The S&P BSE Sensex and NSE Nifty 50 indexes staged a mild recovery in afternoon trading led by gains in pharma and FMCG shares. Earlier in the day, Sensex fell as much as 582 points to hit an intraday low of 27,683 and the Nifty 50 index dropped below psychological level of 8,100. However, losses in banking, financial services and information technology shares continue to weigh on investors’sentiment.
As of 1:49 pm, the Sensex traded 1 per cent or 279 points lower at 27,986 and the Nifty 50 index was down 65 points or 0.8 per cent at 8,188.
“Retail, pharma and FMCG shares will be least affected from the outbreak of the virus and reports that US companies may shift their bases from China to India will be positive for Indian equities,” AK Prabhakar, head of research at IDBI Capital told NDTV.
Eight of 11 sector gauges compiled by the National Stock Exchange were trading lower led by the Nifty Private Bank index’s 3.5 per cent drop. Nifty Bank, Financial Services, PSU Bank, Auto and IT sector gauges also fell between 1.4-3.4 per cent each.
On the other hand, Nifty Pharma index surged over 5 per cent followed by Nifty FMCG index’s over 2.5 per cent surge.
Mid-and small-cap shares were also facing selling pressure as the Nifty Midcap 100 index declined 0.6 per cent and Nifty Smallcap 100 index fell 1 per cent.
ICICI Bank was top Nifty loser, the stock dropped 7 per cent to 289. IndusInd Bank, JSW Steel, Titan, HDFC, Kotak Mahindra Bank, State Bank of India, Axis Bank, Wipro, Maruti Suzuki and Tata Steel also fell between 4-6.5 per cent each.
On the flipside, Sun Pharma was top Nifty gainer, the stock surged 10 per cent to Rs 377. ITC, Cipla, GAIL India, Bharat Petroleum, ONGC, Mahindra & Mahindra, Tech Mahindra, Bajaj Finance, Dr Reddy’s Labs and Indian Oil also rose between 2-9 per cent each.