January 27, Mumbai Due to poor global signals and uncertainty surrounding US trade plans, Indian equities markets saw a steep dip on Monday, which depressed mood among local investors.
The NSE Nifty50 down 263 points, or 1.14 percent, at 22,829 at the closing bell, while the BSE Sensex fell 824 points, or 1.08 percent, at 75,366.
Just six equities on the 30-stock Sensex were able to maintain their positive performance. With a 1.75 percent increase, ICICI Bank was the biggest gainer, followed by SBI, Maruti Suzuki India, Asian Paints, Hindustan Unilever, and UltraTech Cement.
But most equities, including those of Tata Motors, Tech Mahindra, HCLTech, and Zomato, saw declines.
Ten equities on the Nifty50 also saw increases in value. With a 1.93 percent increase, Britannia Industries was the biggest gainer, followed by Nestle India, ICICI Bank, Hindustan Unilever, and Larsen & Toubro.
The companies that lost the most were Trent, JSW Steel, HCLTech, and Bharat Electronics Limited (BEL), which fell 2.68 percent.
Overall, sectoral performance was poor. Leading the losses at 3.83 percent was the Media index, which was followed by the Pharma index at 2.35 percent and the IT index at 2.19 percent.
The PSU Bank index was the only outlier, closing the day with a little increase of 0.12%.
Losses were considerably more pronounced in broader markets. The Nifty Smallcap 100 plummeted 3.51%, while the Nifty Midcap 100 declined 2.25 percent.
Rupak De of LKP Securities said that the index’s recent consolidation on the daily chart was broken, which increased market pessimism in India.
In the medium term, sentiment is probably going to favor negative bets, especially as long as the index stays below 23,000. According to him, the current weakness may cause the price to drop near 22,500 on the bottom side.
Asian markets, however, saw conflicting responses. Japan’s Nikkei 225 futures fell 0.6%, while Hong Kong’s Hang Seng Tech Index gained 2%.
The India VIX, a measure of volatility in India, increased 7.36% to 17.98.
Comex gold saw resistance at $2,770 but maintained firm support around $2,750, demonstrating tenacity to drop below that level. Gold witnessed turbulent trading as the opening session of the week saw profit booking.
