Sensex dives over 450 points, Nifty slips below 19,300; Carysil, PNC Infratech & Nykaa down up to 10%

Indian equity benchmarks opened lower on Monday, taking cues from the global markets. The 30-share BSE Sensex slumped 477 points or 0.73 per cent to trade at 64,846, while the broader NSE Nifty was down 156 points or 0.80 per cent to trade at 19,272. Mid- and small-cap shares were down as Nifty Midcap 100 fell 1.32 per cent and small-cap dived 1.80 per cent. On the global front, Asian markets struggled today.

Back home, investors would be keenly watching retail inflation data, due later in the day, for cues during this holiday-truncated week as earnings season draws to a close. Corporate earnings season would likely end today, with consumer giant ITC and several other companies scheduled to report quarterly results.

"The Reserve Bank's decision to raise the cash reserve ratio (CRR) of banks to neutralise the excess liquidity created by the withdrawal of Rs 2,000 notes has added to the negative sentiments in the banking sector. However, leading banking stocks would be good bargain buys on market corrections since the fundamentals of the sector remain strong and valuations are fair. Investors should exercise caution for the near term and wait for the market to consolidate," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

All the 15 sector gauges -- compiled by the National Stock Exchange -- were trading in the red. Sub-indexes Nifty Metal, Nifty Bank, Nifty Financial Services, Nifty Auto and Nifty Consumer Durables were underperforming the NSE platform by falling as much as 2.39 per cent, 0.82 per cent, 0.97 per cent, 1.37 per cent and 1.06 per cent, respectively.

On the stock-specific front, Adani Enterprises was the top loser in the Nifty pack as the stock cracked 4.25 per cent to trade at Rs 2,431.50. Adani Ports also fell 3.22 after Deloitte has resigned as auditor. Further, Apollo Hospitals, JSW Steel and Tata Motors fell up to 2.74 per cent.

In contrast, ONGC, Dr Reddy's, Infosys, Sun Pharma and Hindustan Unilever were among the top gainers.

The overall market breadth was negative as 1,970 shares were declining while 1,009 were advancing on BSE.

On the 30-share BSE index, HDFC Bank, SBI, Tata Consultancy Services (TCS), Tata Motors, ITC, Bajaj Finance and Bajaj Finserv were among the top laggards.

Also, Carysil Ltd, PNC Infratech, Nykaa, MSTC, Muthoot Finance, Finolex Cables and Tarsons Products slipped up to 9.96 per cent. On the other hand, DB Realty, PTC Industries, Kirloskar Oil Engines and GRSE jumped up to 8.06 per cent.

Foreign investors sold shares worth Rs 3,073 crore during the previous session, according to provisional data from the National Stock Exchange (NSE). In contrast, domestic institutional investors were net buyers, adding Rs 500 crore of shares.

On Friday, Sensex had tanked 366 points or 0.56 per cent to close at 65,323, while Nifty had moved 115 points or 0.59 per cent down to settle at 19,428.

Nifty outlook

"Buyers appear to be receding, expecting deeper falls, with supports identified at 19,258, 19,060 and 18,900. Prospects of a revival in uptrend, rests on the ability of 19,400 to attract bargain buying, having retraced 61.8 per cent of the rise that unfolded since August 3. We will however wait for a confirmation from a successful push above 19,460 to play upswings for the day," said Anand James, Chief Market Strategist at Geojit Financial Services.

Also read: Adani Ports shares fall as Deloitte resigns as statutory auditor; Adani firm appoints MSKA & Associates 

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