Sensex gives up 38,000, Nifty tests 11,150 on weak global cues; check key factors behind today’s fall

Giving up all the opening gains, BSE Sensex and Nifty 50 slipped into the negative territory on Tuesday, mainly on the back of the weak global cues. The 30-share Sensex gave up its psychological level of 38,000 and fell 284 points or 0.75 per cent to trade at 37,750. While the broader Nifty 50 index tumbled 102 points or 0.91 per cent to rule at 11,147. Index heavyweights such as Reliance Industries (RIL), Housing Development Finance Corporation (HDFC), Bajaj Finance, Infosys and Maruti Suzuki contributed the most to the indices’ loss. The broader markets underperformed the equity benchmarks. S&P BSE Midcap index lost 2.58 per cent or 375 points at 14,157, while the BSE SmallCap index fell 3.57 per cent or 526.85 points to rule at 14,220.49.

Investors lose Rs 3,58 lakh crore: The market capitalization of all BSE-listed firms was at Rs 154.76 lakh crore when stock markets closed on Monday morning after tanking over 800 points. The same was down to 151.18 lakh crore, erasing Rs 3.58 lakh crore of investor wealth. In the previous session, a massive selloff in the equity market eroded Rs 4.23 lakh crore from investors’ wealth.

TCS, HDFC Bank gain ground: Just three stocks, TCS, HDFC Bank and ICICI Bank were trading in the green, rest all the 27 Sensex stocks were trading in the red. Tata Steel shares were the worst performers, followed by Bajaj Finance, Maruti Suzuki, ONGC, NTPC, Bajaj Finserv and Power Grid Corporation of India.

All sectoral indices in red: Trend among sectoral indices was negative today. Nifty FMCG index was down1.35 per cent, Nifty IT lost 1.15 per cent, Nifty Metal plunged 2.60 per cent and Nifty Auto index fell 2.50 per cent.

Technical take: “Earlier, over the past couple of days, the NIFTY had attempted twice to take out a double to pattern resistance that existed at 11430. While the NIFTY slipped below 11430 again, it invited incremental weakness. Also, yesterday’s closing near low point below the 50-DMA invited further weakness today as well. The reason for today’s fall is purely technical in nature. The slip below 50-DMA affected some weakness; the overnight strengthening of US Dollar index also played its part. Important immediate support for NIFTY would be 11100 and 11015 levels for the immediate near term,” Milan Vaishnav, CMT, MSTA, told Financial Express Online.

Global market: Asian stock markets were trading lower in Tuesday’s session. South Korea’s Kospi declined 2.05 per cent, while the Hang Seng index in Hong Kong slipped 0.59 per cent. In overnight trade on Wall Street, US stocks plunged on possible delays in fresh stimulus from Congress. The Dow Jones Industrial Average fell 2 per cent, while the S&P 500 lost 1.28 per cent. The Nasdaq Composite dropped 0.22 per cent.