JOIN USMarket in bear grip: Sensex nosedives 1,170 points; RIL tumbles over 4%
Stock markets - Sensex and Nifty - started the week on a weak note. The Sensex dropped 1,170.12 points to end at 58,465.89, down 1.96%. Nifty was also down 1.96% settling at 17,416.55.
Apart from Bharti Airtel, Asian Paints and Powergrid, all other Sensex companies ended in the red. The Bajaj twins were the biggest losers on Monday. While Bajaj Finance was the bigger loser - down 5.74%, Bajaj Finserv fell by 4.69%.
Stock market analysts say that a lot of segments in the market were witnessing profit booking as valuations are high.
“Indian markets opened on a negative despite mixed Asian market cues as China on Monday kept the one-year Loan Prime Rate (LPR) unchanged. During the afternoon session, markets further drifted lower and traded at the day’s lowest amid a resurgence of coronavirus outbreaks in Europe and some other regions. Also, adding to growing speculation, traders feared that central banks could have to tighten monetary policy quicker to tame a spike in inflation”, said Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers.
Analysts also point out that markets can dip further.
“Indications are pointing towards further slide in the Nifty and the next major support is at the 17,100-zone.”, Ajit Mishra, VP - Research, Religare Broking Limited.
Gaurav Garg, Head of Research, Capitalvia Global Research Limited, says that there could be selling pressure till 57,900.
The rupee depreciated against the dollar ending at 74.40, down 0.2% from 74.24 in the previous session.
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