Stock market updates on March 13: Investors turned poorer by Rs 13.5 trillion on Wednesday as bears prowled on Dalal Street, hammering equities. The benchmark S&P BSE Sensex and Nifty50 index fell over 1 per cent today, and the broader indices witnessed a fall of up to 5 per cent.
“Investors should focus on the sustained weakness in the broader market, particularly the small-cap segment. The excessive valuations in these segments, driven by the irrational exuberance of retail investors, has been a concern for many months now. But it has taken the strong message from the regulator Sebi to trigger a correction. Persistent selling, along with actions from mutual funds, indicate there is more pain ahead,” said VK Vijayakumar, chief investment strategist, Geojit Financial Services.
Here are the top reasons for Wednesday’s market fall:
Selling in broader markets: Market regulator Securities and Exchange Board of India (Sebi) has been scrutinizing flows into mid, and small-cap stocks amid a massive rally in the segment over the past few years.
On Monday, Chairperson Madhabi Puri Buch said there are pockets of froth in the market.
Declining close to 2 per cent for a second day, the Nifty Smallcap 100 hit an intraday low of 15,011, shedding 1,681 points, or 10.1 per cent, since logging an intraday peak of 16,692 on February 8. The index is still up 62 per cent in the past year.
Profit booking in large-caps: 25 of 30 Sensex stocks, and 43 of 50 Nifty stock were reeling under pressure on Wednesday. PowerGrid, and Coal India shed 7 per cent each; Adani Enterprises, and NTPC 6.8 per cent; Adani Ports 6.5 per cent; and Tata Steel 6 per cent.
That apart, ONGC, Titan, Hindalco, Bharti Airtel, L&T, Tata Consumer, Tata Motors, HUL, Hero MotoCorp, Axis Bank, IndusInd Bank, JSW Steel, Reliance Industries, Maruti Suzuki India, SBI, Bajaj Finserv, Wipro, TCS,Grasim, SBI Life, M&M, Divis Labs, and Bajaj Auto declined in the range of 1 per cent to 5 per cent.
“The market could be volatile for the week, with moves in both directions. 22,075 will be the immediate hurdle at bounce-back, while 22,180 is the next hurdle,” he said.
As far as Bank Nifty is concerned, Gour added if it slips below this, then a 50-DMA at around 46,500 is immediate support and a 200-DMA of 46,000 is a key support level. 9-DMA of 47,450 will be an immediate hurdle, while 48,000 is the key hurdle.
First Published: Mar 13 2024 | 1:40 PM IST