Market remained under pressure on May 11, with equity benchmarks the Sensex and the Nifty extending the losses into the fourth consecutive session.
If we exclude the flat close of May 5, then the losing streak of the market extends into the eighth consecutive session.
Investors have been selling off Indian equities amid concerns of aggressive rate hikes and geopolitical tensions. The April US inflation data will be out later today which will indicate how the rate hikes may occur in the near future. India's inflation data will be out on May 12.
Sensex opened 180 points lower at 54,544.91 and touched intraday high and low of 54,598.55 and 53,519.30 respectively.
The 30-share pack closed 276 points, 0.51 percent, lower at 54,088.39 with 10 stocks in the green and 20 stocks in the red. Nifty50 closed 73 points, or 0.45 percent, lower at 16,167.10.
The BSE Micap index closed 0.46 percent lower but the smallcap index suffered more loss as it closed 2.23 percent down.
"Indices displayed extreme volatility today ahead of the CPI & IIP data this week. While we did see a sharp recovery in Indices during afternoon trade, the market breadth was very weak with several stocks in the broader market taking a big knock-on selling pressure as the smallcap index lost more than 2 percent today," said S Ranganathan, Head of Research at LKP securities.
Axis Bank (up 1.92 percent), IndusInd Bank (up 1.37 percent), HDFC (up 0.92 percent), Kotak Mahindra Bank (up 0.73 percent) and HDFC Bank (up 0.50 percent) ended as the top ginaers in the Sensex index while Larsen & Toubro (down 2.34 percent), Bajaj Finserv (down 2.26 percent), Bajaj Finance (down 2.08 percent), Power Grid (down 1.99 percent) and NTPC (down 1.71 percent) ended as the top laggards.
As many as 274 stocks, including Nestle, Wipro, Amara Raja Batteries, Bajaj Consumer Care, Glenmark Pharmaceuticals, Dabur and Can Fin Homes, hit their 52-week lows on BSE.
The overall market capitalistion of BSE-listed firms dropped to ₹246.32 lakh crore from ₹248.43 crore in the previous session, making investors poorer by ₹2.11 lakh crore in a single day.
"The market turned volatile waiting for the release of April US inflation data, which is expected to cool down marginally. Inflation will continue to be elevated but the chance of major reactions is low because it has been factored in by the markets. The major determinant for market direction would be the pace of decline in inflation in response to the Fed measures," said Vinod Nair, Head of Research at Geojit Financial Services.
"Participants are closely eyeing the US inflation data for cues and we will see the reaction in early trades on May 12. Though the Nifty index has rebounded after penetrating the crucial support zone of 16,000 for a brief, we believe banking holds the key to further rebound. Keeping all in mind, we recommend keeping a cautious stance and suggest preferring hedged positions," said Ajit Mishra, VP - Research, Religare Broking.
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