Domestic equity benchmarks the Nifty 50 and the Sensex closed lower on Monday, February 12, led by banking and financial heavyweights, ahead of key macroeconomic data and mixed global cues.
India’s consumer price index (CPI)-based inflation or inflation rate for January, as well as the index of industrial production (IIP) data for December, are set to be released today.
Meanwhile, major global peers were mixed as investors awaited US inflation data on Tuesday, British inflation data, and eurozone GDP on Wednesday.
While most major Asian markets were closed for the holidays, European markets were mixed as the Sensex closed.
The domestic market fell sharply as cautious sentiment prevailed and investors reduced their expectations for the timing of potential Fed rate cuts.
The Nifty 50 closed 166 points (0.76%) lower at 21,616.05, while the Sensex fell 523 points (0.73%) to 71,072.49.
The Sensex index was dragged down by shares of ICICI Bank, ITC, HDFC Bank, and SBI.
The mid and smallcap indices experienced greater losses. The BSE Midcap index fell 2.62 percent, while the Smallcap index dropped 3.16 percent.
The market capitalization (mcap) of BSE-listed firms decreased to nearly ₹379 lakh crore from ₹386.4 lakh crore in the previous session, resulting in a loss of approximately ₹7.4 lakh crore for investors in one session.
Top Nifty 50 gainers today
Only 16 stocks in the Nifty 50 index finished in the green today, with Dr Reddy’s Laboratories (up 2.68%), Apollo Hospitals Enterprise (up 2.60%), and Divi’s Laboratories (up 2.28%) among the top gainers.
Top Nifty 50 laggards today.
Coal India (down 4.80%), Hero MotoCorp (down 4.27%), and BPCL (down 3.89%) were the top laggards.
sectoral indices today.
Except for the Nifty IT (up 0.79%), Healthcare (up 0.54%), and Pharma (up 0.28%), all sectoral indices ended in negative territory.
The Nifty Media index fell 4.46 percent, while the PSU Bank index dropped 4.43 percent. Nifty Realty (down 2.97%), Oil & Gas (down 2.62%), and Metal (down 2.40%) all finished with significant losses.
The Nifty Bank and Private Bank indices fell 1.65 and 1.66 percent, respectively.
Expert perspectives on markets
“An increase in exchange margin requirements led to a decrease in positions, particularly in mid and small caps. Aside from the pharmaceutical and information technology sectors, selling was widespread, with PSU banks particularly struggling. The premium valuation gap between mid to large caps has reached an all-time high. Despite a strong economic outlook, corporate earnings are expected to slow due to narrower operating margins. The broad market will face challenges in maintaining the premium valuation. Vinod Nair, Head of Research at Geojit Financial Services, predicts that large-capitalization companies will thrive amid consolidation.
Technical views on the Nifty 50
“The Nifty fell further following a consolidation breakdown on the hourly chart, indicating a rise in pessimism. The daily chart shows the index forming a lower top, indicating a decline in bullish sentiment. The momentum indicator confirms this bearish outlook, displaying a crossover. The Nifty may remain on the rise as long as it falls below 21,850.
