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Wednesday, September 30, 2020

Sensex crashes 634 points, Nifty ends below 11,350-mark; metals, banks drag

The S&P BSE Sensex crashed 633.76 points (1.63 per cent) to end at 38,357.18, while the broader Nifty 50 settled at 11,333.85, down 193.60 points (1.68 per cent).

By: Express Web Desk | New Delhi | Updated: September 4, 2020 4:52:28 pm
BSE in Dalal Street, Mumbai. (Express photo by Nirmal Harindran)

The benchmark equity indices on the BSE and National Stock Exchange (NSE) ended over 1.6 per cent lower on Friday tracking weakness in the global market.

The S&P BSE Sensex crashed 633.76 points (1.63 per cent) to end at 38,357.18, while the broader Nifty 50 settled at 11,333.85, down 193.60 points (1.68 per cent). Earlier in the day, both the indices had opened over 1.3 per cent lower and extended losses as the day progressed. The Sensex had tanked to 38,249.77 during the intraday trade, while the Nifty fell to a low of 11,303.65.

Losses in the Sensex during the day were led by Axis Bank which declined 4.07 per cent, followed by Tata Steel, State Bank of India (SBI), NTPC, Bharti Airtel and ITC. On the other hand, only Maruti Suzuki India finished with a gain of 1.70 per cent. (see heatmap below)

Gainer and losers of the day on the Sensex. (Source: BSE)

Among the sectoral indices, the Nifty Metal index was the worst performer on Friday crashing 3.01 per cent weighed by Jindal Steel & Power, Welspun Corp and Tata Steel. It was followed by the Nifty PSU Bank index which fell 2.68 per cent dragged by bank of India, Bank of Maharashtra and SBI.

Here’s how the sectoral indices performed:

Sectoral losers of the day on the National Stock Exchange. (Source: NSE)

“Friday’s decline in Nifty could signal a reversal of the last three sessions of upmove. The bearish engulfing pattern that formed on 31st March is still active and the market moved below the long bear candle as per intraday, but managed to place just above it,” Nagaraj Shetti, Technical Research Analyst at HDFC Securities said in a post-market statement.

“The crucial multiple lower supports of around 11350-11380 (previous swing low, minor uptrend line and 20 day EMA) has been broken on Friday and Nifty closed just below that area towards the end. Hence, a decisive decline below this area could open more weakness in the near term,” he said.

In the broader market, the S&P BSE MidCap index slipped 262.02 points (1.74 per cent) to end at 14,817.06, while the S&P BSE SmallCap settled at 14,602.97, down 158.36 points (1.07 per cent).

Rupee

Snapping the two-day losing streak, the rupee rebounded by 33 paise and settled at 73.14 (provisional) against the US dollar on Friday, even as the domestic equity market was trading with significant losses.

At the interbank forex market, the domestic unit opened on a strong note at 73.38 against the US dollar, then gained further ground and closed at 73.14 against the American currency, registering a gain of 33 paise over its previous close.

During the trading session the local unit witnessed high volatility and touched an intra-day high of 73.01 and a low of 73.47 against the greenback.

On Thursday, the rupee slumped 44 paise to close at 73.47 against the US dollar as rise in demand for the American currency from oil importers weighed on currency market sentiment.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.03 per cent higher at 92.77.

Global market

World shares edged lower on Friday, and were on course for their worst week in more than two months, though gains in safer assets like bonds and the dollar were muted as investors awaited US jobs data to see if it triggers a bigger sell-off.

The pan-European STOXX 600 index added 0.4 per cent, rebounding from its worst day in more than a month a day before amid a tech-led plunge on Wall Street on Thursday.

Data showed German industrial goods orders rose by a smaller-than-expected 2.8 per cent on the month in July, undermining hopes of recovery for Europe’s largest economy from the coronavirus shock.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.3 per cent and looked set to snap a six-week winning streak with its biggest weekly loss since April. Japan’s benchmark Nikkei share average closed down 1.1 per cent.

The MSCI world equity index, which tracks shares in 49 countries and had touched record highs earlier on Thursday, shed 0.1 per cent.

– with rupee input from PTI and global market input from Reuters

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