ETMarkets After Hours: Panic, panic everywhere; IT, pharma take big hit
NEW DELHI: To all those who thought Monday's mayhem was deadly, Tuesday's trade proved to be terrible as a bigger carnage engulfed equity markets across the globe.
The Dow Jones' worst decline in history last night triggered heavy selloff in all markets, including India.
The S&P BSE Sensex on Tuesday opened over 1,200 points down at 33,753 against the previous close of 34,757. It hit an intraday low of 33,482, before staging a smart recovery and finally shut shop at 34,195, down 561 points. All the 30 index components closed in the red.
The Nifty50 of the National Stock Exchange (NSE) settled 1.58 per cent or 168 points lower at 10,498 with only five constituents ending in the green and rest in the red.
Here's a look at the top newsmakers of the session:
IT takes the hardest hit, pharma, PSBs follow
Shares of IT players plunged the most, dragging Nifty IT index 3 per cent lower to 12,562 with nine of 10 constituents ending in the red. Following suit, Nifty Pharma index slipped 2.19 per cent to 8,871 while Nifty PSU Bank index tumbled 2 per cent to 3,438. Out of the 12 constituents, 11 ended in the red and one in the green.
Spurt in open interest
Mindtree witnessed the biggest spike in open interest at 17.59 per cent, followed by UBL (United Breweries)(16.47 per cent) and Grasim Industries (16.38 per cent)
TWEET OF THE DAY
Someone please tell global investors LTCG has been levied only in India ??????
— Ashish Chugh (@hiddengemsindia) February 6, 2018
VIX spikes 25%
The volatility index India VIX spurted 25 per cent to 20.01. Volatility Index is a measure, of the amount by which an underlying Index is expected to fluctuate, in the near term. "Rise in Volatility from past 3 trading sessions post Budget is affecting the smooth ride of the market," said Chandan Taparia.
Pharma major Lupin reported a 64.97 per cent fall in consolidated net profit at Rs 221.73 crore for the quarter ended December 31, mainly on account of dip in US sales. The company had posted a net profit of Rs 633.11 crore for the corresponding period of the previous fiscal, Lupin said in a filing to BSE. Shares of the company settled at Rs 801.65 apiece on BSE, down 6 per cent.
Broader markets bleed too
The S&P BSE Smallcap index shed 390 points or 2 per cent to close at 17,392 with Bhushan Steel (up 14 per cent) being the top gainer and PGEL (down 10 per cent) the worst laggard. The S&P BSE Midcap lost 278 points or 1.68 per cent to end at 16,281.
HEARD ON D-STREET
There may be a case for indexation benefit for the LTCG levy.