Financial Stocks Cause Indices Close Thursday Lower

The Indian stock markets have reversed the rallying trend after six consecutive sessions on Thursday. The Indian benchmark indices were dragged down by financial stocks to close Thursday lower. The financial sectors witnessed a selling trend. Wrong price feed made into the Nifty Bank contracts resulted in the stalling of trade activities for some time as some brokers stopped placing trades due to the glitch.

The S&P BSE Sensex closed lower today. It shed 0.38% or 128.84 points to end Thursday at 33,980.80 points. Asian paints led the losses in the index, and it lost 4.64% or 79.65 points. On the other hand, Bharti Airtel gained the most. It shot up by 5.73% or 31.6 points on the back of reports suggesting Amazon being interested in purchasing stakes in the telecom giant. 

The S&P BSE MidCap index closed nearly flat. However, it shed 0.06% or 7.35% to close the day at 12,333.29 levels. The BSE SmallCap index as well did not see much of a change as it ended the day 0.05% lower at 11,564.79 levels. India VIX, the volatility gauge, shed almost 2% to close at 29.51 points.

Also Read: The Indian Benchmark Indices Close Tuesday Over 1.5% Higher

The NSE Nifty as well closed in the red but managed to close above the levels of 10,000. It ended the day at 10,029.10 points, dropping 34.25 points or 0.32%. The NSE Nifty Private Bank index lost the most among the sectoral indices; it fell more than 3% to wrap up at 11,128.70 points, it was followed by the NSE Nifty Bank which ended 2.63% lower at 20,390.35 levels.  

In the commodities markets, oil prices collapsed over the speculation of oil producers failing to conclude to cut their production to support the falling costs lately due to the reduced demand owing to lockdown restriction placed to curb the spread of the novel coronavirus infection around the world. Oil producers are expected to meet this week. 

For any clarifications/feedback on the topic, please contact the writer at vineeth.nc@cleartax.in