D-St selloff in numbers: Rs 4.5 lakh cr investor wealth erased; 60 stocks hit 52-week lows; 3 of 4 stocks in red
For Sensex, the major culprits that dragged the index were Reliance Industries, ICICI Bank, HDFC, HDFC Bank, Axis Bank, Kotak Mahindra Bank and ITC. Reliance Industries and ICICI Bank alone contributed negatively to over 200 points fall
- Dec 21, 2022,
- Updated Dec 21, 2022 5:03 PM IST
Domestic stocks took a beating on Wednesday, with the BSE barometer Sensex plunging 1,068 points from day's high to a low of 60,938.38. Such was the weak sentiment in the broader market that three out of every four active stocks settled in the red; over Rs 4.5 lakh crore of BSE market capitalisation was erased and 50 stocks on the exchange fell 10 per cent or above, data showed. The 30-pack index eventually closed the day at 61,067.24, down 635.05 points.
"The market underperformed Asian peers and came down crumbling, mainly over concerns that recessionary fears in key major economies will have a spill-over effect on the local growth prospects. Investors were also worried that mounting Covid cases in China may lead to further deterioration in global economic health, prompting traders to cut their equity market exposure," said Shrikant Chouhan, Head of Equity Research at Kotak Securities.
Here's today's market fall in number:
Rs 4.5 lakh crore investor wealth lost
Investor wealth, as suggested by the BSE market capitalisation, fell Rs 4.48 lakh crore to Rs 282.91 lakh crore compared with Rs 287.39 lakh crore in the previous session. Frontline stocks such as Reliance Industries, ICICI Bank, the HDFC Duo, ITC, SBI and Axis Bank contributed to the fall.
60 stocks hit 52-week lows
As many as 60 stocks hit their 52-week lows in Wednesday's trade. They included BSE500 stocks such as Gland Pharma, Indigo Paints, MapMyIndia, Rossari, Sunteck Realty and Sterling and Wilson Renewable Energy.
3 of every 4 stocks in the red
Every three of four stocks that traded on BSE today fell. Out of 3,658 stocks, 2,765 stocks settled in the red. Only 786 stocks advanced while 113 stocks remained unchanged.
50 stocks drop over 10%
Shares of HCC, IFCI, Suzlon Energy, MTNL and Bank of Maharashtra fell 10 per cent or more. A total of 50 stocks declined in double digits for the day.
RIL, banks lead Sensex fall
For Sensex, the major culprits that dragged the index lower were Reliance Industries, ICICI Bank, HDFC, HDFC Bank, Axis Bank, Kotak Mahindra Bank and ITC. Reliance Industries and ICICI Bank alone contributed negatively to over 200 points fall.
What lies ahead?
Covid-sensitive sectors such as pharma and diagnostics were in limelight and are expected to remain in momentum, said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.
"On the other hand, sectors like travel and tourism, hotels, airlines, entertainment and retail sectors may witness some pressure. Given the concern over the resurgence of pandemic once again along with recessionary fear, we expect the market volatility to continue. In the meantime, investors would monitor US existing home sales data to be released today followed by GDP data of US and UK tomorrow (Thursday)," he said.
Technical, F&O signals
Nifty formed a Bearish Engulfing pattern on the daily chart, suggesting the bears are in a driving seat. The index has also faced a resistance from falling trend lines and showed profit booking from higher levels. Nifty slipped below 21-DMA, but remained on the edge of 50-DMA, said Om Mehra of Choice Broking.
In the F&O segment, "On the call side, highest open interest saw seen at the 18,500-strike, followed by 18,400. On the put side, the highest open interest was at 18,000 strike price. Sell on rise would be advisable in coming days until 18,450 is attained," Mehra said.
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Domestic stocks took a beating on Wednesday, with the BSE barometer Sensex plunging 1,068 points from day's high to a low of 60,938.38. Such was the weak sentiment in the broader market that three out of every four active stocks settled in the red; over Rs 4.5 lakh crore of BSE market capitalisation was erased and 50 stocks on the exchange fell 10 per cent or above, data showed. The 30-pack index eventually closed the day at 61,067.24, down 635.05 points.
"The market underperformed Asian peers and came down crumbling, mainly over concerns that recessionary fears in key major economies will have a spill-over effect on the local growth prospects. Investors were also worried that mounting Covid cases in China may lead to further deterioration in global economic health, prompting traders to cut their equity market exposure," said Shrikant Chouhan, Head of Equity Research at Kotak Securities.
Here's today's market fall in number:
Rs 4.5 lakh crore investor wealth lost
Investor wealth, as suggested by the BSE market capitalisation, fell Rs 4.48 lakh crore to Rs 282.91 lakh crore compared with Rs 287.39 lakh crore in the previous session. Frontline stocks such as Reliance Industries, ICICI Bank, the HDFC Duo, ITC, SBI and Axis Bank contributed to the fall.
60 stocks hit 52-week lows
As many as 60 stocks hit their 52-week lows in Wednesday's trade. They included BSE500 stocks such as Gland Pharma, Indigo Paints, MapMyIndia, Rossari, Sunteck Realty and Sterling and Wilson Renewable Energy.
3 of every 4 stocks in the red
Every three of four stocks that traded on BSE today fell. Out of 3,658 stocks, 2,765 stocks settled in the red. Only 786 stocks advanced while 113 stocks remained unchanged.
50 stocks drop over 10%
Shares of HCC, IFCI, Suzlon Energy, MTNL and Bank of Maharashtra fell 10 per cent or more. A total of 50 stocks declined in double digits for the day.
RIL, banks lead Sensex fall
For Sensex, the major culprits that dragged the index lower were Reliance Industries, ICICI Bank, HDFC, HDFC Bank, Axis Bank, Kotak Mahindra Bank and ITC. Reliance Industries and ICICI Bank alone contributed negatively to over 200 points fall.
What lies ahead?
Covid-sensitive sectors such as pharma and diagnostics were in limelight and are expected to remain in momentum, said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.
"On the other hand, sectors like travel and tourism, hotels, airlines, entertainment and retail sectors may witness some pressure. Given the concern over the resurgence of pandemic once again along with recessionary fear, we expect the market volatility to continue. In the meantime, investors would monitor US existing home sales data to be released today followed by GDP data of US and UK tomorrow (Thursday)," he said.
Technical, F&O signals
Nifty formed a Bearish Engulfing pattern on the daily chart, suggesting the bears are in a driving seat. The index has also faced a resistance from falling trend lines and showed profit booking from higher levels. Nifty slipped below 21-DMA, but remained on the edge of 50-DMA, said Om Mehra of Choice Broking.
In the F&O segment, "On the call side, highest open interest saw seen at the 18,500-strike, followed by 18,400. On the put side, the highest open interest was at 18,000 strike price. Sell on rise would be advisable in coming days until 18,450 is attained," Mehra said.
Also Read | Tata Power shares clock flat returns in 2022; here’s the new target price
Also Read | UTI AMC shares jump 6% today; stock resistance at Rs 894, says an analyst