The benchmark indices closed sharply lower and continued their downtrend for the second consecutive day. The markets crossed the total turnover of Rs 1 lakh crore as institutions were the sellers in today's trade. They booked profits at higher levels. The Nifty closed below the 4400 mark while the Sensex ended below 15,000 level. Both the indices were seeing some bouts of volatility in the second half of trade.
Financial, technology, telecom, capital goods, metal and select oil & gas stocks witnessed selling pressure. However, ONGC, NTPC, Sterlite Industries, DLF and GAIL were the only gainers. All sectoral indices ended in the red.
The markets started with good gains led by positive Asian cues and had managed to recover Tuesday's losses. But after two hours of positive trade, both the indices slipped into the red due to sell-off in heavyweights. The 50-share NSE Nifty shed 159 points or 3.5% from an intraday high of 4557.95, before closing at 4398.90, down 1.57% or 70.20 points. The 30-share BSE Sensex lost 219.37 points or 1.46%, to settle at 14,843.12, after shedding 526 points or 3.4% from day's high of 15,369.42.
At per the provisional data, the Nifty July future closed with 14 points premium. The Nifty 4200 Put shed 6.5 lakh shares in OI (open interest) while the Nifty 4600 Call added 5 lakh shares in OI. Reliance Industries, HDFC, BHEL, Bharti, TCS, SAIL, ICICI Bank, L&T and Infosys were draggers.
Vijay Bhambwani of bsplindia.com said if we broke 4400 one could even see those head and shoulder targets of 3875 or 3650 materializing provided the decline is on very steep volumes. "Today we are seeing distribution, volumes are higher, markets are tempted to make an up thrust but failed and terminated at 4560 odd levels. That should be treated as a short-term top now."
Total traded turnover increased 31.6%, to Rs 1,19,647.60 crore as against Rs 90,914.18 crore on Tuesday. This included Rs 21,352.57 crore from the NSE cash segment, Rs 91,641.08 crore from the NSE F&O and the balance Rs 6,653.95 crore from the BSE cash segment.
Earnings
HDFC lost 4.4% despite good quarterly numbers. Its Q1FY10 net profit went up 20.73% to Rs 565 crore and net interest income was up 27.41% to Rs 830.2 crore.
BHEL declined 2.9%. Its Q1FY10 PAT (profit after tax) was up 22.42% at Rs 470.59 crore and net sales went up 29.25% to Rs 5,595.65 crore, YoY.
Wipro Q1 consolidated net sales declined to Rs 6,289.1 crore from Rs 6,482.1 crore while net profit went up a bit by 0.54% to Rs 1,015.5 crore from Rs 1,010 crore (QoQ) (US GAAP). IT services revenue stood at $1,033 million, down 1.3% (QoQ). The stock was down 1.5%.
Canara Bank Q1FY10 net interest income (NII) was up 26.72% at Rs 1,291.5 crore and net profit was up 352.39% at Rs 555.3 crore, YoY. The stock lost 2%.
All sectoral indices ended in the red. BSE Capital Goods, Auto, Power, IT, TECk, Metal, Healthcare and Bank indices were down 1-1.8%
In the capital goods space, ABB, BHEL, Crompton Greaves and L&T were down 1.6-3%. Power stocks like Reliance Infrastructure, Neyveli Lignite, Reliance Power, GVK Power, Torrent Power and Power Grid Corp lost 1-3.4%. Lanco Infratech, Tata Power and GMR Infra were down 0.4-0.8%.
In the technology space, Tech Mahindra, HCL Tech, TCS, Mphasis, Wipro and Infosys declined 1-5%. Banking stocks like Kotak Mahindra, Axis Bank, ICICI Bank and HDFC Bank slipped 1-2.9%. SBI was down 0.9%.
In the metal pack, Hindalco, Tata Steel, SAIL, Sesa Goa, Hindustan Zinc, JSW Steel and Jindal Saw lost 1.4-3.4%.
Oil & gas stocks like Cairn India, BPCL, Reliance Industries, Reliance Petroleum and IOC were down 1.5-3%. HPCL was down 0.51%.
In the auto space, Ashok Leyland, Bajaj Auto, Maruti Suzuki, Hero Honda and M&M lost 1.4-3%. Tata Motors was down 0.79%.
Telecom stocks like Tata Communication, Reliance Communication, Bharti Airtel, Idea Cellular and MTNL slipped 1.5-2.7%. In the realty space, Ackruti City, Unitech and Indiabulls Real fell 0.9-2.6%.
The market breadth was negative; about 1308 shares advanced while 1451 shares declined on the BSE. Nearly 405 shares remained unchanged. Among the broader indices, the BSE Midcap was down nearly 1% and Smallcap Index fell just 0.35%.
In the midcap space, India Cements, LIC Housing Finance, Anant Raj Industries, Gujarat Flourochem and Simplex Infra were down 6-8%. In the smallcap space, Sanghi Industries, Sunflag Iron, Anus Labs, Titagarh Wagons, Dalmia Cement and TIL declined 6-7.5%.
On the global front, Asian markets ended mixed. Shanghai was up 2.6%. Nikkei, Straits Times and Taiwan Weighted were up 0.3-0.7%. However, Hang Seng fell 1.3% and Jakarta Composite down 1%. Straits Times was flat.
At the time of closing of Indian equities, European markets and US futures were trading marginally in the red.
Mkts slide further; RIL, Bharti, SAIL, BHEL, TCS, L&T drag
At 14:53 hours IST, selling in financial, technology, capital goods, telecom, select power and oil & gas stocks was putting pressure on the benchmark indices. The Nifty was struggling at the 4400 mark as institutions were the sellers. The broader indices were also quiet in trade.
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