Sensex swings nearly 900 points on global cues

Sensex swings nearly 900 points on global cues

MUMBAI: Friday witnessed one of the most volatile sessions on Dalal Street in recent months. As traders and investors were getting used to the market’s way of breaking higher grounds to scale life-highs on a regular interval, across-the-board selling pulled the index down by 549 points or 1.1% to 49,035 points at Friday’s close with 26 of its 30 constituents ending in the red. Weak global cues led to the day’s selloff, market players said.
In intraday trade, the index was down nearly 900 points from its day’s high of 49,657 points. The strong selling also led to a spike in India VIX, a measure of market volatility and fear, which shot up over 7% during the day and closed with a 4% gain at 24 points. On the NSE, the Nifty closed at 14,434 points, down 162 points, or 1.1% from Thursday’s close.

According to Geojit Financial Services head of research Vinod Nair, the market opened flat with a negative bias and weak start of European market led to further selling with all sectors in the red zone.
“The $1.9-trillion ‘American Rescue Plan’ failed to uplift the sentiment in Western markets. Investors can resort to profitbooking as the near future trend of the market will depend on Budget expectations, Q3 results and foreign inflows,” Nair wrote in a post-market note.
The day’s session also left investors poorer by Rs 2.2 lakh crore with BSE’s market capitalisation now at Rs 195.1 lakh crore. The regional equity research head of J P Morgan noted that US President-elect Joe Biden’s stimulus plan may prompt foreign funds to take money out of Asia. This too is weighing on market sentiment since this could mean muted or negative foreign fund flow into India, one of the main drivers for domestic market’s recordbreaking run for the last three months. In the last three months of 2020, foreign funds had net pumped in about $23 billion into Indian stocks, and another $2 billion so far this year, CDSL data showed.
On Friday, HDFC, Infosys and Reliance led the slide in the sensex, while Bharti Airtel and ITC cushioned the fall to a limited extent, BSE data showed.
Source From : Times Of India

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