Volatility to remain high

The market ended with moderate losses after a highly volatile trading session. The BSE Sensex shed 134.32 points, or 0.37 per cent to settle at 36,444, while the Nifty 50 index lost 39.10 points or 0.36 per cent to close at 10,922.75. The market sentiments were hit as global stocks fell amid concerns on slowing global growth after IMF slashed its world economic forecast.

The selling in mid- and small-cap segment saw the BSE Mid-Cap Index losing 0.09 per cent and the Small-Cap losing 0.49 per cent. The market breadth was weak, as 958 shares rose and 1613 shares fell on the BSE. Among the sectoral indices on BSE, Basic Materials was down 1.21 per cent and Telecom was down 0.94 per cent.

Major losers among Sensex stocks were Vedanta (down 3.5 per cent ), Tata Steel (-3.13 per cent), Mahindra & Mahindra (-3.08 per cent), HCL Technologies (-2.18 per cent ), Bharti Airtel (-2 per cent), and Larsen & Toubro (-1.02 per cent). Kotak Mahindra Bank was up 1.92 per cent.

Technical view

Jayant Manglik, president, Religare Broking, said: “Benchmark indices declined on weak global cues as the IMF cut global growth forecast for 2019 and 2020. The Nifty touched an intra-day low of 10,864, but managed to close off the lows at 10,923, down 0.4 per cent.

“The market is likely to remain range bound given global headwinds in the form of uncertainty over acceptance of alternate plan for Brexit and global growth concerns. Further, volatility in crude oil price & rupee would keep the market participants on edge. However, on the domestic front, there have been no negative surprises on the earnings front so far which is encouraging. We expect stock-specific volatility to remain high.”

Market view

Vinod Nair, head of research, Geojit Financial Services, said: "The market has mirrored the downswing in global equities which was impacted on concerns over global economic growth. Investors are worried over governments’ ability to meet the fiscal target of 3.3 per cent of GDP in FY19, further dragging the sentiment. On the other hand, volatility may continue in the near-term due to risk of populist measures in the interim budget and lower tax collection. "

 ––Ashwin Punnen