NEW DELHI: Strong across-the-board selloff caused Indian equities to tank on Monday amid concerns over liquidity crunch even as weak global sentiment hurt investors’ risk appetite.
“Other than weak global sentiment, concerns over NBFC persisted. Besides, the market has gone into a wait and watch mood ahead of the Union Budget,” said Pankaj Pandey, Head of Research at ICICI Securities.
The fall was also attributed to higher valuations. “Liquidity crunch, escalating trade war and concerns over high valuations weighed on Dalal Street,” said Umesh Mehta, Head of Research, Samco Securities.
A 491-point fall in the Sensex dragged the equity barometer below the 39,000 mark after 16 sessions. The index closed at 38,960 while its NSE counterpart settled 151 points down at 11,672.
Here is a quick look on key highlights of Monday’s session:
Investors lose Rs 2 lakh cr in a day!
Monday’s selloff cut cumulative market capitalisation of BSE-listed firms to Rs 1,50,07,461.19 crore from Rs 1,52,09,588 crore on Friday, making equity investors poorer by Rs 2 lakh crore.
RIL top drag on Sensex
Shares of Reliance Industries (RIL) closed 2.69 per cent down at Rs 1,281.50 and emerged top drag on the Sensex pack. With this, the stock extended its losses into the third consecutive session, taking the magnitude of the losses to nearly 4 per cent. There was fire incident at an RIL plant in Raigad district of Maharashtra, but no casualty or damage was reported, police said.
340 stocks plumb 52-week lows
As many as 340 stocks, including Bosch, Cyient, DHFL, Bharat Forge, Bayer Cropscience, JK Tyre, Reliance Capital and Reliance Infrastructure, hit 52-week lows on BSE. On the other hand, Maharashtra Scooters, PDS Multinational Fashions, East India Securities and Innovative Ideals and Services (India), were among 33 stocks that hit 52-week highs.
Top losers of the day
Shares of Almondz Global Securities (down 19.95 per cent), National Fittings (down 17.44 per cent), Garnet International (down 17.42 per cent), Jet Airways (down 16.76 per cent), Nutraplus India (down 16.59 per cent), Hubtown (down 16.35 per cent), Kwality (down 16.06 per cent) and PC Jeweller (down 15.42 per cent) were among the top losers on BSE.
149 stocks signal fall
Momentum indicator moving average convergence divergence, or MACD, showed bearish crossovers on 149 counters on BSE, signalling that these stocks may fall in coming sessions. Among them were Adani Power, IDBI Bank, Bharti Airtel, NTPC, NHPC and Escorts. On the other hand, Apollo Tyres, Glenmark Pharma, Prajay Engineers and Arvind Fashions were among the 34 stocks that showed bullish crossovers.
Oversold & overbought stocks
Momentum oscillator Relative Strength Index, or RSI, showed 84 stocks, including Reliance Infrastructure, Jet Airways, Jaiprakash Associates, Mercator and Sadhana Nitro, entered the oversold zone on BSE. On the other hand, Panth Infinity, Uniply Industries, Ashari Agencies and HDFC AMC were among 27 stocks that entered the overbought zone.
Jet shares plunge 17%
Falling for the eleventh consecutive session, shares of Jet closed 16.76 per cent down at Rs 68.30 after hitting a fresh all-time low of Rs 66. In these 11 sessions, the stock has eroded 55 per cent of its market value. An ETNow report suggested that PNB, the second largest lender of the debt-ridden airline, may take the airline to NCLT in next 24-48 hours.
Vedanta shares drop 3%
Shares of Vedanta fell 3.33 per cent to close at Rs 163.95 after the chairman’s statement that the firm has lost about $200 million in profits ever since its copper plant in Tamil Nadu was shut.
Shriram Transport plunges 6%
Shares of Shriram Transport Finance (STFC) plunged 6.15 per cent to Rs 1,015 after Piramal Enterprises sold its entire stake in the company via multiple block deals. Piramal shares closed 3.07 per cent down at Rs 2,004.85.
Reliance Infra slips 5%
Shares of Reliance Infrastructure settled 4.72 per cent lower at Rs 56.50 after the company reported a net loss of Rs 3,301 crore for the fourth quarter of 2018-19, its biggest ever, as it undertook impairment and write-offs of over Rs 8,500 crore.
Source: Economic Times