Taking Stock: Market loses 1% on weak global cues but FY21 best ever in absolute terms

Today's Market

After closing strong in the previous session, the benchmark indices lost a percent on the last day of the financial year 20-2021. At close, the Sensex was down 627.43 points, or 1.25 percent, at 49,509.15 and the Nifty was 154.40 points, or 1.04 percent, lower at 14,690.70.

“Weak cues from across the globe forced the domestic market to shed yesterday’s optimism. US markets had a weak close after the US bond yield reached near 14-month high level, while European and Asian markets followed the trend. Private banks were the sectorial laggards due to selling seen in heavyweights. However, midcap and smallcap stocks remained in positive territory,” said Vinod Nair, Head of Research at Geojit Financial Services.

Among sectors, IT, bank, energy and infra sectors fell 0.4-1.7 percent, while the PSU bank index added over a percent. BSE Midcap and Smallcap indices ended in the green.

HDFC, HDFC Bank, Tech Mahindra, Power Grid Corp and Coal India were among major losers on the Nifty, while gainers were GAIL, Grasim Industries, Bajaj Finserv, UPL and ITC.

The weak performance of the day notwithstanding, FY21 was the best fiscal year ever in absolute terms with the Sensex rising 20,040.66 points and Nifty adding 6,092.95 points.

In percentage terms, it was the best in the last 11 years. All the sectoral indices gave positive returns this fiscal.


Stocks & sectors

On the sectoral front, BSE bank and power indices shed a percent each, while realty and FMCG indices added 1 percent each during the day.

Among individual stocks, a volume spike of more than 100 percent was seen in HPCL, Balkrishna Industries and IDFC First Bank.

A short buildup was seen in the IDFC First Bank, HDFC Bank, and Power Grid, while a long buildup was seen in Dr Lal PathLabs, Vodafone Idea and Mphasis.

More than 100 stocks, including Tata Steel, JSW Steel, Grasim Industries, hit a fresh 52-week high on the BSE.

market snapshot 3103

Technical View

The Nifty formed a bearish belt hold candle and also formed an inside bar as it traded inside the trading range of the last session.

“The Nifty has to cross and hold above 14,750 zones to witness an up move towards 14,900 and 15,000 zones, while on the downside, support exists at 14,600 and 14,500 levels,” said Chandan Taparia of Motilal Oswal Financial Services.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.