Indian shares inched lower on Monday, dragged by metal and IT companies, as global investors remained on edge following higher-than-expected U.S. inflation, while concerns over growth lingered.
The S&P BSE Sensex gyrated within a band of 771 points, before settling at 56,789, down 638 points or 1.11 per cent. The NSE Nifty50, too, closed 207 points, or 1.21 per cent, lower at 16,887. The index hit a high of 17,114.65, and a low of 16,921.25 during the day.
Adani Enterprises was the biggest Nifty dragger as it dropped 9 per cent. This was followed by selling in Eicher Motors, Maruti Suzuki, Adani Ports, Hindalco, Tata Consumer Products, HUL, Kotak Bank, ITC, HDFC Life, Britannia, SBI, and Tata Motors. All these stocks fell between 2 per cent and 6 per cent.
On the upside, ONGC, Cipla, Coal India, Dr Reddy’s Labs, BPCL, Divis Labs, and Bharti Airtel helped trim losses.
The broader markets declined in tandem with benchmarks with the BSE MidCap, and SmallCap indices dipping 1.24 per cent, and 0.5 per cent, respectively. Overall, there were roughly 1,400 stocks in the green on the BSE, as against over 2,100 stocks in the red. Volatility index — India VIX — surged over 7 per cent today.
Sectorally, barring the Nifty Pharma index, which added 1 per cent, all other indices faced profit booking. The Nifty Metal index slumped the most, down 3 per cent, followed by the Nifty PSU Bank index (2.7 per cent), and Nifty FMCG and Auto indices (2 per cent each).
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas, said: “The Nifty lacked follow through buying on October 03, after having formed a bullish outside bar & an Engulfing bull candle on September 30. It witnessed downside pressure throughout the day & ultimately formed an Inside bar pattern on the daily chart."
“In terms of the Fibonacci retracement, it retraced nearly 78.6% of the Friday’s rise where the key Fibonacci level acted as a support near 16840. The weekly chart shows that the index has once again moved down to retest its key weekly moving averages. The overall structure shows that the index has stepped into a short term consolidation mode & can see consolidation near 16800-17200. The internal structure shows that a move towards the upper end of the range is likely in the coming sessions," he added.
Tokyo stocks opened lower on Monday, extending falls on Wall Street, where fears grew that monetary tightening could lead to a global recession. The benchmark Nikkei 225 index was down 0.89 per cent, or 231.30 points, at 25,705.91 in early trade, while the broader Topix index dropped 0.73 per cent, or 13.48 points, to 1,822.46.
Wall Street stocks ended decisively lower Friday to conclude another difficult week defined by worries over inflation and the worsening Russia-Ukraine conflict.
Oil prices jumped more than 3 per cent in early Asian trade on Monday as OPEC+ considers cutting output of up to 1 million barrels per day at a meeting this week to support the market.