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Sensex Drops Over 600 points, Nifty Ends Below 14,700 Dragged By Banks

The Indian equity benchmarks ended lower on last day of the current financial year as rising bond yields in US stoked fears of foreign outflows from emerging markets like India. Rising dollar against th rupee also dampened investors’ sentiment, analysts said. The benchmarks opened lower and extended losses in the last hour of trade wherein the Sensex fell as much as 694 points and Nifty 50 index ended below its important psychological level of 14,700. HDFC Bank, HDFC, Reliance Industries, Infosys, ICICI Bank and Kotak Mahindra Bank were among the top drags on the Sensex.

The Sensex ended 627 points lower at 49,509 and Nifty 50 index dropped 154 points to close at 14,691.

For the financial year 2020-21, Sensex has rallied 75 per cent and Nifty has jumped 78 per cent, making it the best fiscal year for equity markets in over a decade despite Covid-19 pandemic.

“Despite a lackluster movement, Nifty50 Index held the support level around the level of 14,600. It is expected that the market to gain momentum to increase the odds of a fresh breakout above 14,900. The momentum indicators like RSI and MACD support the up move and indicate that a new breakout potential is high with an upside projection till the 15,300 levels,” Ashis Biswas, head of technical research at CapitalVia Global Research told NDTV.

Six of 11 sector gauges compiled by the National Stock Exchange ended lower led by the Nifty Financial Services index’s over 2 per cent decline. Nifty Bank, IT and Private Bank indexes also fell between 1-1.85 per cent.

On the other hand, real estate, FMCG, PSU banking and pharma shares outperformed in an otherwise weak session.

Mid- and small-cap shares also bucked the weak trend as Nifty Midcap 100 and Nifty Smallcap 100 indexes rose around 0.4 per cent.

Overall market breadth was neutral as 1,481 shares ended lower while 1,397 closed higher on the BSE.


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