nifty: Market Watch: What drove selling pressure on D-Street today? | The Economic Times Podcast

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Let’s take a quick glance at what happened on Dalal Street today.

Domestic equity markets were unable to hold onto gains notched up in early trade and settled in the red as intense selling pressure in banking stocks and specific index heavyweights dragged down the Nifty and the Sensex.

The see-saw in stock prices on Friday was reflective of the broader trend seen in the week gone by with indices selling off on fear of global monetary tightening just to rebound on value buying immediately after.

With the Fed likely to hike rates aggressively and with global risk appetite remaining weak because of the Ukraine war and fear of a growth slowdown in China, stock market analysts believe that investors should not look for broad-based gains in indices but rather focus on specific stocks based on fundamentals.

Selling in index heavyweights Axis Bank, Reliance Industries and Infosys pulled down indices, with Friday’s selloff wiping out Rs 2.5 lakh crore worth of investor wealth.

Apart from banking stocks, auto, IT, media, realty and oil and gas counters witnessed heavy selling too.

The BSE barometer Sensex swung in a band of 1,073 points before settling 460.19 points lower at 57,060.87.

Its broader peer the Nifty50 moved in a band of 324 points before closing 142.5 points lower at 17,102.55.

Broader markets fell in line with their headline peers with the BSE midcap and smallcap indices shedding 0.8 and 0.6 per cent, respectively. Fear gauge India VIX rose 0.19 per cent to end at 19.42.

23 of the 30 stocks on the BSE Sensex declined. Axis Bank was the largest loser, sliding 7 per cent, followed by NTPC which skid 4 per cent. Power Grid and Wipro fell 3 per cent while Titan gave up 2 per cent.

Kotak Mahindra Bank, HDFC Bank, Sun Pharma and Tata Steel each gained 1 per cent.

47 stocks hit 52-week highs during the session while 19 hit 52-week lows.

We have Arijit Malakar from Ashika Stock Broking to share his views on the action and the road ahead:

Welcome to the show sir:
1. Domestic markets surrendered the gains seen in early trade and settled lower. What drove the selling pressure?
2. Given that there has been much talk about stretched valuations of headline indices, is it a good time for retail players to consider the midcap and smallcap space?

We also caught up with Brijesh Bhatia from Equitymasterto decode the technical charts for you.

1. The Nifty50 settled below the 17,200 level. What do the technical charts suggest about it?
2. Bank Nifty suffered in line with the headline index. What is your outlook for the sector?

Asian markets ended with hefty gains. Major European markets were trading higher in the first few hours of trade. Meanwhile, US stock futures were down, signalling a weak start to US equities later in the day.

That’s all for now. Do check out ETMarkets.com for all the news, market analysis, investment strategies and dozens of stock recommendations. Enjoy your evening. Bye Bye!