Nifty closed below 18,300 level; Sensex tanked 460 points as PSU Banks, IT lost ground

Tata Motors emerged as the top gainer after it is set to replace Dr Reddy’s Laboratories in Sensex.

Market update at 3.30 PM: In a volatile Friday’s session, the benchmark index Nifty 50 recovered about 120 points mid-day, only to lose the entire points towards the end. It closed at day’s low and below 18,300 levels while S&P BSE Sensex tanked 460 points. Nifty Midcap and Nifty Smallcap plunged 1.60 per cent and 0.63 per cent respectively.  

While all sectors closed negatively, PSU Banks, IT and Realty were the top drags. India VIX surged nearly 2 per cent amidst this volatility and has jumped nearly 10 per cent in the past 2 days.   

Tata Motors emerged as the top gainer after it is set to replace Dr Reddy’s Laboratories in Sensex. HDFC Bank and HUL were also among the top gainers from the Nifty 50 stocks. On the other hand, Dr Reddy’s Laboratories, M&M and Adani Ports were the top losers.  

On the technical chart, Nifty formed a bearish inverted hammer candle as a follow-up to the big red candle of Thursday. The short-term sentiment has turned negative as it breached its previous swing high. Meanwhile, the focus shall turn towards the global market to anticipate further trends.   

Market update at 12.45 PM: Indices have managed to recover from their day’s low as good buying interest in energy stocks lifted investors’ sentiment. Reliance, ONGC and Tech Mahindra are the top performers from the Nifty 50 stocks. Currently, Nifty and Sensex are trading on a flat note, while slight recovery is also seen across midcap and Smallcap indices. 

Metals, IT and energy stocks have seen good buying interest while weakness persists across PSU Banks.

Market update at 11 AM: Indices are trading at their day’s low as strong profit boking across PSU Banks, IT, Auto and metal lead to a dive in broader markets. NSE Nifty 50 index has slipped 0.70 per cent to trade below 18,300 level while Sensex has tanked over 400 points. Nifty Midcap and Nifty Smallcap indices  plunged over 1 per cent each. 

All the sectors are trading in negative, which indicates a broad based weakness in the market. India VIX has surged over 3 per cent as fear grows on D-street. 

About 457 stocks are advancing while 1,477 stocks are on a decline. This indicates weak market breadth.

Market update at 9.40 AM: Indices have been trading lower amid bad global cues. NSE Nifty 50 index has slipped 0.27 per cent while S&P BSE Sensex has lost about 150 points. Midcap index has plunged nearly 1 per cent while Smallcap index is trading on a flat note.  

IT, PSU Banks and auto are weak today while energy stocks have seen some strength. India VIX has slipped nearly 1 per cent. 

Pre-market update: The Wall Street indices bled during Thursday's session after US retail sales data suggested that inflation has dented consumer confidence and aggressive rate hikes might push economy into recession. Dow Jones tanked 765 points while tech-heavy Nasdaq plunged 3.23 per cent. The Asian markets have thus opened lower and SGX Nifty signals a loss of 60 points.

Crude oil slumps over 2 per cent after rate hikes by the Central banks this week fuelled global recession fears. Brent crude hovers around 81-level.

Government slashes windfall tax on domestic crude oil by Rs 1,700 per tonne. Thus, OMC stocks are likely to be in focus.

In the last trading session, the FIIs have sold to the tune of Rs 710 crore while the DIIs bought shares worth Rs 260 crore.

Nifty is expected to trade amid volatility and price action shall be keenly watched at support levels.