Net outflow by FIIs during the month stood at Rs 2,774.42 crore in the current month
Pessimism was back on Dalal Street on Monday, with bears hammering automobile stocks amid reports that the government intends to hike registration fees and renewal charges for old and new vehicles.
Adding to the gloom, foreign institutional investors continue to take the exit route from the domestic equities, after the finance minister Nirmala Sitharaman did not make any change in surcharge on the super-rich announced in the Union Budget 2019.
With selling taking centre stage, key benchmark indices are headed for the worst performance in the current month since October, when the key gauges had fallen almost 5%.
DOWNWARD SPIRAL
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- Net outflow by FIIs during the month stood at Rs 2,774.42 crore in the current month
- In October last year, both the key equity henchmark indices had fallen almost 5%
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On Money, S&P BSE Sensex ended 196.42 points, or 0.52% lower at 37686.37, after touching an intraday low of 37519.16, while NSE Nifty 50 breached 11200-level as it touched an intraday low of 11152.40 before closing 95.10 points, or 0.84% lower at 11189.20. Weak corporate earnings added to the fall.
The net outflow by foreign portfolio investors during the month stood at Rs 2,774.42 crore (both equity and debt). In the current month, Sensex has fallen 4.34%, whereas Nifty fell 5.09%.
Of the 30-stock Sensex stocks, 22 scrips ended in red, with auto sector leading the losers pack with loss of 3.55%. Major losers during the day among the Sensex stocks were Tata Motors, Vedanta, Bajaj Auto, Maruti Suzuki, Tata Steel, Hero MotoCorp and Mahindra & Mahindra losing up to 6.52%.
On the other hand, major gainers were ICICI Bank, HCL Technologies, IndusInd Bank, Tata Consultancy Services, Infosys, Tech Mahindra, which rose up to 3.32%.
Of the 11-sectoral gauges on Nifty, all ended in red, except Nifty IT which reported gains. The pack was led by Nifty Auto (-3.57%), nifty Media (-3.28%), Nifty Metal (-2.99%) and Nifty Pharma (-1.70%).
Ruchit Jain, equity technical analyst, Angel Broking, said that although the index started trading for the week on a flat note, it witnessed selling pressure from the opening ticks itself and corrected to end the session tad below 11200.
"In the last three weeks, the index has largely been dominated by the bears wherein Nifty has corrected by almost 7% from the budget day's high. In this correction, not only the midcap & smallcap stocks but some of the recent out-performers too have corrected sharply from their respective highs," Jain said.
He also said that the swing low of May 2019 is placed around 11108 and hence, 11108-11140 is seen as a crucial support range for the index.
"There is a probability of a pullback move from this support range but the overall market breadth needs to improve for the sustainability of any upmove. The immediate resistance for the index is seen around 11300 and a move above the same could lead to a pullback towards 11400-11450. Having said that, until there are any signs of reversal on the price front, traders are advised to avoid aggressive positions and trade with proper risk management strategy," Jain added.
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On Money, S&P BSE Sensex ended 196.42 points, or 0.52% lower at 37686.37, after touching an intraday low of 37519.16, while NSE Nifty 50 breached 11200-level as it touched an intraday low of 11152.40 before closing 95.10 points, or 0.84% lower at 11189.20. Weak corporate earnings added to the fall.
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