Benchmark indices ended lower on Monday led by losses in capital goods, oil and gas and metal stocks. Sensex slumped 523 points to 71,072 and Nifty lost 166 pts to 21,616. BSE investor wealth fell to Rs 378.86 lakh crore. Capital goods, oil and gas and metal stocks were the top sectoral losers with their indices falling 1258 points, 716 points, and 756 pts, respectively on BSE.
IT and healthcare shares were the sole gainers with their BSE indices gaining 95 pts and 110 pts, respectively. Midcap and small cap indices fell 1038 pts and 1443 pts on BSE, respectively. Market breadth was negative with 1004 stocks ending higher against 2986 stocks falling on BSE. 89 shares were unchanged.
Ajit Mishra, SVP- Technical Research Religare Broking said, "Most sectors felt the heat wherein realty, metal, energy and banking were among the top losers. The sharp decline in the broader indices, midcap (-2.57%) and smallcap (-4.04%), further dented the sentiment. The banking index has retested its long term moving average i.e. 200 DEMA and others are also witnessing profit taking now. It would be difficult for Nifty to hold 21,600 in the prevailing scenario. We thus recommend maintaining shorts as well and using any pause or rebound to reduce longs. "
Tata Steel, NTPC, SBI, IndusInd Bank, ITC and Kotak Bank were the top Sensex losers falling up to 2.76 per cent. Wipro, HCL Tech, M&M, Infosys were the top Sensex gainers rising up to 2.26% on Monday. Of 30 Sensex stocks, 22 scrips ended in the red.
Vinod Nair, Head of Research, Geojit Financial Services said, "An uptick in exchange margin requirements caused a decrease in positions, primarily in mid and small caps. Aside from the pharma and IT sectors, selling was widespread, with notable struggles seen in PSU banks. The premium valuation gap between mid to large caps has notched to its all-time high,"
"Despite a robust economic forecast, corporate earnings are expected to slow due to moderated operating margins. It is going to be a challenge for the broad market to sustain the premium valuation. Large caps are predicted to excel amid consolidation," added Nair.
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