Welcome to ETMarkets Watch, the show about stocks, market trends and money-making ideas. I am Atul P. M. and here are the top headlines at this hour.
· Sensex tanks 667 points; RIL, financials prove key drags
· Factory activity contracted at a sharper pace in July
· Oil falls as OPEC+ set to boost output
· Serum Institute gets nod for Phase-2 and 3 trials of Oxford's Covid vaccine
· Bandhan Bank promoters sell Rs 10,600 crore stake to meet RBI norm
· Wockhardt to supply millions of multiple Covid-19 vaccine doses to UK
Let’s now have a detailed look at what happened in the market today. Extending their fall into the fourth straight session, equity benchmarks Sensex and Nifty tanked over 1 per cent each on Monday following a selloff in index heavyweights.
Domestic PMI print showing a sharper contraction in factory activity, a major spike in Covi-19 cases and valuation concerns hit investor sentiment.
RIL, the HDFC duo, Kotak Mahindra Bank and Infosys led the fall, while some buying in Titan and Tata Steel capped the losses.
Overall, Sensex closed 667 points down at 36,939 while Nifty ended 173 points lower at 10,899.
Smallcaps outperformed their midcaps and largecap peers. Sectorally, BSE Banking, Oil & Gas, Realty and Telecom indices ended in the red. Consumer Durables, Healthcare and Metal indices gained up to 1 per cent.
In the broader market, Amber Enterprises, Advanced Enzyme, Wockhardt Pharma and Bliss GVS gained over 10 per cent, while Bandhan Bank, Apollo Hospitals and UPL each declined over 5 per cent.
Multiple analysts said the bears are now firmly in the driver’s seat. But will it lead to a deeper correction? We caught up with G Chokkalingam, Founder of Equinomics Research and Advisory, to try and understand the market undercurrent.
Welcome to the show, Mr Chokkalingam
What dragged the market down today?
Tata Motors soared 8% after posting huge Q1 loss. How does one explain that?
With equity facing so much uncertainty, which asset class do you think will outperform in rest of 2020?
On the technical charts, Nifty formed a bearish candle with lower high and lows for the third straight session. We have with us Nirav Chheda of Nirmal Bang Securities to do the chart reading.
Nifty closed below a key support at 10,900. Does it signal further consolidation?
Nifty rollover data suggested some pessimism, didn’t they?
What is your Nifty outlook for this week?
Globally, Asian peers ended mixed, while European markets traded higher in early deals. US stock futures signaled a muted start to the session as jittery investors are sitting on the sidelines amid lack of a progress on a fresh stimulus package.
That’s all for now. Do check out ETMarkets.com for all the news, market analysis, investment strategies and dozens of stock recommendations. Enjoy your evening. Good bye!