Markets

Broader market under pressure; volatility index rises above 22

Bears kept a grip on the market with the benchmark indices closing in the red amid volatility on Monday.

The market opened on a negative note as global sentiments remained weak and extended losses through the day. The Iidices closed lower amid broad-based selling.

The BSE Sensex closed at 54,470.67, down 364.91 points or 0.67 per cent. It recorded an intraday high of 54,795.47 and a low of 53,918.02. The Nifty 50 closed at 16,301.85, down 109.40 points or 0.67 per cent. It recorded an intraday high of 16,403.70 and a low of 16,142.10.

Over 2,400 stocks decline

The market breadth remained negative, with 2,416 stocks declining on the BSE, as against 1,052 that advanced, while 146 remained unchanged. Furthermore, 16 stocks hit the upper circuit as compared to the six stocks that were locked in the lower circuit. Besides, 133 stocks touched a 52-week low and 103 touched a 52-week high.

The volatility index closed 3.68 per cent higher at 22.03, signalling caution among investors.

Inflation concerns have been weighing on investor sentiment. Investors are worried following a hawkish stance by the Fed and rate hikes by central banks, including RBI, Bank of England and the Australian central bank, leading to an atmosphere of risk-off for equities, analysts say.

Vinod Nair, Head of Research at Geojit Financial Services said, “The market continued its downward rally amid lingering concerns over the weakening rupee, global interest rate hikes and tightening lockdowns in China. The relentless rise in the US dollar index owing to interest rate hikes and a rising US treasury yield hammered investors’ risk appetite. Strong US jobs data indicated the possibility of faster rate hikes, forcing investors to opt for safe-haven assets.”

The rupee closed at a record low of 77.50 (provisional) against the US dollar on Monday.

Powergrid, Infosys, HCL Tech, Bajaj Auto and Divi’s Lab were the top gainers on the Nifty 50, while Reliance, Nestle India, Hero Motocorp, IndusInd Bank and Tata Steel were the top losers. 

Sectoral indices

On the sectoral front, all indices except Nifty IT closed in the red. Oil & Gas, banks, metals, FMCG and realty recorded higher losses. 

Nifty IT closed flat, up 0.05 per cent.

Meanwhile, Nifty Oil & Gas, Nifty Metal and Nifty PSU Bank each closed over 2 per cent lower. Nifty Consumer Durables was down 1.55 per cent. Nifty Realty and Nifty FMCG each closed over 1 per cent lower. Nifty Bank and Nifty Private Bank were down nearly 1 per cent at closing.

Broader indices

The broader market witnessed increased pressure.

The Nifty Midcap 50 was down 1.96 per cent at closing, while the Nifty Smallcap 50 was down 2.30 per cent. The S&P BSE Midcap was down 1.89 per cent, while the S&P BSE Smallcap was down 1.67 per cent.

Published on May 09, 2022