Sensex Slips 125 pts Dragged By Metal, PSU Bank Stocks

The Indian equity markets were off record highs and closed lower mainly due to profit taking after a sharp surge in heavyweight index stocks on Friday, September 17. The Midcap and Smallcap indices also witnessed volatility and closed lower by a per cent each.

The Sensex slipped 125.27 points to end the week at 59,015.89, while the Nifty-50 closed lower by 44.35 points at 17,585.15. The 30-share pack Sensex witnessed 18 declines and 12 advances at market closing on Friday. Shares of Reliance Industries contributed the most in the fall as the stock slipped over one per cent, while Tata Steel and SBI fell over three per cent and stood as the top index losers. On the flipside, Kotak Mahindra Bank was the top gainer, advancing more than five per cent or Rs 100.

Amid selling across the board, the broader markets declined majorly after witnessing positive momentum in the entire week. The BSE Midcap and Smallcap closed lower by a per cent each in the intraday session on Friday. In the Midcap space, IDBI Bank and Oil India were the top losers, falling more than six and five per cent, respectively, whereas, Max Healthcare (-6.17 per cent) and Indiabulls Hsg( -5.44 per cent) were the top drags in the Smallcap space.

Among the sectors, except for Banking and Financial names, all other sectors ended in the red territory. The Metal sector and the PSU Bank (-2.96 per cent) sector were the worst hit in the intraday trade. The Nifty Metal index fell more than two per cent, dragged by shares of SAIL, MOIL, and Tata Steel, as they declined over three per cent each.

However, the markets in the entire week have posted solid gains and have managed to scale new highs in the previous three trading sessions which is a big positive for the near term movement, said experts.

Tracking the weekly performance, the key index Nifty-50 has added 1.24 per cent, while the BSE Sensex has gained 1.22 per cent backed by advances in Banking and IT counters. The Nifty Bank index has advanced as much as there per cent in the weekly session, while the Nifty IT and Auto pack managed to add over two per cent each.

On the flipside, the Nifty Metal space, which has witnessed a major upside in the previous few months, remained under pressure during the current week as the index posted a decline of about one per cent.

Moving further, the bulls will continue their grip on markets and supportive cues from home which are boosting the economic activities and positive flows from the FIIs will drive the markets to new levels in the upcoming sessions, as per market experts.

Narendra Solanki, Head, Equity Research - Fundamental, Anand Rathi Shares & Stock Brokers, said, "Controlled Covid cases domestically and strong pick up in vaccination drive has led to healthy pick-up in economic activities."