The S&P BSE Sensex and NSE Nifty 50 indexes erased gains wherein the Sensex fell as much as 640 points from its day’s highest level and Nifty 50 index dropped 177 points from its intraday high of 11,794.25 as volatility increased ahead of release of GDP data. Analysts said investors booked profits after markets surged to new six month highs ahead of announcement of Gross Domestic Product (GDP) data due later in the evening. Earlier in the day, Sensex and Nifty staged a gap up opening as investors’ cheered government’s move to further ease Covid-related restrictions. However, the momentum was short-lived.
As of 11:33 am, the Sensex was down 78 points at 39,388.94 and Nifty was at 11,631.80, down 16 points.
India is likely entering its deepest recession on record, which is expected to run through the second half of the fiscal year, as the rapid spread of the coronavirus pandemic continues to weigh on demand, hindering a pickup in business and economic activity.
Meanwhile selling pressure was visible across sectors as nine of 11 sector gauges compiled by the National Stock Exchange were trading lower led by the Nifty Media index’s over 3 per cent fall. Banking, auto, financial services, metal, pharma, capital goods and real estate shares were also witnessing selling pressure.
On the other hand, a few IT shares were witnessing buying interest.
Mid- and small-cap shares were witnessing also witnessing selling pressure as the Nifty Midcap 100 and Nifty Smallcap 100 indexes fell over 1.5 per cent each.
IndusInd Bank was top Nifty loser, the stock fell over 4 per cent to Rs 636. Zee Entertainment, State Bank of India, JSW Steel, Bajaj Finance, Sun Pharma, Kotak Mahindra Bank, ICICI Bank, Eicher Motors, Maruti Suzuki, Bharti Airtel and Mahindra & Mahindra also fell between 1.6-3.2 per cent each.
On the flipside, Reliance Industries rose nearly 1 per cent after the company on Saturday agreed to buy Future Group’s retail and other businesses for $3.38 billion. Shares of Future Enterprises Ltd rose about 5 per cent. ONGC, Bharti Infratel, Wipro, HDFC Bank, Adani Ports and tech Mahindra were also among the gainers.
The overall market breadth was extremely bearish as 2,080 shares were advancing while a little over 500 were gaining on the BSE.
