Traders turned cautious after Moderna CEO in an interview said vaccinations may gradually become less effective against the latest variant. WHO has also termed it as a variant of grave concern.
The 30-share pack Sensex fell 195.71 points or 0.34 per cent to close at 57,064.87. The index gyrated in nearly 1,120-point range. Its broader peer NSE Nifty declined 70.75 points or 0.41 per cent to 16,983.20.
“Indices started the session on a strong footing following the US President’s announcement ensuring that economic lockdowns are currently off the table. However, the optimism was quickly substituted with a sudden sell-off in the domestic market as global equities slipped into negative territory following Omicron experts’ advice to be cautious,” said Vinod Nair, Head of Research at Geojit Financial Services.
Market at a glance:
- Devyani International climbs 5% after Jefferies sees 75% upside
- Reliance Capital slumps 5% after RBI initiates insolvency proceedings
- IRCTC jumps 3% on rail ticketing collaboration plan with redBus
- Go Fashion sees stellar debut, surges 82%
- IPO watch: Star Health subscribed 10% so far
Among the bluechip names, Power Grid was the top gainer, rising 3.12 per cent. Shree Cements, Bajaj Finserv, Titan, Tata Consumer, SBI Life Insurance and Infosys were other gainers.
Tata Steel was the top loser in the Nifty pack, falling 4.01 per cent. Kotak Mahindra Bank, JSW Steel, Adani Ports, Bajaj Auto, IndusInd Bank, M&M, Bharti Airtel and Hero MotoCorp were others that ended in the red.
“Needless to say, the excessive news flow around the new Covid variant would keep the volatility high. Keeping in mind the scenario, it’s prudent to continue with hedged positions until the markets stabilise.”
Broader market indices ended higher, outperforming their headline peers. Nifty Smallcap gained 1.63 per cent and Nifty Midcap advanced 0.46 per cent. Nifty 500, the broadest index on NSE, ended down 0.06 per cent.
KEI Industries, UTI AMC, Birla Corporation, Navin Fluorine, REC and Indian Hotels were the top gainers from mid and smallcap indices, climbing in the range of 4-10 per cent.
Godrej Properties, Mphasis, Godrej Industries, Trident, Just Dial and Cyient were major losers from broader market space, falling in the range of 4-5 per cent.
Sectoral indices on NSE traded mixed. Nifty Metal was the biggest loser, down 1.94 per cent. Nifty Auto, Nifty Bank and Nifty Financial Services were among other losers. Nifty Realty was the top gainer, followed by Nifty IT.
Market breadth was in favour of gainers as 1,778 stocks ended in the green, while 1,471 names settled with cuts. As many as 158 securities hit 52-week highs, mostly from the smallcap space. Meanwhile, 277 names hit 52-week lows, mostly from the microcap space. About 285 stocks hit upper circuit limits and 275 lower circuit limits.
European markets were trading lower. London-based FTSE was down 1.27 per cent while Paris and Frankfurt declined 1.29 per cent and 1.37 per cent, respectively. In Asia, barring China and Taiwan, all markets closed in the red.
