NSE Nifty: Sensex drops 571 points on profit booking; Nifty slips below 17,150

NEW DELHI: Fear of a Russian sovereign debt default and a possible ban on oil imports from Russia to Europe kept market sentiment subdued on Monday and traders were recorded profits.

The banking, autos and financials sectors were among the worst performers, while metals stocks shone. Some consumer names fell as they pondered another round of price hikes.

The 30-pack of Sensex shares lost 571.44 points or 0.99% to close at 57,292.49. Its broader counterpart NSE Nifty fell 169.45 points or 0.98% to 17,117.60.

“With no significant improvement in Russia-Ukraine tensions and uncertainty in the Gulf region, crude prices surged, leading to a sell-off in the domestic market after the recent recovery. FII’s return to buy mode is positive for domestic equities, but rising bulk diesel prices and inflationary pressure are dragging the domestic market down,” said Vinod Nair, head of research at Geojit Financial Services.

“Markets are dancing to global tunes and we don’t see that changing anytime soon.”

— Ajit Mishra, Religare Brokerage

in short :

  • BSE erased early gains to trade red as it goes ex-bonus
  • Ruchi Soya fell 10% after company priced FPO
  • Shankara Building jumped 10% as APL Apollo buys stake
  • Eureka Forbes shed another 5% as the company prepares for an open offer
  • India VIX, barometer of future volatility, jumped 9% to 22.61

Among blue chip names, Coal India was the biggest gainer, up 3.29%. Hindalco, UPL, ONGC, HDFC Bank, Cipla, Titan, Sun Pharma and NTPC were other big winners.

Britannia was the big loser of the Nifty pack, dropping 3.46%. Grasim Industries, Tata Consumer, Shree Cement, SBI Life Insurance and Power Grid were other names that ended in the red.

Broader market indices ended mixed, outperforming their major peers. Nifty Smallcap rose 0.23% and Nifty Midcap fell 0.28%. Nifty 500, the broadest index on NSE, ended down 0.81%.

Oil India, National Aluminum Company, GSPL, Delta Corp, Sun Pharma Advanced Research and Strides Pharma were the main gainers in the mid and small cap indices. Sunteck Realty, BHarat Dynamics, Trident, Petronet LNG, Dhani Services and Shriram Transport Finance were the big losers in a broader market.

The NSE sector matrix was mixed. Nifty FMCG was the biggest loser, down 1.72%, followed by Nifty Bank, Nifty Auto and Nifty Financial Services. Nifty Metal was the biggest gainer, rising 1.5%.

The breadth of the market was in favor of the losers as 1,550 stocks ended in the green, while 1,971 names settled with cuts. As many as 175 stocks hit 52-week highs, mostly in the small cap space.

Meanwhile, 32 names hit 52-week lows, mostly in the microcaps space. About 268 stocks reached the upper limits of the circuit and 354 the lower limits of the circuit.

European markets were trading mixed. The London-based FTSE climbed 0.53% while Paris and Frankfurt fell 0.04% and 0.04%, respectively.

In Asia, with the exception of Hong Kong, South Korea and Thailand closed in the red, while all markets finished in the green.