Closing Bell: Sensex, Nifty tank on oil price rise; RIL, DLF, Yes Bank stocks bleed; NIIT rises near 20%
The Nifty Bank has come under pressure due to the surge in WTI crude oil prices otherwise there is nothing to worry for the Indian equity markets, say experts.
On account of oil price rise in global commodity markets, 'normal' profit triggered at the Indian indices after witnessing a bull run in early morning trade session. The BSE Sensex crashed 161 points to 38,700 levels while the 50-stock Nifty index went down 65 points to 11,600 levels. The Nifty bank index crashed over 200 points and went below the psychological 30,000 levels. The Nifty Bank index closed at 29,845 levels. The Sensex heavyweight Reliance Industries or RIL went down around 2 per cent on Monday, DLF stocks corrected over 8 per cent while the Yes Bank shares went souththward over 2.5 per cent. However, IT stocks had a bull run and IT major NIIT Limited skyrocket 0ver 18.5 per cent.
Speaking on the current market outlook Prakash Pandey, Head of Research at Fairwealth Securities told Zee Business, "It's normal profit booking that has been triggerred by the oil price rise in the global commodity markets. The Nifty Bank has come under pressure due to the surge in WTI crude oil prices otherwise there is nothing to worry for the Indian equity markets." Giving technical views on the markets SEBI registered technical equity analyst Simi Bhaumik said, "Overall the market is bullish. The Indian indices are trading range-bound from 11,600 to 11,750 levels."
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Realty stocks had to witness the maximum casualty of this profit booking trigger. The realty major DLF crashed around 7.8 per cent, Godrej Properties nosedived over 5 per cent, Mahindra Lifespace Developers counter went off arouind 1.5 per cent, Oberoi Realty scrip went down near 0.8 per cent but Indiabulls Real Estate shares shot up over 7 per cent.
Energy stocks were among the major losers of the oil price triggered profit booking at Dalal Street. Energy major and Sensex heavyweight Reliance Industries or RIL crashed around 2 per cent, BPCL counter went down around 1.95 per cent, HPCL stocks nosedived 4 per cent, IOCL crashed around 3.8 per cent while shares of Aegis Logistics slide over 4 per cent.
In banking sector Yes bank stocks crashed around 2.8 per cent, Federal Bank counter crashed around 1.9 per cent, SBI stocks went down near 1.4 per cent, City Union Bank shares went down 1.1 per cent while Bank of Baroda went off around 1 per cent.
Major Asian indices also witnessed some amount of profit booking. Japanese Nikkei 225 index went down around 0.21 per cent, South Korean Kospi nudged 0.04 per cent higher, Hang Seng index went up by around half a per cent, Shanghai index went down 0.05 per cent. Austalian FTSE 100 went southward around 0.2 per cent.
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