The key benchmark indices Sensex and Nifty ended a week of extreme volatility marginally in the red note on Friday, following the US Federal Reserve’s monetary policy meeting.
The 30-share BSE Sensex dropped 77 points or 0.13 per cent to close at 57,200, while the broader NSE Nifty settled 8 points or 0.05 per cent lower at 17,102. Both the indexes started on a higher note but gave up all of their respective gains in the late deals amid high volatility.
Mid- and small-cap shares finished in the positive zone as Nifty Midcap 100 index rose 1.50 per cent and Nifty Smallcap 100 index moved 0.95 per cent higher.
On the stock-specific front, Maruti Suzuki India was the top Nifty loser as the stock cracked 3.21 per cent to ₹ 8,537.15. Tech Mahindra, PowerGrid, ICICI Bank and Hero MotoCorp were also among the laggards. In contrast, NTPC, UPL Ltd, Sun Pharma, Tata Consumer Products and IndusInd Bank were among the gainers.
In the broader markets, the BSE MidCap and SmallCap indices bucked the trend and ended 1 per cent higher each with LIC Housing Finance, Castrol India, Apollo Hospitals, Mindtree, Sun TV, Orient Bell, and HT Media rallying up to 18.5 per cent. Kriti Industries, Mahindra Logistics, HG Infra, TVS Motor, RBL Bank, and IDBI Capital were the worst hit stocks from the space, down between 3 and 13 per cent.
Among sectors, financials and autos were the only losers today. The Nifty Bank index slipped 0.7 per cent while the Nifty Auto index dropped 0.6 per cent. On the contrary, the Nifty IT, Pharma, and Realty indices gained around 1 per cent each.
“While bank nifty closed the session at 37689.40 level with a loss of 292.70 points Among the sectors, the Nifty Auto and Banking indices were under pressure while the Nifty IT & Pharma were among the top gainers. Stocks like NTPC, TATA Consumer, UPL, ONGC & Sun Pharma were the top gainers while Maruti, Tech M, Power Grid & ICICI Bank were prime laggards. On the technical front, the index has confirmed the bearish engulfing candlestick pattern on the weekly chart but it has taken support from 78.6 per cent RL of its previous up rally which suggests sustained above the same can show bounce back movement in the counter,” said Palak Kothari, research associate, Choice Broking.
Indian shares on Friday started strongly before erasing most of the gains as banks and auto firms came under heavy pressure. Vinod Nair, Head of Research at Geojit Financial Services, said: “After the decent opening post yesterday’s weak closing, domestic bourses again staged a quick sell-off, tracking weak European trend. Policy tightening by the US Fed and rising geopolitical tensions in Ukraine coloured global sentiments. The broad market ended mixed considering IT, realty and Mid & Smallcaps reboundes after continuous heavy-selling this week.”
Global cues
Hong Kong shares opened slightly higher Friday morning as traders struggled to cap a painful week on a slightly optimistic note, following another tepid performance on Wall Street as US rate hike fears hurt sentiment. The Hang Seng Index edged up 0.05 per cent, or 11.94 points, to 23,818.94. The Shanghai Composite Index climbed 0.39 per cent, or 13.35 points, to 3,407.59.
Tokyo’s key Nikkei index opened higher on Friday, rebounding from sharp losses in the previous session. The benchmark Nikkei 225 index rose 1.17 per cent, or 307.38 points, to 26,477.68 in early trade, while the broader Topix index added 1.22 per cent, or 21.88 points, to 1,864.32. It came after Tokyo shares plunged more than three percent on Thursday, following US Fed Chair Jerome Powell’s announcement that a rate hike was likely in March.
Another volatile day of trading on Wall Street ended Thursday with stocks closing lower after giving up an early rally. The late-afternoon fade extended the market’s losing streak as it closes in on its fourth weekly loss. The S&P 500 fell 23.42 points to 4,326.51, its third straight decline. The Dow fell 7.31 points to 34,160.78. The Nasdaq dropped 189.34 points to 13,352.78. The Russell 2000 fell 45.18 points to 1,931.29.
Oil prices eased after Brent crude hit a seven-year high above $90 a barrel, as the market balanced concerns about tight worldwide supply with expectations the U.S. Federal Reserve will soon tighten monetary policy.
Benchmark Brent fell 15 cents to $89.81 a barrel, while U.S. crude fell 20 cents to $87.15 a barrel in a volatile session with both contracts see-sawing between positive and negative territory.
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