Tag: market volatility

At close, the Sensex is down 1491 points or 2.74% at 52842.75, and the Nifty was down 382 points or 2.35% at 15863.15, as the US and European Union mulled boycotting importing oil from Russia. Consequently, fears of tighter oil and gas supplies, higher inflation, and, thus, faster-than-expected rate hikes by global central banks hit investor sentiment. Bharti Airtel, HCL Tech, Infosys, ITC, and Tata Steel were the top gainers in the Sensex pack.,ONGC, Hindalco, Coal India, UPL, Cipla, ITC, NTPC, and JSW Steel were the additional gainers on the Nifty. On the downside, IndusInd Bank, Maruti Suzuki, Bajaj Finance, Axis Bank, Britannia, Bajaj Finserv, Tata Motors, Ultratech Cement, ICICI Bank, SBI, Hero Moto, HDFC, L&T, HUL, RIL, and HDFC Life were the losers in the Sensex pack.The BSE MidCap and SmallCap indices closed 2.2 percent lower each. Sectorally, indices of rate-sensitive sectors such as Auto, Realty, Bank, Financial Services fell between 4 and 5.5 percent. Read more

The IPO of LIC of India is set to be delayed into the next financial year amid market swings triggered by the Russia-Ukraine crisis, according to some sources. Bankers and officials are preparing to shift the listing of the state-run insurer to after the current fiscal year, which ends in March, as per the source. A formal announcement could be expected this week or next, they added. LIC’s underwriters have seen muted interest during early meetings with potential anchor investors, according to the people. Many fund managers have been wary of making major commitments amid the market volatility, the people said. Read more

The Indian benchmark indices looked set to extend their fall to the third day in a row amid a host of weak macro cues. Also, volatility could remain high on account of monthly F&O expiry. At 8.15 am, SGX Nifty was trading 50 points down at 17,655. The US markets traded with caution on Wednesday amid crude oil disruptions, inflation, and ongoing debt ceiling debate. Overnight, the Dow Jones and S&P 500 index bounced back a wee bit in green, but Nasdaq however, ended 0.3 percent lower. This morning, the Asian markets are trading on a mixed note. Shanghai and Straits Times are up, while Nikkei and Hang Seng are down.

The mid and small-cap indices, which underperformed large-caps until early 2020, have covered lost ground, gaining 73 percent and 104 percent, respectively, in the last year. “The economy is likely to see a cyclical upturn which makes us feel that the outlook for the broader market is likely to be good going forward. However, the euphoric rise in many poor-quality small-cap names driven by higher retail participation is a cause for concern,” say experts. On aggregate, the entire universe of Flexi cap schemes, which invest across market capitalisations, had 71.5 percent of their assets invested in large caps, 23.4 percent in mid-caps, and 5 percent in small caps as of May 31, data. Read more

The SEBI has decided to crack down on excessive volatility by imposing several measures, which will impact traders as well as institutional investors. In particular, speculators in stock futures will have to cut down exposures as the market-wide position limit (MWPL) has been reduced to 50 percent in phases, from the existing 95 percent, for specific F&O stocks. Margins have also been hiked in the cash segment for both F&O and non F&O stocks, while institutions will have to restrict their F&O positions in the index derivatives segment to stay within a new criteria of cash and cash equivalents on the long side and value of stock holdings on the short side. This measure will also impact volume in specific F&O counters where offsetting will be required, we may actually see a situation where prices swing more on lower volumes, due to reduction of the liquidity. Read more