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Markets snap 2-days gaining spree as relief from UBS-Credit Suisse deal short-lived, metal stocks worst hit

After buying for two days in a row, the Sensex and Nifty 50 fell.

The Sensex ended the trading day on Monday at 57,628.95, down 360.95 points or 0.62%. The Nifty 50 decreased 111.65 points or 0.65% to close at 16,988.40.

The Sensex dropped 905 points or 1.6% during trade hours, and the Nifty 50 dropped at least 272 points or 1.6%.

The top gainers were FMCG stocks. The highest gainer on the Sensex was HUL stock, up 2.5%, followed by ITC, up 0.80%. Kotak Bank, Sun Pharma, Nestle, and Titan were among the other companies that were up.

The Bajaj twins, Bajaj Finserv down 4.3% and Bajaj Finance down 3.2%, were the biggest losers. Tata Steel and Wipro both increased by 2.5% and 2.4%, respectively. SBI, Tata Motors, IndusInd Bank, Tech Mahindra, and HCL Tech were among the equities that saw a 1.5–2% fall.

On the BSE, the metal index dropped 422.5 points, or 2.2%, in terms of sectoral indexes. The Capital Goods and IT indices both experienced declines of about 366 points. The Bankex and Auto indices both fell by 221.5 and 246 points, respectively.

The BSE Midcap and Smallcap indices both fell by 270 points and 268 points, respectively, in the larger market.

Kotak Securities’ Shrikant Chauhan, head of retail equities research, stated: “Investors reacted negatively to bad news, such as instability in major global banks, as a result of the pessimistic atmosphere dominating the markets worldwide, which led to a significant sell-off in the local market. decreasing commodity prices and macroeconomic worries.”

Both UBS and Credit Suisse announced acquisition agreements on Sunday. UBS will remain in existence. Credit Suisse will be purchased by the bank with its headquarters in Zurich for CHF 3 billion (about $3.25 billion).

Before the US Federal Reserve meets to discuss interest rates this week, traders, according to them, are also hedging their equities bets because an aggressive increase in rates could cause further problems for equity markets throughout the world.

In the meantime, the rupee continued to lose value against the US dollar on the interbank foreign exchange market as investors dumped shares out of concern that the Credit Suisse and UBS merger will spread to the banking and financial industry. Compared to the previous print of 82.5525, the local currency finished at 82.6350 per dollar. Meanwhile, the rupee declined along with its Asian counterparts.

The currency was trading weak at 82.60, trading lower at 82.60 after giving up morning gains following a good beginning above Rs 82.50, according to Jatin Trivedi, VP Research Analyst, LKP Securities. began to trade flat. The rupee continued to rise as FII selling persisted. Good start thanks to a weaker-than-expected dollar.

Investors also paid attention to the anticipated Fed policies.

“The significant Fed interest decision on Wednesday, March 22, will keep the rupee in motion, and volatility will continue to be high for the rupee going forward. The rupee’s predicted range until then is 82.35-82.7.5, according to Trivedi.

Ajit Mishra, vice president of technical research at Religare Broking, stated that the lack of a significant domestic event is likely to keep market participants on edge going forward. Among all this “We are expecting some recovery in Nifty index, but the attitude would turn negative if it fails to sustain 16,800 levels. Risk management should be given more attention in the interim.

Rupak Dey, Senior Technical Analyst at LKP Securities, commented on the Nifty 50: “On the daily chart, Nifty created a hammer-like formation, which points to a change in the direction of the current trend. It ended little below 16950 Higher on the daily chart. With a reading below 40, the momentum indicator stayed in a bearish crossing. The index headed higher after a consolidation on the hourly chart. The smaller time frame’s RSI has crossed over in a bullish direction. Higher The index may eventually climb towards 17250. At 16950, closing basis support is still present on the downside.”

Meanwhile, Bank Nifty bulls were able to hold the 39,000 support level and create a hammer formation on the daily chart, according to Kunal Shah, Senior Technical & Derivatives Analyst, LKP Securities. As long as it maintains the 39,000-point level of support on a closing basis, the index is still in buy mode. The 39,700–39,800 range is the immediate upside barrier, and a break over it will trigger an upside short covering move.

Disclaimer: The views and recommendations given above are of individual analysts or broking companies and not of O2help. We advise investors to do due diligence with certified experts before making any investment decision.

Also Read:  Realty stock declares interim dividend, scrip rallies over 700% in 3 years


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