The stock markets erased all the opening gains after a second session selloff led by RIL, HDFC Bank, HDFC and large cap ITs. A sharp movement was seen in some PSU stocks with PNB gaining 8.5 percent. A closing below 14,500 is slightly negative for the markets and markets can test 14200 levels again, said Mohit Nigam, Head, PMS, Hem Securities. Strong positive results on the corporate front are protecting the downside currently, he said.
The benchmark indices fell sharply in the last one hour before close of trading session. Sensex plunged 465 points, while the broader Nifty50 fell by 137 points.
“With lot of companies to release their quarterly earnings on Tuesday, the investors would closely watch these companies and may invest further at the right time. The banks performed pretty well and were the top gainers”, said Abhishek A Rastogi, Partner at Khaitan & Co.
The benchmark indices fell for the second times in three days on Tuesday (May 4), following concerns over FPI selling in the recent past and further action expected to combat the COVID situation, said. Deepak Jasani, Head of Retail Research, HDFC Securities. Volumes on the NSE were higher than recent averages suggesting that the buying by domestic institutions was subdued while Retail and HNI started to take profits as is evident from the negative advance decline ratio. Among sectors, all ended in the negative except utilities, capital Goods and Oil and Gas. The losing sector stocks were from healthcare, telecom and consumer durables.
Wall Street brokerage Goldman Sachs has lowered its estimate for India's economic growth to 11.1 percent in fiscal year to March 31, 2022, as a number of cities and states announced lockdowns of varying intensities to check spread of coronavirus infections.
Sumeet Bagadia, Executive Director, Choice Broking, said, "On the technical front, the Index has faced resistance from the Middle Band of Bollinger & 50-Days Moving Average which points out weakness in the counter. Furthermore, Momentum Indicator Stochastic is showing negative crossover, which further adds weakness in the index. At present, the index has a support at 14400 levels while an upside resistance comes at 14,700 levels."