Down 12,700 pts (31%), sensex has the worst quarter
MUMBAI: As fears about the impact of the peso spread on investor sentiment globally, Dalal street He ended his worst moment on a brighter note. On Tuesday, a strong rally in the sensex heavyweight Reliance Industries, along with short overall coverage and index management by large funds on the last day of the financial year, helped the index close to 29,648, a increase of 1,028 points on the day. Of the 30 components of sensex, 26 ended up, while IndusInd Bank, recently affected by asset quality problems, led the fall with a fall of 14.7%.
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The January-March quarter, in which the sensex lost nearly 12,700 points, or 31%, that too after reaching a record high of 42,274 on January 20, was the worst in terms of point loss and percentage loss. Also investors erosion of wealth of Rs 42.6 lakh crore with BSE Market capitalization now at Rs 112.6 lakh crore, was the sharpest, according to official data. Foreign investors also raised more than Rs 48 billion during the quarter, again making the three-month period the worst. However, mutual funds have acted as a buffer against strong FPI sales and have recorded a net purchase figure of approximately Rs 37.5 billion.
According to a note by Shrikant Chouhan, EVP - Equity Technical Research, Kotak Securities, the day's gains could be called the NAV's annual and quarterly management day for the market, with several of the large-cap stocks closing at day's height. Technically, if the nifty falls below the 8,350 level, it would retreat further to 8,250 or even down to the 8,000 level, Chouhan said. Global markets are better than expected, but our markets operate cautiously due to the constant sale of foreign institutions.
In Tuesday's session, it was RIL that recovered more than 8% and contributed about a fifth of sensex's earnings that came after the company said Monday that its board would consider raising funds on April 2. The company's decision comes in the context of an expected delay in the purchase of shares by the world oil company. Saudi Aramco In the RIL refinery business, an agreement to download a stake in Jio, its telecom arm for the social media giant, was also delayed due to uncertainties related to Covid, which had also reduced more than 40% of its value in less than three months and Oil prices plummeted by 60% in less than two months.
The other top sensex gainers in Tuesday’s session were ITC, ONGC and Tech Mahindra. Other than IndusInd Bank, the other index laggards were , and Titan, BSE data showed.