The domestic equity markets ended on a negative note on Monday, tracking Asian markets and rising crude prices amidst uncertainty surrounding Russia-Ukraine talks.
Benchmarks Nifty50 and the Sensex ended nearly 1% lower in a weak start of the week on Monday. The broader Nifty slipped below 17,200, while the Sensex tanked over 500 points to close at 17,117.60 (0.98%) and 57,292.49 (0.99%) respectively.
Nifty Midcap declined 0.30% and small gained 0.15% amid volatility on Monday.
The indices were dragged by banking, FMCG, IT, auto and realty stock, while metal gained more than 1% in an otherwise weak market.
Read More:-Sensex jumps over 1,000 points, Nifty breaches 17,200
Vijay Dhanotiya, Lead of Technical Research at CapitalVia Global Research Limited, said the market witnessed profit booking as it failed to show resilience to stay above the level of 17200. “As of now, the short-term technical condition of the market shows that the expected range of the market is likely to be between 17000 and 17400. While it is subject to further price action evolution, market research suggests it is prudent to wait for a decisive breakout above 17400 and technical factors to improve before going long in the market. Technical indicators suggest a volatile movement in the market,” he added.
“With no significant improvement in the tensions between Russia & Ukraine and uncertainty in Gulf region, crude prices surged leading to a sell-off in the domestic market after the recent rally. FII’s coming back to buying mode is a positive for domestic equities but rise in bulk diesel prices & inflationary pressure is bending the domestic market,” said Vinod Nair, Head of Research at Geojit Financial Services.
Accenture’s positive earnings and strong guidance have helped Indian IT companies to be in demand, however, late selloff was witnessed, he added.
Read More:-Markets break 5-day rally; Sensex tumbles 709 points on weak global trends
Coal India, Hindalco, UPL, ONGC, HDFC Bank, Titan, Sun Pharma and NTPC gained in a falling market.
Britannia, Power Grid, Grasim, Tata Consumer, Ultratech Cement, HCL Tech, Nestle India, Asian Paints and State Bank dragged the market the most.
