Market Under Huge Volatility As Game Of Thrones Begins; Nifty 800 Pts Down

After an early celebration on Dalal street in the last session the Indian market traded with a sharp fall in the morning session in the Tuesday trading session. Market turned sceptical as the election outcome fluctuated.  

In the early trade the National Stock Exchange (NSE) Nifty 50 index traded 3.55 per cent or 815 points lower at 22,414, whereas the S&P Bombay Stock Exchange (BSE) Sensex also witnessed a sharp fall at 75,347 levels with 1,142 points or 1.44 per cent loss after the opening bell. 

Nifty Moves

In the Nifty 50 index, merely 2 stocks were able to trade in green, while 48 stocks were dragged in the red territory with massive fall.  

In the 50-stocks index, last session winner Adani stocks tumbled the most among the peers. Adani Enterprises dropped more than 8 per cent, while Adani Ports slumped more than 7 per cent. State-run Coal India, Power Grid and NTPC slipped more than 6 per cent. 

Additionally, ONGC and SBI also fell more than 5 per cent. 

Conversely, FMCG stocks, Hindustan Unilever and Britannia traded in the green territory. 

Analyst Note 

"Yesterday's strong FII inflow number was commendable, but we expect the next triggers to be the final tally which will contribute to political continuity and stability, then the cabinet composition and then the Union Budget expectations. Valuations are not cheap and we see froth in the markets, which could lead to some selling later in the week.," said Ajay Bagga, Market Expert.

He added, "Markets have given up more than the gains of Monday on the back of lower-than-anticipated early trends for NDA. These are still very early trends and markets will wait for more clarity by the afternoon post the initial sell-off."

"Technically, as long as the index is trading above 23,000, the bullish momentum is likely to continue. On the higher side, the index may rise to 23,500, 23,800, or even 24,000 levels. On the other hand, if the index falls below 23,000, it might correct back to 22,800 levels,” said Shrikant Chouhan, Head of Equity Research, Kotak Securities.

Sectoral Movement

In terms of sectoral performance, Nifty Bank slipped 3.6 per cent, whereas Nifty PSU Banks plummeted more than 6 per cent.

Metal also lost more than 4 per cent followed by more than 2 per cent loss in Auto. However, IT, FMCG and Pharma witnessed a comparatively less fall of less than 1 per cent. 

The more domestically focussed indices, mid-cap and small-cap shredded 3.3 per cent and 3.4 per cent gain respectively.