Benchmark indices extended their losing streak to the sixth straight session on June 17, with the Sensex declining 135 points in choppy trade amid mixed global markets, unabated foreign fund outflows, and rising crude oil prices.
The Bombay Stock Exchange (BSE) benchmark declined 135.37 points or 0.26 percent to settle at 51,360.42. During the day, the benchmark faced volatility and tanked 574.57 points or 1.11 percent to its one-year low of 50,921.22. The NSE Nifty went lower by 67.10 points or 0.44 percent to end at 15,293.50.
From the Sensex pack, Titan, Wipro, Dr. Reddy’s, Asian Paints, Sun Pharma, PowerGrid, Larsen & Toubro, UltraTech Cement, Maruti, TCS, and Hindustan Unilever were the biggest laggards. While, Bajaj Finance, Bajaj Finserv, Reliance Industries, and ICICI Bank were among the gainers.
On the flipside, Titan Company, Wipro, HDFC Life, Shree Cement, BPCL, Dr. Reddy’s Labs, and Asian Paints were the top drags, down up to 6 percent.
Sectorally, the Nifty Pharma index was the worst hit, down over 2 percent on the NSE, while the Nifty Bank added the most, up 0.75 percent.
In the broader markets, the BSE MidCap and SmallCap indices underperformed the benchmarks and slipped up to 0.9 percent.
Global markets
European markets were higher on Friday but remained on course for a bruising week as global stocks reacted to policy tightening from major central banks. The pan-European Stoxx 600 gained 0.8 percent in early trade after an uncertain open.
On Wall Street, futures linked to headline indices advanced between 0.8 percent and 1.2 percent. Earlier in Asia, Nikkei shed about 2 percent, Kospi fell 0.43 percent, while Hang Seng gained 1 percent.
Nifty remained volatile before closing around the previous low.
With central banks’ policy tone pointing towards continued rate hikes of higher magnitude, we can expect FIIs to maintain their selling spree.
The domestic market will continue to trade with high volatility in the near term, however, the ongoing corrections are opportunities in disguise for medium to long-term investments.
Big Bull Loss
The luxury products company and one of the ace investors Rakesh Jhunjhunwala’s top portfolio stocks Titan (NS: TITN ) was the worst performer on benchmark equity indices Nifty50 and Sensex, tanking over 7% and hitting a nine-month low on Friday while closing at 6.1% lower.
The mega-cap stock tumbled for the second consecutive session on Friday and tanked 7.7% in the past two days. It has corrected over 30% from the all-time high recorded on March 21.
The star investor Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala hold a total of 4,48,50,970 equity shares of the Tata Group company or a 5.05% stake, as of March 31, 2022.
Market experts believe that Titan’s stock crash is due to its weak Q4 FY22 results coupled with a slowing economy, interest rate hikes globally, overall weakness in domestic and global markets, and aggressive monetary tightening.
