Soon after a gap down opening the market started trading rangebound in the negative terrain. As the day progressed, a few desperate attempts were seen by the benchmarks to move above the baseline, backed by strength in Sensex heavyweight, Reliance Industries which reportedly entered into a joint venture with British oil major BP. However, the rallies failed as weakness in the Capital Goods, Auto and Banking space weighed heavily on the market. A fresh bout of selling was witnessed during the final hour and the benchmarks were dragged to the lowest point of the session. A mild pullback towards the end, was not enough to cover up the hefty losses made during the session. The negative sentiment among the European peers has further dampened the sentiment in the domestic arena.
In the sectoral front, the Capital Goods, Auto and Banking sectors were the worst hit during the session, declining by 2.12%, 1.93% and 1.85% respectively. However, the Oil&Gas space (+1.26%) remained strong throughout the session after sectorial heavyweight Reliance Industries surged 2.98%. Both the Nifty and Sensex traded with extreme weakness and despite of a mild recovery towards the end failed to recover the hefty losses. The US market remained closed overnight in observance of Presidents Day.
Among the Sensex pack, 25 stocks ended in negative while only 5 ended in the positive terrain. The overall market breadth also remained weak, as out of total 2,939 stocks traded on BSE, 1,713 stocks declined, whereas 1,125 stocks advanced and 101 stocks remained unchanged.
The BSE SENSEX was at 18296.16 down by 142.15 points or by 0.77% and NSE Nifty was at 5469.20 down by 49.4 points or by 0.90%. The BSE MIDCAP was at 6602.56 lower by 56.62 points or by 0.85%, while the BSE SMLCAP was at 8061.75 down by 59.51 points or by 0.73%. The BSE Sensex touched intraday high of 18457.90 and intraday low of 18187.33.
Gainers from the BSE Sensex pack were - Reliance Industries (2.98%), Reliance Communications (1.49%), Sterlite Industries (1.42%), Reliance Infrastructure (0.10%) and Tata Consultancy Services (0.04%).
Losers from the BSE Sensex pack were - Hero Honda Motors (3.36%), Larsen & Toubro (2.65%), HDFC Bank (2.59%), Jindal Steel & Power (2.48%) and Jaiprakash Associates (2.39%).
On the macroeconomic front, liquidity in the system might remain tight next week due to the rise in year-end demand. In order to counteract the liquidity crunch in the system, banks have increased their borrowings at the Reserve Bank of India's liquidity facility. According to a senior treasury executive with an associate bank of State Bank of India "We do not see much change next week. Borrowings at the liquidity adjustment facility (LAF) window are expected to remain above Rs 1, 00,000 crore." IDBI Gilts' weekly review report recorded that the liquidity crunch remained throughout the week ended February 18. However, the amount of net infusions decreased slightly on Friday. The quantity that was absorbed through LAF's reverse repo operations amounted to Rs 805 crore while the total liquidity injected in the system was Rs 1, 01,505 crore. Thus, net infusion stood at Rs 1, 00,700 crore as compared to Rs 1, 04,015 crore recorded Thursday. Although there was an increase in borrowings and a pressure on resources but the overnight interbank rates have remained stable at approximately 7%. According to da For the latest updates PRESS CTR + D or visit Stock Market news Today
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