The broad-based selling saw largecap, midcap and smallcap stocks take deep cuts with four stocks falling for every one stock that rose on the National Stock Exchange.
The Nifty50 index ended 189.15 points, or 1.3 per cent, lower at 14,721.30, while the BSE-Sensex closed at 49,801.62, down 1.1 per cent or 562.3 points.
In the broader market, the Nifty Midcap 100 and Nifty Smallcap 100 index closed 2.5 per cent and 2.3 per cent lower, respectively.
Here are the major movers in today’s market:
bucks weak trend
Shares of ITC, which have notoriously underperformed the benchmark indices in 2020-21, stood strong amid the selling. The stock ended as the top gainer on the Nifty50 as market buzz of a likely demerger of some operations resurfaced.
BPCL slumps as dividend disappoints
Shares of the state-owned refiner fell nearly 5 per cent after it announced a second interim dividend of Rs 5 per share, which was sharply lower than market’s expectations of more than Rs 35 per share given the recent funds raised through sale of the treasury’s stock holdings in the company.
SBI Cards falls as Carlyle trims stake
Shares of SBI Cards and Payments slumped 4 per cent after private equity firm Carlyle reportedly sold 4 per cent stake in the company through open market deals earlier today. Prior to today’s stake sale, Carlyle held 15.86 per cent stake in the credit card company.
Banks continue to get that sinking feeling
Shares of banks have been at the forefront of the recent sell-off in the domestic market as investors raised concerns over their asset quality amid buzz that the restrictions on reporting of bad loans numbers may soon be lifted. Nifty Bank index fell 1.6 per cent, underperforming Nifty50.
What gave sell signal?
As many as 94 stocks listed on the NSE gave sell signals, based on MACD indicators including BHEL, Vedanta, NMDC, Tata Communications, and Lupin.
What’s ahead for the market?
Aggressive buying of Nifty50 put options by traders suggested that the weakness in the market may sustain in the coming sessions. Traders bought the 14,500 and 14,200 strike price put options of the index indicating that they expect the benchmark to test these levels soon.
“We maintain our cautious view and suggest keeping the long positions hedged. A decline below 14,600 in Nifty would pave the way for a further slide,” said Ajit Mishra, vice president of research at Religare Broking.