Sensex, Nifty Enter Correction Zone After 10% Drop From Peak: Market Wrap
Sensex closed 398 points down, or 0.69%, at 57,527.10, while the NSE Nifty 50 ended 132 points lower, or 0.77%, at 16,945.05.
Indian equity benchmarks ended lower in trade on Friday after a volatile session following weak Asia and U.S. trade that was sparked by a sell-off in banks and a rally in information technology services stocks.
The headline indices fell for the third consecutive week, declining less than 1% in trade.
The benchmarks are down nearly 10% from their all-time highs touched in December of last year, suggesting the market is a correction zone.
A stock market correction describes a specific fall in value of at least 10% (but less than 20%) from a recent stock market high. A bear market is usually defined as a decline of 20% or greater.
The S&P BSE Sensex was 9.10% lower, while the NSE Nifty 50 was 9.93% down from its previous high.
European and Asian markets fell whereas U.S. equity futures erased gains. Financials were among the worst performing sectors on MSCI Inc.'s Asia-wide index.
Treasury Secretary Janet Yellen clarified to U.S. lawmakers that the government would be prepared for further steps to protect deposits if needed. It came two days after she said the government was not considering a blanket deposit insurance to stabilise the banking system—comments that triggered a sell-off
The Sensex closed 398 points down, or 0.69%, at 57,527.10, while the Nifty was lower by 132 points, or 0.77%, at 16,945.05.
ITC Ltd., HDFC Bank Ltd., ICICI Bank Ltd., Tata Steel Ltd., Axis Bank Ltd., Bajaj Finserv Ltd., State Bank of India, Bajaj Finance Ltd., Larsen and Toubro Ltd. and Reliance Industries Ltd. were negatively adding to the change in Nifty.
Most of the Adani Group stocks—except Adani Green Energy Ltd., Adani Transmission Ltd. and Adani Total Gas Ltd.—declined.
The broader market indices ended lower in trade; the S&P BSE MidCap was down 1.25%, while S&P BSE SmallCap ended lower by 1.37%.
All the 19 sectors compiled by BSE Ltd. declined, with S&P BSE Realty and S&P BSE Metal declining the most.
The market breadth was skewed in the favour of sellers. About 1,308 stocks rose, 2,019 declined and 139 remained unchanged on the BSE.
The headline indices declined for the third successive week. Nifty logged weekly losses of 0.91%, while Sensex declined 0.80% in trade this week.
Indices had ended lower in trade last week, with Sensex declining 1.94%, and Nifty 1.80%.
Most of the sectors declined in trade this week, with Nifty Realty and Nifty Metal being the top losers. Nifty Pharma and Nifty FMCG were the only two sectoral gainers this week.
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