Nifty erases month-long gains in 5-day with stock mayhem

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Nifty holds 25k level amid market mayhem in stocks

By S Jha

New Delhi, October 4: Nifty shed another 235 points on Friday amid unabated equity market mayhem. The Middle East Tension as well as FnO rejig by the SEBI have unleashed havoc on the street.

Sensex dived by 800 points on Friday. The bourses lost half the value lost on Thursday when a market capitalisation of ₹10 lakh crore was wiped out.

Bank Nifty too bled heavily. Nifty’s strong support at 25000 came to the rescue of the 50-share index.

Nifty briefly went below the 25000 level but soon retraced its path. Bank Nifty also regained some lost grounds.

Also Read: Middle East tension routs stock market while realty bleeds

But, overall, the equity bourses in India have gone in firm grips of bears. Yet, bottom fishing was sighted on the street.

Heavy buying was seen as the investors rushed to buy at lower levels. The investors rushed to buy into the favourite stocks amid the crash.

The IT sector led the fightback by the bulls on Friday. Infosys was active as the scrip gained firmly. At one time, Infosys was trading with gains of over three per cent.

The banking counters also showed signs of life. The Axis Bank, IndusInd Bank and the State Bank of India were also seen in action. The banking counters were trending from the lower levels after correcting extensively.

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But soon the bulls surrendered the street to the bears. The bears came back to the street ferociously to lynch the bulls in the daylight. Indices suddenly nosedived during the time Iran’s supreme leader Ayatollah Khamenei finished his Friday prayer speech.

Khamenei vowed to punish Israel. He endorsed support for the Hamas and the Hezbollah. The markets apparently saw sabre rattling by Khamenei as further signs of Middle East Tension.

Mahindra and Mahindra was the top loser with cut of over four per cent. Asian paints again lost heavily. Bharat Petroleum Corporation Limited again heavily lost.

Oil refiners and paints companies have sharply corrected due to spike in the crude oil prices. In contrast, the oil and gas companies were in demand on the street.

Also Read: Furious pharma lights up dark lanes of stock market

The ONGC and Oil India made gains on the street. The paper scrips were trending during the day. Most of the paper companies rose sharply on Friday.

Aptus Value Housing and Home First Finance also gained sharply. The housing finance companies have been trending in the aftermath of the rate cut by the US Federal Reserve.

Disclaimer: This article makes no recommendation for buy or sell of shares of any company.

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