Market Movers: ICICI Bank tanks; 85 stocks flash sell signal; 495 hit upper circuit limits

Mumbai: Benchmark equity indices snapped a four-session winning streak and closed lower on Wednesday, taking cues from weak European equities, as a record surge in new coronavirus infections hurt sentiment.

The 30-share Sensex shed 561 points to close at 34,869, dragged lower by a sharp drop in the financials pack.

Going ahead, volatility was likely to rule the markets, analysts said. “The move was on the expected lines and we may see some consolidation before the next directional move. In the absence of any major event on the local front, participants should keep a close watch on the global markets for cues,” said Ajit Mishra, VP for Research at Religare Broking

“Besides, the performance of the banking and financial pack would be decisive for a further surge in the index. We expect volatility to remain high as traders would square-off and rollover their derivatives positions due to the scheduled expiry of June month contracts,” he said.

Here is a lowdown on what happened in Wednesday’s session:

ICICI BankNSE 0.00 % shares tumble
Private lender ICICI Bank plunged 7.35 per cent to close at Rs 348.80 after a Bloomberg report suggested that the private bank is mulling a stake sale, as big as $3 billion or Rs 23,000 crore. Quoting people familiar with the matter, the report suggested that ICICI Bank was planning to start discussions with potential advisers soon and is targeting the share sale in September.

Selloff across the board
The broader market also plunged into the red. BSE 500 index dropped 0.45 per cent. BSE mid and small cap indices shed 1.08 per cent and 1.24 per cent respectively.

BSE Bankex biggest sectoral loser
BSE Bankex tumbled 4.08 per cent. Private lender IndusInd Bank was the top loser as it shed 7.43 per cent, followed by peer ICICI Bank. Rivals Kotak Mahindra Bank and Axis Bank dropped 3.24 per cent and 4.30 per cent respectively.

FMCG index sole gainer
BSE FMCG sector added 0.35 per cent, and was the only sectoral index to close in the green. Cigarettes-to-hotels firm ITC was the biggest contributor to this index’s gains as it rose 3.17 per cent. Nestle India followed next with a nearly 1 per cent gain.

Stocks that hit upper circuit
Amid the meltdown, as many as 495 stocks managed to hit their upper limits in the day, defying the broader market trend. These included companies such as Future Consumer, AU Small Finance Bank, Lakshmi Vilas Bank, Reliance Infrastructure, and Reliance Power among others.

Stocks that hit 52-week highs
A total of 139 stocks scaled new 52-weeks highs on the BSE. These included Adani Green Energy, Aurobindo Pharma, Birla Tyres, Dixon Technologies, Infibeam Avenues, Marksans Pharma, Opto Circuits India and Ruchi Soya.

Stocks that touched 52-week lows
Around 56 stocks registered their lowest level in 52 weeks in the day. They included Ajcon Global, Mahesh Developers, National Plywood, Ramsons Projects, and TCM among others.

Stocks that gave ‘sell’ signals
Around 85 stocks flashed ‘sell’ as they crossed below the signal line of the MACD indicator. These included Lemon Tree Hotels, Hindalco Industries, Zee Media Corp, United Spirits, Gujarat Gas, Navin Flourine among others.

Where is Nifty headed?
An excellent run-up in the market of the last few sessions seems to be over, as Nifty witnessed sharp profit booking from the new swing high of 10,553 levels on Wednesday, said Nagaraj Shetti, technical research analyst, HDFC Securities “A long bear candle was formed at the swing high and that has almost engulfed the high low range of positive candle of Tuesday. This could be considered as a bearish engulfing pattern (not a classical one),” he said, adding that there is a possibility of some more weakness in the short term.