A formidable Biden administration in the US means larger stimulus but more taxes and scrutiny on corporations. This spooked investors who booked profits in IT and FMCG stocks.
The 30-share pack Sensex dropped 263.72 points, or 0.54 per cent, to 48,174.06. The index snapped its 10-day winning streak. Its broader peer NSE Nifty slid 53.25 points, or 0.38 per cent, to 14,146.25.
“Market is experiencing volatility due to a weak Asian market and profit booking owing to rich valuation. Banking stocks are supportive, led by good loan growth data for Q3, announced by key private banks. In the near-term, the trend of the broad market will depend a lot on FII inflows while stock specific actions will be based on Q3 result, which is about to pick up,” said Vinod Nair, Head of Research at Geojit Financial Services.
Market at a glance:
- Phillips Carbon plunges 5% after govt decides not to impose dumping duty
- Venky’s India shares slumps 6% after bird flu scare
- Titan ends in the red after reporting Q3 business update
- India VIX up nearly 3% to 21-level, reflecting nervousness on Street
- ITC falls 3% after govt mulls increasing smoking age to 21
Among the bluechip names, Power Grid was the top gainer, rising 4.39 per cent. Hindalco, GAIL, Shree Cement, Bharti Airtel, Grasim Industries, ONGC and UltraTech Cements were other major gainers.
“We suggest booking some profits off the table and maintaining a stock-specific trading approach. Also, traders should limit naked leveraged trades and prefer hedged bets”
Losers among Nifty constituents were led by ITC, that slipped 2.98 per cent. Reliance Industries, Axis Bank, Bajaj Finance, HCL Tech, HUL, TCS, Eicher Motors, BPCL and M&M were others that ended in the red.
Broader market indices were mixed but outperformed their larger peers. Nifty Smallcap slipped 0.04 per cent and Nifty Midcap rose 0.55 per cent. Nifty 500, the broadest index on NSE, fell 0.25 per cent.
IDFC First Bank, Shriram Transport Finance, Emami, Inox Leisure, Radico Khaitan and Dixon Technologies were top gainers from mid and smallcap indices, climbing in the range of 3-8 per cent.
Sun Pharma Advanced Research, Just Dial, Rain Industries, Aarti Industries, Coforge and SAIL were major losers from broader market space, falling in the range of 3-5 per cent.
Sectoral matrix was mixed on NSE. Nifty IT was the top loser, down 1.36 per cent, followed by 1.13 per cent drop in Nifty FMCG. Meanwhile, Nifty Metal, Nifty Realty and Nifty Bank closed in the green.