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Benchmark indices ended lower for the second consecutive day on Tuesday following sell-off across global markets.
Market opened weak amid concerns related to the spread of the Delta variant and its impact on global economies. Major indices extended the losses through the day with profit-booking across counters. Only FMCG managed to remain resilient. Though market attempted to recover a bit around noon, traders squared-off their positions ahead of market holiday. Domestic markets are closed on Wednesday on account of Bakri-Id.
The BSE Sensex closed at 52,198.51, down 354.89 points or 0.68 per cent. It hit an intraday high of 52,465.03 and a low of 52,013.51. The Nifty 50 closed at 15,632.10, down 120.30 points or 0.76 per cent. It hit an intraday high of 15,728.45 and a low of 15,578.55.
According to Ashis Biswas, Head of Technical Research at CapitalVia Global Research Limited, the technical indicator suggests a volatile movement in the market.
Market breadth turns negative
Amid the selling pressure, the breadth of the market turned in favour of the decliners with a ratio of 2:1 with 2,098 stocks declining, 1,137 advancing and 108 remaining unchanged on the BSE. As many as 449 securities hit the upper circuit and 246 the lower circuit; 434 hit their 52-week high while 10 touched a 52-week low.
Asian Paints, Ultratech Cement, Hindustan Unilever, Maruti and Grasim were the top gainers on the Nifty 50 while Hindalco, IndusInd Bank, Tata Steel, NTPC and Bharti Airtel were the top laggards.
S Ranganathan, Head of Research at LKP Securities, said, "Even as Dalal Street felt the heat of a Wall Street sell-off yesterday, we saw good interest in select pockets like cement and paints.”
“Also, a vibrant Primary Market is quite clearly reflective of private equity impact which is good for Corporate India. The broader markets, however, saw profit booking in Banks, Insurers & Asset Management Companies," said Ranganathan.
Asian Paints hits record-high on results
Asian Paints recorded new highs following the announcements of its Q1 FY 2022 results during trading hours. The company’s stock closed at ₹3,145.05 on the NSE, up ₹163.10 or 5.47 per cent. It recorded a fresh 52-week high of ₹3,179.50.
The company posted a consolidated net profit at ₹574 crore, up 161 per cent year-on-year (YoY) for the quarter ended June, up from the net profit of ₹219.6 crore in the year-ago period.
Its consolidated revenue from operations increased by 91.1 per cent to ₹5,585.36 crores from ₹2,922.66 crore.
FMCG remains resilient
On the sectoral front, all indices except Nifty FMCG closed in the red. Financials, Metals, Pharma and Realty were the most impacted sectors.
The Nifty Bank index and Nifty Financial Services were down 1.89 per cent and 1.59 per cent, respectively. The Nifty Private Bank was down 1.98 per cent while Nifty PSU Bank was 1.93 down per cent.
Nifty Metal, Nifty Pharma and Nifty Realty were down 2.34 per cent, 1.30 per cent and 2.53 per cent, respectively.
Meanwhile, Nifty FMCG edged up 0.14 per cent.
Broader indices
Broader indices were in the red as midcap and smallcap stocks also witnessed selling pressure.
Nifty Midcap 50 was down 1.67 per cent while Nifty Smallcap 50 was down 1.58 per cent.
The S&P BSE Midcap was down 1.28 per cent while the S&P BSE Smallcap was down 1.44 per cent.
The volatility index rose 4.14 per cent to 13.21.
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