Equity benchmarks saw a profit taking on Wednesday on the back of sell-off in financial, auto, metal, realty, telecom and capital goods companies' shares. The benchmark Nifty slipped below 6100-mark in second half of trade, especially after a fall in global markets.
Experts feel that markets are riding low and all eyes are on the third quarter earnings that will kick-start next week. Sandeep J Shah of Sampriti Capital said that the upside maybe 6,200-6,400 but it will not ride away at that level. He is also concerned on the foreign institutional investor (FII) inflows to India.
“Insurance companies inflows are very muted, domestic mutual funds redemptions continue, some of the HNI’s and retail, at least a part of them have perhaps left the market because of the corruption, the scams that have been unearthed,” he explained.
European markets - France's CAC and Germany's DAX were down 1% each; FTSE fell just 0.2%, at the time of closing Indian equities. Even US index futures like Dow Jones and Nasdaq declined 0.5% each. Shanghai fell 0.5% and Taiwan tanked 1.7%.
Jim Walker, MD of Asianomics said that Europe is a bigger problem than China and US. “Europe is going to see political turmoil,” he explained.
According to him, the US economy may see weakness in the next six months. Expressing concern, Walker stressed that there might be monetary tightening across Asia. He believes that the Reserve Bank of India (RBI) is likely to hike interest by 25 bps this month.
Rate sensitives and commodities dragged the markets lower today. The BSE Bank, Realty and Auto indices lost 2% each; Capital Goods Index fell 1.6%. However, TCS, ITC, HUL, HCL Tech, Sesa Goa, Tata Power, Hindalco, Dr Reddy's Labs and Wipro were the only gainers.
The 30-share BSE Sensex closed at 20,301.10, down 197.62 points or 0.96% and the 50-share NSE Nifty fell 66.55 points or 1.08% to settle at 6079.80. The broader indices too slipped one percent each.
In financial space, ICICI Bank, IDFC and HDFC fell 3% each; SBI, HDFC Bank, Axis Bank and Kotak Mahindra Bank were down 1.5-2.75%. PNB lost 1.25%. DLF from realty pack tumbled 3.36%.
Bajaj Auto from auto space plunged 3.87% as one international research firm downgraded the stock to underperform from outperform. Hero Honda tanked 3.8%; M&M, Maruti Suzuki and Tata Motors fell 1% each.
L&T and BHEL from capital goods segment went down 2.4% & 1.1%, respectively. Heavyweights Bharti Airtel and ONGC were down 2% & 1.6%. Even Reliance Industries was just in red.
Anil Dhirubhai Ambani Group companies' shares like Reliance Infrastructure, Reliance Capital and Reliance Communications cracked 2.6-3% while Reliance Power rose 0.57%. ITC and HUL from FMCG space were up 1.3-1.5%.
In metal space, SAIL, Sterlite Industries and Tata Steel were down 1.5-2% whereas Hindalco and Sesa Goa gained 1-1.9%. Infosys from technology pack lost 0.6% while TCS was up 1.24% and HCL Tech up 2.4%. Wipro gained just 0.2%.
In midcap space, Jindal Saw, KGN Industries, Jain Irrigation, Gujarat Flourochem and Shriram City gained 3-7% while Rashtriya Chemical, Sadbhav Engg, Anant Raj Industries, GSFC and Apollo Tyres lost 4.75-5.5%.
In smallcap space, Fame India shot up 19.69% as Reliance Mediaworks increased stake to 44% in company. Indo Tech Transformers jumped 17%. Transformers & Rectifiers, Camlin and INOX Leisure rose 6.8-11.7%.
However, Mandhana Industries, Splash Media, Sagar Cement, SE Investments and Hinduja Foundries declined 5.7-8%.
Breadth was in favour of declines; about 1028 shares advanced as against 1953 shares declined on Bombay Stock Exchange.
Total traded turnover on exchanges stood at Rs 1,13,705.1 crore. This included Rs 13,072.32 crore from NSE cash segment, Rs 96,562.35 crore from NSE F&O and the rest of Rs 4,070.43 crore from BSE cash segment.
Experts feel that markets are riding low and all eyes are on the third quarter earnings that will kick-start next week. Sandeep J Shah of Sampriti Capital said that the upside maybe 6,200-6,400 but it will not ride away at that level. He is also concerned on the foreign institutional investor (FII) inflows to India.
“Insurance companies inflows are very muted, domestic mutual funds redemptions continue, some of the HNI’s and retail, at least a part of them have perhaps left the market because of the corruption, the scams that have been unearthed,” he explained.
European markets - France's CAC and Germany's DAX were down 1% each; FTSE fell just 0.2%, at the time of closing Indian equities. Even US index futures like Dow Jones and Nasdaq declined 0.5% each. Shanghai fell 0.5% and Taiwan tanked 1.7%.
Jim Walker, MD of Asianomics said that Europe is a bigger problem than China and US. “Europe is going to see political turmoil,” he explained.
According to him, the US economy may see weakness in the next six months. Expressing concern, Walker stressed that there might be monetary tightening across Asia. He believes that the Reserve Bank of India (RBI) is likely to hike interest by 25 bps this month.
Rate sensitives and commodities dragged the markets lower today. The BSE Bank, Realty and Auto indices lost 2% each; Capital Goods Index fell 1.6%. However, TCS, ITC, HUL, HCL Tech, Sesa Goa, Tata Power, Hindalco, Dr Reddy's Labs and Wipro were the only gainers.
The 30-share BSE Sensex closed at 20,301.10, down 197.62 points or 0.96% and the 50-share NSE Nifty fell 66.55 points or 1.08% to settle at 6079.80. The broader indices too slipped one percent each.
In financial space, ICICI Bank, IDFC and HDFC fell 3% each; SBI, HDFC Bank, Axis Bank and Kotak Mahindra Bank were down 1.5-2.75%. PNB lost 1.25%. DLF from realty pack tumbled 3.36%.
Bajaj Auto from auto space plunged 3.87% as one international research firm downgraded the stock to underperform from outperform. Hero Honda tanked 3.8%; M&M, Maruti Suzuki and Tata Motors fell 1% each.
L&T and BHEL from capital goods segment went down 2.4% & 1.1%, respectively. Heavyweights Bharti Airtel and ONGC were down 2% & 1.6%. Even Reliance Industries was just in red.
Anil Dhirubhai Ambani Group companies' shares like Reliance Infrastructure, Reliance Capital and Reliance Communications cracked 2.6-3% while Reliance Power rose 0.57%. ITC and HUL from FMCG space were up 1.3-1.5%.
In metal space, SAIL, Sterlite Industries and Tata Steel were down 1.5-2% whereas Hindalco and Sesa Goa gained 1-1.9%. Infosys from technology pack lost 0.6% while TCS was up 1.24% and HCL Tech up 2.4%. Wipro gained just 0.2%.
In midcap space, Jindal Saw, KGN Industries, Jain Irrigation, Gujarat Flourochem and Shriram City gained 3-7% while Rashtriya Chemical, Sadbhav Engg, Anant Raj Industries, GSFC and Apollo Tyres lost 4.75-5.5%.
In smallcap space, Fame India shot up 19.69% as Reliance Mediaworks increased stake to 44% in company. Indo Tech Transformers jumped 17%. Transformers & Rectifiers, Camlin and INOX Leisure rose 6.8-11.7%.
However, Mandhana Industries, Splash Media, Sagar Cement, SE Investments and Hinduja Foundries declined 5.7-8%.
Breadth was in favour of declines; about 1028 shares advanced as against 1953 shares declined on Bombay Stock Exchange.
Total traded turnover on exchanges stood at Rs 1,13,705.1 crore. This included Rs 13,072.32 crore from NSE cash segment, Rs 96,562.35 crore from NSE F&O and the rest of Rs 4,070.43 crore from BSE cash segment.
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