is well-known that a fall in FIIs inflows will be the biggest risk to the liquidity-driven rally. Indian bourses mirrored mixed sentiment from global peers with a downward rally owing to consecutive days of FII selling. Barring defensive FMCG segment, all sectors traded in the red zone with banking and pharma stocks being the worst hit. The global markets were mixed today ahead of the US Fed meeting amid uncertainty over the US stimulus. We should expect higher volatility in the coming days’ given pre-budget event risk,” said Vinod Nair, Head of Research at Geojit Financial Services.
Of the Sensex constituents, 24 stocks settled in the red while just six ended in the green. See heatmap below
Analysts said investors of late have preferred taking profits off the table ahead of the Union Budget 2021 and the expiry of futures and options (F&O) contracts.
Among the sectoral indices on the NSE, the key Nifty Bank index ended 2.93 per cent lower weighed by IndusInd Bank, Axis Bank and HDFC Bank. The Nifty Financial Services index too fell 2.77 per cent led by weakness in Shriram Transport Finance Company, ICICI Lombard General Insurance Company and Mahindra & Mahindra Financial Services. Apart from banks and financials, the Nifty Metal index was another top loser of the day, ending 2.52 per cent lower dragged by Tata Steel, Hindalco Industries and Jindal Steel & Power.
Here’s how the sectoral indices performed:
The volatility index or India VIX on NSE climbed 4.93 per cent to 24.3925.
In the broader market, the S&P BSE MidCap index ended at 18,292.16, down 255.18 points (1.38 per cent) while the S&P BSE SmallCap settled at 18,115.31, down 95.49 points (0.52 per cent).
Europe’s share indexes opened lower on Wednesday, while investors focused on the US Federal Reserve meeting and US tech giants’ earnings.
MSCI world equity index, which tracks shares in 49 countries, was down 0.1 per cent at 0842 GMT, having edged down in the last week after it hit a new all-time high on Jan. 21. In the Asian session on Wednesday, shares were hurt by some profit-taking, as investors grew wary of stretched valuations.
European share indexes opened in the red. The STOXX 600 was down around 0.3 per cent on the day at 0854 GMT.
London’s FTSE 100 was down 0.2 per cent while Germany’s DAX was down 0.5 per cent.
–global market input from Reuters
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