Nifty will be under pressure until it regains 8,440
We had mentioned in Tuesday’s closing report that the NSE’s CNX Nifty may move sideways but a close below 8,480 may push the index lower. The 50-stock index opened Wednesday below this level. After a range bound session till 10.30am, the benchmark started moving lower and hit a six day (including today) low. Thereafter, Nifty tried to recover, but it was not successful and closed just off the day’s low.
India VIX rose 9.09% to close at 17.7900. NSE recorded a volume of 105.84 crore shares.
The continuous slide in the Chinese stock markets, crashing commodity prices and the stalemate in the Greece debt talks dampened investor sentiments, leading to Indian equity markets to close at lower levels on Wednesday.
The 30-scrip, S&P BSE Sensex closed 483.97 points or 1.72% down at 27,687.72 points. The Sensex touched a high of 28,031.45 points and a low of 27,635.78 points in the intra-day trade. The wider 50-scrip Nifty also closed deep in the red. It plunged 147.75 points or 1.74% at 8,363.05 points.
During Wednesday's intra-day trade, all 12 sector-based indices of the BSE closed the day's trade in the red.
The S&P BSE automobile, bank, metal, information technology (IT), oil and gas, healthcare, capital goods, fast moving consumer goods (FMCG), consumer durables and technology, entertainment and media (TECK) stocks came under intense selling pressure.
The S&P BSE automobile index plunged by 424.94 points, bank index crashed by 365.63 points, metal index plummeted by 357.35 points, IT index contracted by 155.43 points, and oil and gas index receded by 149.23 points.
The S&P BSE healthcare index fell by 121.99 points, followed by capital goods index which decreased by 88.45 points, FMCG index which declined by 76.29 points, consumer durables index edged-lower by 74.49 points and TECK index was down by 72.93 points.
The Sensex gainer during Wednesday's trade was: Hindustan Unilever, up 0.04% at Rs.924.
The major Sensex losers were: Vedanta, down 7.85% at Rs.146.10; Tata Motors, down 6.17% at Rs.405.15; Hindalco Industries, down 5.13% at Rs.101.75; Tata Steel, down 4.72% at Rs.283.40; and HDFC, down 3.54% at Rs.1,290.05.
All the Asian indices closed in the red. Among the Asian markets, Japan's Nikkei was down by 3.14%, China's Shanghai Composite Index crashed down by 6.14%, and Hong Kong's Hang Seng slumped by 5.84%.