(Image source from: moneycontrol.com)
Indian markets ended up as one of the worst performers for the day. Nifty broke the 18100 support level and it closed below 20 day SMA which is negative for the market. Sensex plunged over 1100 points to settle at 59,984 for the day and Nifty dropped by 2 percent to 17,857. All the banking stocks (HDFC, SBI, Axis Bank, ICICI Bank and Kotak Mahindra Bank) fell by 3-4 percent. The shares of ITC slumped by 5 percent and the benchmark stock indexes have risen by 25 percent. Analysts say selling by FIIs is a key reason for the correction in the market. FIIs sold over Rs 10,000 crores in the five sessions in the Indian equities.
Saurabh Jain, assistant vice president at SMC Securities said that there are differences in the valuations in the market. Nifty slipped below its 20-DMA for further downside rising of 50-DMA. The other concerns are said to be slow down in the global growth momentum and the inflation. Several investors abroad are not in a mood to invest considering the ongoing coronavirus pandemic. The banking sectoral index Nifty bank fell by 3.3 percent to 39,508. The Sensex is down by 1158.63 points or 1.89 percent and Nifty is down by 353.70 points or 1.94 percent. Adani Ports, ITC, ONGC, ICICI Bank and Kotak Mahindra Bank are the major losers in Nifty.
By Siva Kumar