Nifty, Sensex witness almost 1% cuts on high volumes; broader indices follow suit.
Daily Market Review:
The week started off on a poor note, as India’s frontline indices came under selling pressure right from the beginning of today’s session.
The US government’s decision to charge steel and aluminum imports with tariffs has dampened global investor sentiment lately. As a result, a majority of Asian indices came under selling pressure today.
The ruling party, BJP’s strong show in the north-east state elections failed to lift investor spirits, as the overall sentiment remained weak amid fears of a global trade war.
Broader indices followed suit, as both the Nifty Midcap and Smallcap indices slipped 1% and 1.1%, respectively.
On the sector front, the Nifty Metal, Auto and FMCG sector indices took a beating with declines of 3.4%, 1.6%, and 1.2%, respectively. On the flip side, the Nifty IT index showcased strength, as it logged a gain of 0.9%.
The IND 47 index, which is a list of the top 47 stocks in chart and fundamental characteristics, slipped 1.2% amid weakness in the general market.
The advance-decline ratio remained in favour of losers once again. On the NSE, 314 stocks advanced while a total of 1250 scrips declined. Also, 60 names remained unchanged.
On the economic front, the Nikkei Services PMI for the month of February disappointed investors, as it dropped to a six-month low of 47.8.
Coming to the market direction, today’s volume on the Nifty surpassed previous session’s trading volume, thereby resulting in a distribution day. Sensex also came under distribution today. The distribution day count has now inched higher to seven on both the key composites.
On a positive note, both the major indices have managed to hold above their February 6 lows. As a result, we keep the Indian market status unchanged at Uptrend Under Pressure despite a high distribution count.
– Be cautious with any new purchases
– Form a defensive game plan for your portfolio
– Stay disciplined and exercise sound sell rules
To Read Detailed Reports including Stock Recommendations, Idea Lists, Evaluate Stocks etc. Subscribe to MarketSmith India.