Muhurat Trading: Sensex Falls Nearly 200 Points, Banking Stocks Drag

In the year to Diwali 2017, the Sensex gained 16 per cent and the Nifty 18 per cent. Small-cap and mid-cap indices rose even more.

30 Shares
EMAIL
PRINT
COMMENTS
Muhurat Trading: Sensex Falls Nearly 200 Points, Banking Stocks Drag

Analysts expect the domestic stock markets to give strong returns for Samvat 2074

Sensex fell sharply on Thursday at the end of a special one-hour Diwali trading session, also known as Muhurat trading, to mark the beginning of Samvat year 2074. Sensex, the BSE benchmark index, fell 194 points to close at 32,389 while Nifty settled at 10,146, down 64 points. Sharp losses in metal and banking stocks weighed on the market. The banking index on BSE fell 1.2 per cent while the metal index declined 0.90 per cent. A slide in global markets also hurt the sentiment. The Wall Street was down in early trade while major European markets were mostly lower today.

Among the frontline banking stocks, Kotak Mahindra Bank and ICICI Bank fell over 1.5 per cent. Other top Sensex losers included Wipro, ONGC and Tata Motors. Bharti Airtel extended its recent streak of gains by rising 2 per cent.

Investors have reaped strong returns from Diwali 2016 to Diwali 2017. During this period, the Sensex gained 16 per cent and the Nifty 18 per cent. Small-cap and mid-cap indices rose even more. Despite demonetisation and GST hurting economic growth in June quarter, a key factor supporting the rally in domestic stock markets has been record inflows into equity mutual funds. Optimism earnings recovery and a pickup in economic growth also supported the rally. A global equity rally also lifted the domestic sentiment.

Comments
"The Indian economy has undergone major structural changes in the last one year, starting with demonetisation in November 16, which was immediately after Diwali (which was in end-October 2016), followed by the implementation of GST in July 17, both of which have led to some disruptions on the demand and supply side," ratings agency Care Ratings said in a report.

Analysts expect the domestic stock markets to give strong returns for Samvat 2074. Domestic brokerage Kotak Securities has a target of 11,850 for Nifty while on the downside it sees 9,400 to act as a major support for the market. Among the sectors, Kotak remains positive on energy, metal and cement stocks.

................................ Advertisement ................................

................................ Advertisement ................................

................................ Advertisement ................................