Closing Bell: Sensex, Nifty record 7 successive loss on Monday; Adani Enterprises top loser

Closing Bell: Indian frontline indices S&P BSE Sensex and NSE Nifty ended Monday in the red marking their seventh consecutive loss. While the Sensex ended at 59,293.33, down by 170.6 points or 0.29 per cent the broader market Nifty50 settled at 17,403.65, lower by 62.15 points or 0.36 per cent. Banking gauge Nifty Bank finished at 40,332.50, higher by 423.10 points or 1.06 per cent.

In the 50-stock Nifty50, 17 stocks ended in the green with top gainers being ICICI Bank, Power Grid, Kotak Mahindra Bank, HDFC Life and State Bank of India (SBI). The top losers were Adani Enterprises, Bajaj Auto, UPL, Tata Steel and Infosys.   

Source: NSE

Source: NSE

India VIX, a measure of volatility in Nifty was down 2.18 per cent at 13.88.

Out of 15 Nifty sectoral indices, 7 closed in the green against 8 in red. The top performing indices were Nifty Realty (+2.38 per cent), Nifty Bank (+ 1 per cent) and Nifty Private Bank (+ 0.78 per cent) while the worst performers were Nifty Media (-3.89 per cent), Nifty Metal (-2.39 per cent), Nifty IT (-1.95 per cent) and Nifty Auto (-1.51 per cent).

Selling pressure was witnessed even in the broader markets. Nifty Mid Cap 100 closed at 29,894.90, lower by 208.50 points or 0.69 per cent. In the 100-stock index, there were 28 advances, 71 declines while 1 remauned unchanged. The top gainers were Tube Investments of India, Emami, Canara Bank while the top losers were Tata Teleservices (Maharashtra), Adani Wilmar and Indian Bank. 

The Nifty Small Cap 100 ended at 9,118.25, down by 103.55 points or 1.12 per cent. In the 100-stock index, 76 stocks declined. The top gainers were Chemplasts, IRB Infrastructure and Alok Industries while the top losers were PVR, Zensar Technologies and GNFC.

The rupee depreciated by 10 paise to close at 82.85 (provisional) against the US currency on Monday as a stronger dollar in the overseas market and a muted trend in domestic equities weighed on investor sentiments. At the interbank foreign exchange market, the rupee opened at 82.87 against the greenback and closed at 82.85 (provisional), registering a fall of 10 paise over its previous close of 82.75.
During the session, the domestic unit witnessed an intra-day high of 82.82 and a low of 82.94 against the American dollar.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading marginally lower at 105.15.

Global oil benchmark Brent crude futures advanced 0.46 per cent to USD 83.54 per barrel.

The Indian rupee depreciated on weak domestic markets and a strong greenback. Surge in crude oil prices and FII outflows also weighed on rupee, said Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas.

Dollar strengthened on concerns over higher interest rates for longer amid higher inflation and upbeat economic data from the US, Choudhary added.

"We expect the rupee to trade with a negative bias on risk aversion in global markets and positive greenback. Month-end Dollar demand from importers may weigh on Rupee. However, any intervention by the Reserve Bank of India may prevent sharp fall in Rupee," Choudhary said. 

Inputs from PTI 

Expert Take

"The Nifty opened on a weak note and witnessed volatile trading action throughout the day. It closed the day on a negative note for the seventh consecutive trading session. On the daily charts we can observe that the nifty has broken the support of the rising support trend line and  also closed below it which is a sign of weakness. The Nifty is hovering around the 200-day moving average (17376) which is likely to provide cushion and attract interest from long term investors. The hourly momentum indicator has a positive divergence along with a positive crossover which indicates that selling pressure is weakening on the downside. After a continuous fall for seven trading sessions a pullback is possible, however it is unlikely to be a trend reversal. Overall, the downtrend is still intact and any bounce should be used as an opportunity to create fresh short positions. Today, Nifty has achieved our short-term target of 17350 and hence we are revising it downwards to 17200." -- Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas