Nifty: Market Watch: What triggered the huge selloff in equities today?

Welcome to ETMarkets Watch, the show about stocks, market trends and money-making ideas. I am Saloni Goel. and here are the top headlines at this hour.

Morgan Stanley downgrades Indian equities over expensive valuation
Maruti plans to widen CNG portfolio
September coal imports at more than 7 year-low
Jio pays DoT Rs 10,792 cr for 2016 auction
Adani in talks for $2-bn mega fundraise
And
Investors borrowing funds to put into IPOs will have to pay nearly double the usual rates

Let us take a quick glance at what happened on Dalal Street today.

Domestic equity markets witnessed a heavy selloff on Thursday amidst the weekly expiry. Benchmark indices registered their biggest fall in six months. Broader markets along with the bluechips were under bear grip. Weaker global cues dampened the sentiments, whereas poor earnings sparked the selloff. The sharp selloff by FIIs intensified the pressure. All sectors settled lower, with most of the pain coming from banks, metals, financials, media and pharma players. The BSE barometer Sensex tanked about 1,160 points to settle below 60,000. It traded in a wide range of 1,300 points during the day. Its broader peer, Nifty50, settled just above 17,850 mark as the NSE barometer bled more than 350 points. It slipped below 17,800 mark during the day. The broader markets outperformed the headline peers but BSE midcap and smallcap indices fell up to 1.5 per cent each. Fear gauge India VIX spiked over 6 per cent, marching towards 18-level.

On BSE Sensex, 24 stocks settled in red while only six gained. ITC led the losers, declining 6 per cent. It was followed by ICICI Bank, Kotak Mahindra Bank, Axis Bank and Titan which tanked 4 per cent each. SBI, HDFC Bank and NTPC gave up 3 per cent each. Tech Mahindra, Sun Pharma, Bajaj Auto, HCL Tech, Airtel, Tata Steel, Power Grid, TCS and Dr Reddy’s Labs ended 2 per cent lower each.

On the other hand, IndusInd Bank surged 3 per cent, followed by a 2 per cent rise in L&T. Ultratech Cement and Asian paints added a per cent each. Maruti Suzuki and Bajaj Finances were other two stocks, which settled in green. About 260 stocks hit upper circuit limits for the day and more than 250 stocks hit the lower circuit. More than 50 stocks tested their 52-week highs during the session.

We have Vinod Nair from Geojit Financial Services to share his views on the day’s action and the road ahead:
Welcome to the show sir:

1. What triggered the huge selloff in equities today?
2. Which sectors look attractive to you after recent corrections?

We also caught up with Vijay Dhanotiya from CapitalVia Global Research to decode the technical charts for you.
1. Nifty 50 breached 18,000 levels today. Where is it headed now?
2. Nifty Bank was under pressure during the expiry. What is your take on it?

Asian markets settled lower for the day. Major European markets were trading with cuts in the first few hours of trade. US stock futures were up hinting towards a positive start to US equities later in the day.

That’s all for now. Do check out ETMarkets.com for all the news, market analysis, investment strategies and dozens of stock recommendations. Enjoy your evening. Bye Bye!