Market Closing Podcast on May 21, 2018

Moneycontrol News

The S&P BSE Sensex which started on a positive note on Monday failed to hold on to momentum and turned negative for the fifth consecutive day in a row. The Nifty50 which broke below its crucial support placed at 10,550 managed to hold on to 10,500 towards the close.

The bigger casualty was the broader market as the S&P BSE Midcap index closed 1.6 percent lower while the S&P BSE Smallcap index slumped 2.2 percent.

Indian market is witnessing sustained pressure due to rise in crude oil prices, weakening rupee and political drama unfolding in Karnataka which clouded the outlook for general elections next year and left markets uneasy.

“A consecutive five-day sell-off breed bears as bulls are slaughtered with higher volatility and profit booking. A consecutive selling across the board was seen with only stock specific bullishness and PSU banks ahead of SBI results,” Mustafa Nadeem, CEO, Epic Research told Moneycontrol.

“A loss of momentum is seen for bulls while bears capitalized due to multiple negative cues not just on the Domestic but global front as well. The fall of BJP in K'taka post-Yedurappa resignation is one of the reasons we have seen a sell-off while it is coupled with a consistent upward move in volatility which is now above 14.39 levels,” he said.

He further added that higher crude oil prices in global front have also aided the fall and continued weakness in INR to above 68 levels has sparked concerns of fiscal deficit.

Sectorally, the S&P BSE Realty index slipped 3.1 percent, followed by the S&P BSE Healthcare index which dropped 2.5 percent, and the S&P BSE Consumer Durable index declined 2.07 percent.

On the gaining side, the S&P BSE PSU index rose 0.57 percent, followed by the S&P BSE IT index which rose 0.14 percent, and the S&P BSE Oil & Gas rose 0.10 percent.

Top Sensex gainers include companies like SBI (up 2.4 percent), TCS (up 1.5 percent), Coal India (up 1.2 percent), ICICI Bank (up 1.1 percent), and ONGC (up 0.3 percent).

Top Sensex losers include names like Sun Pharma (down 4.5 percent), Dr. Reddy’s Laboratories (down 4.2 percent), Yes Bank (down 3.2 percent), Tata Motors (down 2.8 percent), and Tata Steel (down 2.4 percent).

Nifty Midcap was down more than 300 points. About four shares declined for every share rising on the NSE.

Jet Airways, BEML, REC, Adani Power, LIC Housing Finance, Glenmark Pharma, Ashok Leyland, Amara Raja Batteries, Kitex Garments and Strides Shasun fell up to 20 percent.

Canara Bank, Union Bank, IDBI Bank and Balrampur Chini gained up to 7 percent.