Rakesh Patil
Indian markets witnessed high volatility in February and declined 3 per cent due to global and domestic factors such as the union budget and the Russia-Ukraine crisis. Harsh Parekh, Bonanza Portfolio said, “The structure of the index has turned negative and the downward sloping trendline is acting as good resistance for the past several trading sessions.” The month started on a strong note on the back of the Budget presented on February 1, but the market came under pressure soon thereafter amid weak PMI data, bond yields and rising crude oil prices.
After this, the market remained volatile for the next 2 weeks i.e. between 7-18 February and closed down between the announcement of RBI policy. In the last week of February, due to Russia’s invasion of Ukraine on 24 February, the market continued to decline, showing excessive volatility in the market. At the same time, on 24 February, the biggest single day decline was seen in the Indian markets.
FIIs continued selling for the fifth consecutive month. They sold equities worth Rs 45,720.07 crore during the month, while domestic institutional investors bought shares worth Rs 42,084.07 crore.
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Broader markets got a big blow
The broader index outperformed the main benchmark, with BSE midcap and smallcap indices falling 5 per cent and 8.7 per cent, respectively. However, around 500 smallcap stocks saw a fall of 10-92 percent.
Among them, 12 stocks like Forbes Gokak, Syncom Formulations, Lasa Supergenerics, GE Power India, Brightcom Group, Urja Global, Mirc Electronics, Mahindra Logistics, Take Solutions, Himatsingka Seide, JBM Auto and Indiabulls Housing Finance lost 20-92 per cent.
30 Smallcaps saw a boom
While 30 smallcap stocks rose 10-57 per cent. These include Vadilal Industries, Excel Industries, Shankara Building Products, Orient Bell, Eveready Industries India, Sandur Manganese and Iron Ores, Ambika Cotton Mills and TCPL Packaging.
“Rising crude oil prices are a major concern for India, which will increase the oil import bill and subsequently trigger an increase in inflation,” said Shrikant Chauhan, Kotak Securities.
Chauhan said, “Currently the market is hovering between 16,500 and 16,750. 16,600 will be the immediate support level for traders and above this the index can go up to 16,850-16,950. However, if the level of 16,600 is broken, Nifty can correct to 16,500-16,350.” Is.”
On the other hand, if we look at the sectoral index, the Nifty PSU bank and Media index declined by 10-10 percent. On the other hand, realty and auto declined by 9 per cent and 7 per cent, respectively. Nifty Metal was the only index that closed in the green with a gain of 7.7 percent.
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