Heavy offloading in RIL snaps 2-day recovery

Mumbai: Equity benchmark Sensex declined 290 points in a volatile session to settle below the 58,000 mark on Thursday due to a sell-off in banking, financial and IT stocks amid a mixed trend in global equities. Besides, heavy selling in index heavyweight Reliance Industries added to the pressure, traders said. After rallying for two straight days, the 30-share BSE Sensex fell 289.31 points or 0.50 per cent to settle at 57,925.28, with 16 of its constituents posting losses. During the day, the index witnessed a high of 58,396.17 and a low of 57,838.85. The broader NSE Nifty dipped 75 points or 0.44 per cent to end at 17,076.90, with 30 of its scrips ending in the red.

"Markets traded volatile and lost nearly half a per cent amid mixed cues. After the initial downtick, the Nifty recovered gradually in the first half, however, fall in the heavyweights around 17,200 level again pushed the index in the red. Consequently, it closed at 17,076.90 level. Continued pressure in the IT majors and profit-taking in banking and financial counters turned the tone negative," said Ajit Mishra, V-P (technical research), Religare Broking Ltd.

"Although the Fed's decision to increase rates by 25 basis points was in line with expectations, concerns were raised by the US Treasury Secretary's statement that blanket insurance for all deposits was not being considered. The domestic market attempted to recoup its initial losses with the help of favourable US futures as the Fed hinted at its plan to pause rate hikes sooner. However, the recovery was short-lived due to a sluggish start in the European market led by a 50 bps hike by the Swiss National Bank," said Vinod Nair, head (research) at Geojit Financial Services.

"Investors felt that further increases, along with rates remaining higher for longer, are likely to apply increased pressure on the global economy this year. Most Asian stock markets ended in the positive, while European markets were trading lower on March 23 as markets weighed the prospect of a less hawkish Federal Reserve against increased economic headwinds in the coming months," said Deepak Jasani, Head of Retail Research, HDFC Securities.

"Domestic equities swing between gains and losses after US Fed continued with its rate hike trajectory. Statement by Treasury Secretary to not provide blanket insurance to all the banks distraught the sentiments. FIIs too have been consistent sellers for the last few days, which could keep the market under pressure," said Siddhartha Khemka, head (retail research), Motilal Oswal Financial Services Ltd.

Among indices, realty, bankex, IT, financial services, tech and consumer discretionary were the biggest laggards. FMCG, healthcare, telecommunication, utilities and power were among the gainers. As many as 2,053 firms declined, while 1,452 advanced and 129 remained unchanged. State Bank of India was the biggest loser in the Sensex pack, shedding 1.69 per cent, followed by Asian Paints, Kotak Mahindra Bank, HCL Technologies, Reliance Industries, Wipro, IndusInd Bank, Infosys, Power Grid and HDFC twins.