Moneycontrol
Jan 12, 2016 10:35 PM IST | Source: Moneycontrol.com

Nifty ends at 18-month low, Sensex down 143 pts; banks, TCS dip

The broader markets underperformed benchmarks, falling around a percent. The market breadth was also weak as about two shares declined for every share advancing on the Bombay Stock Exchange.

Nifty ends at 18-month low, Sensex down 143 pts; banks, TCS dip

Moneycontrol Bureau


Equity benchmarks continued southward journey on Tuesday with the Nifty falling below psychological 7500-mark intraday, weighed down by banking & financials, technology and metals stocks. Correction in crude oil prices and weak earnings caused selling pressure.


The 50-share NSE Nifty ended at 18-month closing low of 7510.30, down 53.55 points after hitting an intraday low of 7487.80. The 30-share BSE Sensex lost 143.01 points to 24682.03, the lowest closing level since May 30, 2014.


The broader markets underperformed benchmarks, falling around a percent. The market breadth was also weak as about two shares declined for every share advancing on the Bombay Stock Exchange.


On the global front, Brent crude fell more than 3 percent intraday to hit a low of USD 30.43 a barrel, the lowest level since April 2004, before edging back to 31.42 a barrel (down 0.41 percent at 16 hours IST). NYMEX crude was down 1 percent to USD 31.11 a barrel. With this correction, prices fell nearly 20 percent since the start of the year, dragged lower by soaring oversupply, China's weakening economy and stock market turmoil, as well as the strong dollar.


European markets extended rally after recovery in crude oil prices. Germany's DAX, France's CAC and Britain's FTSE gained 1-2 percent (at 16 hours IST) while Asian markets barring China ended lower. Nikkei hit one year low, down 2.7 percent and Hang Seng lost 0.89 percent while Shanghai gained 0.2 percent.


Ruchir Sharma of Morgan Stanley says the globe may see a mild recession based on what's happening in China.



On home turf, Bank Nifty ended at fresh 52-week closing low of 15,734.80, down 1.76 percent. State Bank of India, ICICI Bank, Bank of Baroda, Punjab National Bank and Axis Bank were down 1-3 percent followed by HDFC Bank with 0.77 percent loss.


On earnings front, IndusInd Bank dropped 2.7 percent on higher provisions in Q3FY16. Profit and net interest income beat expectations, up 30 percent and 36.2 percent, respectively. Federal Bank lost nearly 8 percent on 38 percent fall in December quarter profit.


TCS hit fresh 52-week low of Rs 2,301.10 intraday, before closing down 1.7 percent ahead of third quarter earnings. A CNBC-TV18 poll expects muted growth owing to seasonality & Chennai floods.


ONGC and Cairn India dropped more than 2 percent on correction in crude oil prices.


Larsen and Toubro gained 0.4 percent. Credit Suisse has upgraded the stock to outperform from neutral but reduced target to Rs 1,475 from Rs 1,515 per share earlier.

Among others, Bharti Airtel, Tata Steel and Hindalco Industries were down 2-3 percent while Mahindra & Mahindra, Wipro, NTPC and Adani Ports gained 1-2.5 percent.

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