Indian markets took a breather after the recent surge and Nifty and Sensex settled with a cut of over 1%. Weak global cues triggered a gap-down start and it was followed by volatile swings till the end of the session on the derivative contracts expiry day. The NSE Nifty 50 index closed down 1.08% at 15,080.75, while the S&P BSE Sensex settled nearly 600 points lower at 50,846.08.
But BSE midcap and smallcap indices today extended gains to close up 0.5% and 8%, respectively, after hitting new intra-day highs during today’s session.
Rising US bond yields sapped investor appetite for equities globally. The Nifty metal index slipped the most, closing down 2.13%, erasing some of the gains notched earlier this week. Private sector lenders HDFC Bank and Housing Development Finance Corp were the top drags to the Nifty, slipping 2.2% and 2.7%, respectively.
Here is what analysts said on today’s market performance:
Deepak Jasani, Head of Retail Research, HDFC Securities.
“A jump in US bond yields knocked risk appetite globally. Nifty seems to have turned down after the sharp rise seen on Mar 03. A fall to below 14959 will confirm this. On upmoves, 15176-15202 band will provide resistance. The broader market was in better shape with a positive advance decline ratio and midcap and smallcap indices closing 0.5-1.2% higher.”
Ruchit Jain (Senior Analyst – Technical and Derivatives, Angel Broking):
“The weak sentiment in the global markets had a rub-off effect on our markets Nifty defended its support of 15000 but the pullback move from thereon was still not strong enough to take the indices much higher. However, the stock specific momentum from the midcap basket was robust and hence, we had a positive market breadth and the Nifty midcap index outperformed to clock new record highs. Thus, we would advise traders to take a backseat for a while for clear direction to emerge in the indices. The immediate support for the coming session are placed around 14960 and 14800 whereas resistances are seen around 15200 and 15300.”
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities
“On Friday, 15050/50750 and 14950/50400 levels will be decisive for the market. The Nifty / Sensex could fall to 14850/50100 or 14750/49800 on a decisive dismissal of 14950/50400. On the upside, the 15250/51300 level would be a big hurdle for the index.”
Ajit Mishra, VP – Research, Religare Broking Ltd
“Excessive volatility in the global markets, mainly due to the rise in the bond yields, impacted sentiment on the domestic front too and we don’t expect any relief from that front anytime soon. We reiterate our cautiously optimistic view on markets and suggest preferring hedged positions instead of outrights.”
Vinod Nair, Head of Research at Geojit Financial Services.
“Domestic markets along with its global peers mirrored the wounded trend of the US market. The surge in US bond yields added selling pressure in technology stocks, forced Wall Street to close lower. Blue-chips were much affected by the weak global cues, but mid and smallcaps with its increased investor confidence retained its positive momentum.”