Stock Market Today: Sensex, Nifty dip on growing second wave of Coronavirus fears; banking, auto, realty stocks bleed

Stock Market Today: On account of second round of Coronavirus wave fears, the Indian indices following the negative global cues opened in the red zone in the opening bell trade session. The BSE Sensex crashed 416 points and hit 31,144 levels while NSE Nifty dipped 111 points and hit 9,127 levels. Bank Nifty went down 429 points at 18,520 levels. Shares of banking, auto, realty were amon the major index that witnessed heavy beating in this selloff trigger.

Speaking on the reason for this dip at Indian indices Prakash Pandey, MD & CEO at Plutus Advisors said, "This dip in the Indian indices is because of the negative global cues after the growing investor worries about a second wave of coronavirus infections after the lifting of lockdown in Wuhan where five new cases of fresh Coronavirus infectioin have been reported on Monday." Pandey said that market is in the range of 8,900 to 9,350 and people should avoid taking any fresh position till the global sentiment gets stablised.

Sameet Chavan,  Chief Analyst-Technical and Derivatives at Angel Broking said, "Post the positive momentum in the global markets, the SGX Nifty hinted at probability of a gap up opening and our markets started trading for the week on a positive note around 9350. The up move continued in the first half an hour and Nifty almost tested the resistance of 9450. However, the banking space corrected and underperformed throughout the day which dragged the Nifty index too and it ended with marginal loss. During last week, the indices opened with a significant gap down and then traded within a range and formed support around 9100 and resistance around 9450. Yesterday, we started trading for this week with a gap up but Nifty was unable to surpass the resistance of 9450 and it gave up all its gains. Clearly, there was a sector specific momentum during the day in which the Auto index outperformed the most with gains of over 4 percent, whereas Bank Nifty under performed and ended with a cut of over 2 percent. Usually, such sector/stock specific momentum is seen when the indices consolidate in a broader range and till Nifty trades within the range of 9100-9450, such moves are likely to continue. Hence a directional move could be seen only post a breakout beyond the above mentioned range and till then traders are advised to trade with a stock specific approach.”

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Shares of Reliance Industries, ICICI Bank, SI, Tata Motors, Axis Bank, HDFC Bank, Bajaj Finance, Sun Pharma, HUL and Bharti Infratel were among the most trending stocks in the intraday trade while shares of Aurobindo Pharma, Maruti Suzuki, Asian Paints and Piramal Enterprises were among the most active stocks in the intraday trade session.

Banking stocks received maximum beating in the early morning trade session as the SE Banking index wsent down around 2.1 per cent. Banking major HDFC Bank share price crashed around 3 per cent, Federal Bank shares dip 3.82 per cent, shares of RBL Bank went down 3.46 per cent, ICICI Bank stock price went down 2.22 per cent, Kotak Mahindra Bank stockis went off near 2 per cent, State Bank of India or SBI scrip slide 1.87 per cent while Axis Bank counter went southward 1.17 per cent.

Auto stocks also feel the heat of selloff pressure as the BSE Auto index went down 2.2 per cent in the opening bell trade session. Auto major Maruti Suzuki India share price crashed near 4 per cent, Apollo Tyres shares went down 3.71 per cent, shares of Ashok Leyland went off 3.18 per cent, Bharat Forge stock price dipped 2.87 per cent, Eicher Motors stocks went southward 2.59 per cent, Hero MotoCorp scrip slide 2.17 per cent while TVS Motor Company counter crashed 3.35 per cent.

Among the major Asian indices, the Japanese Nikkei 225 index dipped 0.14 per cent, South Korean Kospi went down 0.69 per cent, Hong Kong's Hang Seng crashed 1.80 per cent while the Shanghai index went off 0.59 per cent.

At Wall Street yesteday, Dow 30 went off 0.45 per cent, S&P 500 ticked 0.01 per cent higher, Nasdaq scaled up 0.78 per cent while SmallCap 2000 dipped 0.32 pe cent.