Sensex breaks over 1,000 points: Key factors behind market fall

New Delhi: A gloom descended on Dalal Street on Friday as officials detected a new mutation of the coronavirus threatening the recovery made so far, giving bears enough ammunition to send benchmark indices tumbling .

Scientists said the variant found in South Africa may be able to evade an immune response. British officials think it is the most important version ever, worry that it may oppose vaccines and have hurried to impose a travel ban on South Africa.

VK Vijayakumar, Chief Investment Strategist said, “The new headwinds are the latest version of the virus detected in South Africa, Botswana and Hong Kong. This is the dominant sentiment negative for the market with continued selling by FIIs for the seventh day in a row.” Geojit Financial Services. “However, an important point to note from a market perspective is that the recent surge in COVID cases in Europe has not affected the markets there. As valuations remain high, investors need to be cautious.”

how are bluechips
The benchmark indices declined after opening in the red mark. At 9.59 am, the BSE Sensex closed at 57,747, down 1048 points or 1.78 per cent. The NSE benchmark Nifty fell 316 points or 1.80 per cent to 17,220.

“On the technical front, the key resistance levels for Nifty 50 are 17,620 followed by 17,700 and further downside 17,400 and then 17,270 may act as strong support. The key resistance and support for Bank Nifty are 37,540 and 37,150 respectively,” said Mohit Nigam, Head – PMS, Hem Securities.

Dr Reddy’s Labs was the top gainer in the 50-share Nifty, up 1.29 per cent. Cipla and Sun Pharma were among the other beneficiaries.

ONGC topped the pack with a fall of 2.97 per cent. Those trading in the red included Tata Motors, Kotak Mahindra Bank, Tata Steel, Maruti Suzuki, SBI, Hindalco Industries and Bajaj Finserv.

market driving factors

New covid version: South African officials announced that they had detected a new variant of the novel coronavirus with a “very unusual constellation” of mutations, with the center asking states to rigorously test and test travelers arriving from or transiting from the three countries. in which the version was confirmed. – South Africa, Botswana and Hong Kong.

More lockdowns: European countries expanded COVID-19 booster vaccinations and tightened restrictions overnight. Slovakia announced a two-week lockdown, the Czech government would close the bar early and Germany passed the threshold of 100,000 COVID-19-related deaths.

Yields drop: Treasury moves were also bullish after the Thanksgiving holiday and yields quickly pulled back some of the week’s gains. The benchmark 10-year yield fell nearly 6 basis points to 1.5841 per cent.

Tata Power, M&M 5 stocks could fall up to 54%, says Jefferies

potential money destroyer

After a spectacular rally, the fundamentals of some companies are suggesting that their stocks have taken too much leverage for their own good. Revenue and margin may not keep up with the uptick in share prices, therefore, they are likely to fall now. This has been mentioned by the stock analysts of Jefferies India in their coverage section. The brokerage house has suggested five names, which may fall up to 54 per cent from the current level.

broad market
Broader market indices were trading lower in the morning trade, outperforming their major peers. Nifty Smallcap lost 0.69 per cent and Nifty Midcap lost 1.13 per cent. Nifty 500, the broadest index on the NSE, was down 1.24 per cent.

Dr Lal Pathlabs, Fortis Healthcare, Aditya Birla Capital, Trident, AstraZeneca and Thyrocare Technologies were among the gainers, while PVR, DeltaCorps, SpiceJet, Godrej Properties, National Aluminum and Indian Hotels were under selling pressure.

global market
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.3 per cent, the sharpest decline since September. Casino and beverage stocks sold off in Hong Kong, and travel stocks declined in Sydney.

Japan’s Nikkei and US crude futures fell 2.5 per cent and US crude oil futures fell nearly 2 per cent amid fears of fresh demand.

Global stocks have been selling in Asia since the start of October, in what is on course for their worst week. The Dow Jones futures were down 1 per cent, while the FTSE futures and the Euro STOXX 50 futures each lost about 1.4 per cent.


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