Mr. Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty fell sharply for the second consecutive session on April 25 dragged by losses across the board on fears about impact of Covid spread in China on global economy. Nifty opened gap down and remained in a 160 points band. At close, Nifty was down 1.27% or 218 points at 16953.9.
Volumes on the NSE was once again on the lower side on a down day suggesting higher FPI selling pressure and local investors stepping back. Among sectors, Realty, Oil & Gas, Metals, Capital Goods and Telecom fell the most, while Bank index closed marginally in the green. BSE Smallcap and Midcap indices fell 1.86-1.88%.
Asian stocks had their worst session in a month and a half on Monday as fears grew that Beijing was on the verge of joining Shanghai in lockdowns. European stock markets traded sharply lower Monday trading at one month low as investors fretted about the prospect of slowing global growth and sharp monetary policy tightening. Also weighing on sentiment are concerns about the outlook for growth in China, the world's second largest economy, as it battles its most significant outbreak of COVID-19 since the original flare-up.
Nifty fell with another downgap on April 25 and is now close to the previous low of 16824. A move below this level could portend even more weakness for the Nifty (with some intermittent bounces thrown in). 17136-17171 band could in the near term act as a resistance. The broader market is under pressure as reflected by the Advance decline ratio which is the worst since March 07, 2022.