Broader indices fall 2%; Nifty Metal skids 6% on global growth concerns
Indian equities fell in-line with global stocks after minutes released by the US Federal Reserve suggested tapering of the Fed’s stimulus plan by late 2021. Besides, rampant spread of the Delta variant of Covid-19 and faltering global growth worried investors.
The 30-share Sensex index declined 300 points, or 0.4 per cent, and closed at 55,329 levels on Friday while the Nifty50 index ended at 16,451 levels, down 118 points or 0.7 per cent. Both the indices had hit intra-day lows of 55,014 and 16,376, respectively, earlier today.
The broader markets, meanwhile, were hit harder by the selloff as both, the BSE MidCap and SmallCap indices fell 2 per cent each. The advance to decline ratio favoured sellers and India VIX — the volatility index — surged 8.6 per cent.
Sectorally, the Nifty Metal index cracked 6 per cent while the FMCG index rose 2 per cent.
Vodafone Idea cracked 7% even as firm clarifies on licence fee rumours. The company said it has paid licence fee dues for the first quarter of 2021-22. The comment came amid a report that the troubled telco – which is struggling to stay afloat – fell Rs 150 crore short on payment of licence fee for the June quarter.
Shares of pharmaceutical companies came under pressure in Friday’s session, falling by up to 6 per cent on the BSE. Wockhardt, Aurobindo Pharma, Hikal and Natco Pharma were down 6 per cent each in intra-day trade today. Granules India, Strides Pharma Science, Unichem Laboratories, Morpen Laboratories, Lupin, Dr Lal PathLabs and Glenmark Pharmaceuticals were down between 3 per cent and 5 per cent on the BSE.
CarTrade Tech listed 1% below the issue price at Rs 1,600 per share. At 10:01 am, CarTrade Tech was trading at Rs 1,579.70, down 2.4 per cent, after hitting a low of Rs 1,548 in intra-day trade post its listing on the BSE. A combined around 4.1 million equity shares changed hands on the counter on the NSE and BSE. In comparison, the S&P BSE Sensex was down 0.49 per cent at 55,356 points.
Shares of Mindtree hit a new record high of Rs 3,393, in an otherwise a weak market, after they rallied 6 per cent on the BSE in the intra-day trade on Friday. In comparison, the S&P BSE Sensex was down 0.41 per cent at 55,403 points at 09:36 am. In the past six months, the market price of Mindtree has appreciated 101 per cent as compared to a 9 per cent rise in the benchmark index. Over three months, it has soared 62 per cent as against a 12 per cent rally in the Sensex.
Shares of Ujjivan Small Finance Bank tumbled 19% as MD and CEO, Nitin Chugh resigned from the bank and his tenure will come to an end on September 30. Ujjivan SFB said Chugh’s resignation is due to personal reasons, as he has confirmed in his resignation letter, and there are no material reasons.
Here are some picks from the week gone by.
