The domestic benchmark indices snapped a two-session gaining streak on Monday, weighed down by losses in power and FMCG stocks amid rise in commodity prices, especially crude oil. The subdued cues from global peers amid the ongoing Russia-Ukraine war and fear of Moscow default on bond payments due this week also weighed on market sentiments.
Earlier today, the BSE benchmark Sensex opened a tad higher but soon slipped into negative terrain. The 30-share Sensex ended 571 points, or 0.99%, lower at 57,292 levels. In a similar trend, the 50-share Nifty closed at 17,118, down 169 points or 0.98%.
Meanwhile, the broader market ended on a mixed note, with the BSE midcap index settling 0.68% lower. Bucking the trend, the BSE smallcap index closed 0.38% higher.
The overall market breadth on the BSE was negative, with 2,088 shares falling of a total of 3,932 traded stocks. As many as 1,670 shares advanced and 174 were unchanged.
“With no significant improvement in the tensions between Russia & Ukraine and uncertainty in the 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 a rise in bulk diesel prices & inflationary pressure is bending the domestic market,” says Vinod Nair, Head of Research at Geojit Financial Services.
Top gainers and losers
Out of the top 30 shares on the BSE Sensex pack, 25 ended in red while the remaining settled in positive terrain. Power Grid Corporation, the state-run power transmission company, was the biggest loser with a 2.9% loss. The other top laggards include Asian Paints, UltraTech Cement, Nestle India, and Kotak Mahindra Bank, which fell up to 2.85%.
On the gaining side, pharma major Sun Pharmaceutical Industries topped the chart by rising 0.4%. Among others, HDFC Bank, Maruti Suzuki India, Titan Company, and NTPC ended with a marginal gain.
Power, FMCG lead fall
Among sectors, power and FMCG were among the worst performers, while metal and healthcare gained the most. The BSE power index closed 1.81% lower, led by index heavyweights such as Adani Transmission, Power Grid Corporation of India, Tata Power Company, Adani Green Energy, and Siemens.
The BSE FMCG index dropped 1.46%, weighed down by losses in Ruchi Soya Industries, Britannia Industries, Future Consumer, Marico, and Gujarat Ambuja Exports.
Global stocks mixed amid Ukraine concerns
Shares in the Asia-Pacific region ended mixed today, while European stocks edged higher in early trade on Monday. Investors remained focused on developments in the Russia-Ukraine war amid peace talks between the two countries, which have failed to reach any conclusion so far. Traders also evaluated a rise in Covid-19 cases in Europe as well as in China.
In the Asia-Pacific region, Hong Kong’s Hang Seng Index emerged as the worst performer with a 0.9% loss. South Korea’s KOSPI dropped 0.77%, ASX 200 index in Australia fell 0.2%, and Thailand’s SET Composite shed 0.3%.
Bucking the trend, the Straits Times Index in Singapore rallied 0.75%, and Taiwan's Weighted index added 0.6%. In mainland China, the Shenzhen component climbed 0.4%, while the Shanghai Composite rose 0.1%. Japan’s benchmark index Nikkei 225 was closed for a holiday.
Meanwhile, European markets started the week on a subdued note with positive bias. Germany’s DAX gained 0.02% and the U.K.’s FTSE 100 index surged 0.5% in early deals. France’s CAC index climbed 0.05%, while Spain’s IBEX 35 added 0.12%.
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