Weakness persisted in the broader markets. The BSE MidCap and SmallCap indices dipped up to 0.6 per cent.
Equity benchmark indices extended losses to Thursday’s opening trade with the BSE Sensex falling 200 points to 72,541 and the NSE Nifty slipping 49 points to 21,948.
Bajaj Finance, Tata Steel, JSW Steel, IndusInd Bank, Bajaj Auto and Titan were the top larecap losers.
On the flip side, Coal India, Hindalco, Reliance and BPCL were among the top frontline gainers.
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Weakness persisted in the broader markets. The BSE MidCap and SmallCap indices dipped up to 0.6 per cent.
Among stocks, Som Distilleries rallied 7 per cent as its board will consider a stock split plan on April 2.
Nifty Realty and Bank indices led sectoral losses, down over 1 per cent each. Oil & Gas pocket held the highest gain of over 1 per cent.
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Stock Market View | Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services
The lesson from market history is that frothy valuations are unsustainable. Therefore, the blood bath in the broader market which happened yesterday is hardly surprising to sane minds in the industry.
Investors should appreciate the following facts.
The Nifty Smallcap index is down 13.5% and the midcap index is down 6.8% from their respective peaks. But Nifty is stable with a minor cut of only 2.1%.
There is room for the broader market to correct more since the valuations continue to be elevated.
Investors should now focus on largecaps and quality midcaps. The turbulence in the market will give cherry picking opportunities.
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From now on irrational exuberance will take a back seat and rational valuations and quality will be the driving force. This turbulence will separate the men from the boys. High quality private sector banks and the leading names in capital goods, telecom and autos can be accumulated in a calibrated manner.
Tokyo stocks opened lower Thursday, tracking falls on Wall Street, where investors were eyeing key upcoming economic indicators.The benchmark Nikkei 225 index dropped 0.52 percent, or 201.57 points, to 38,494.40 in early trade, while the broader Topix index also fell 0.24 percent, or 6.40 points, to 2,641.11.
The S&P 500 and Nasdaq edged lower on Wednesday as investors took profits in chipmaker stocks, while they braced for producer price data and further clues on the inflation trend ahead of next week’s Federal Reserve meeting.
