The Nifty50 was up nearly 9% in the past eight sessions through Thursday, amid hopes for progress in Russia-Ukraine peace talks and softer crude oil prices.
After last week’s gains, the spike in crude oil prices and earnings postings dragged down Indian equities on Monday. Both the Sensex and Nifty50 had their worst days, falling 1% each in major Asian indices. While Taiwan’s TAIEX rose 0.6%, KOSPI and Hang Seng fell 0.8% and 0.9% respectively on Monday.
The Nifty50 was up nearly 9% in the past eight sessions through Thursday, amid hopes for progress in Russia-Ukraine peace talks and softer crude oil prices. However, with little sign of a decrease in conflict, the Brent resumed its upward spiral, adding about 15% over the last three sessions. Barring two sessions, Brent prices have closed above the $100 a barrel level since Feb. 28, with the March 8 close of $127.98 being the highest.
“After a sharp recovery of around 10%, there is some fatigue in Indian markets with higher profit postings. The ongoing conflict between Russia and Ukraine and the fluctuation in oil prices amid limited supply are likely to keep investors on their toes,” said Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services. Khemka expects 17,000 to be strong support for Nifty50 in the near term.
The return of foreign purchases seems short-lived. On Monday, FPI’s shares sold worth $389.11 million against local purchases of $33.22 million, preliminary data on the exchanges showed. Overseas investors had bought nearly half a billion shares in the previous two sessions.
While the Sensex was down 571.44 points at 57,292.49 on Monday, the broader Nifty fell 169.45 points to close out the day at 17,117.60. Rate-sensitive sectors such as autos, banks, real estate and energy lost value on Monday, while metals, media and pharmaceuticals gained. The BSE Midcap lost 0.7% while the small cap measure delivered marginal gains. Even the Volatility Index – India VIX rose 9% to 24.62 levels, adding to the general discomfort for the market.
Meanwhile, the drug makers, which have signed an agreement with Medicines Patent Pool (MPP) to make the generic version of Pfizer’s Covid pill, rose in Monday’s trade. While SMS Pharmaceuticals shares gained the most with a gain of 11.6%, Strides Pharma rose 5.7%.
Other suppliers such as Glenmark Pharmaceuticals, Granules India and Laurus Labs gained between 2% and 3%.
“Nirmatrelvir is a new product and requires significant manufacturing capabilities to produce, and we are very impressed with the quality of production displayed by these companies,” said Charles Gore, MPP’s executive director on Thursday.
This post Sensex, Nifty tumbles 1%; metals, media and pharmaceutical stocks gain was original published at “https://www.financialexpress.com/market/sensex-nifty-tumble-1-metals-media-and-pharma-stocks-gain/2467270/”