Moneycontrol
Oct 05, 2017 03:53 PM IST | Source: Moneycontrol.com

Sensex ends 4-day winning streak, Nifty ends below 9900, but midcaps outperform

Through the day, the Street traded in a narrow range on the flattish side, apart from some positive movements in the early part of the day. However, the market soon gave up its gains and continued to see sideways day of trade.

Sensex ends 4-day winning streak, Nifty ends below 9900, but midcaps outperform

Moneycontrol News

Fresh selling in the last hour of trade dragged frontline indices lower and led to the market ending on a subdued note. Nifty snapped the four-day gaining streak to close below 9900-mark.

Through the day, the Street traded in a narrow range on the flattish side, apart from some positive movements in the early part of the day. However, the market soon gave up its gains and continued to see sideways day of trade.

The Sensex was down 79.68 points at 31592.03, while the Nifty was down 26.20 points at 9888.70. The market breadth as positive as 1,493 shares advanced against a decline of 1,148 shares, while 106 shares were unchanged.

NTPC, Coal India, Aurobindo Pharma and Ambuja Cements were the top gainers, while ICICI Bank, Hero MotoCorp, Tech Mahindra and Bharti Infratel lost the most.

The Bank Nifty closed in line with the frontline indices, while midcaps saw a stellar run, outperforming Sensex and Nifty.

Support was visible from index heavyweight Reliance Industries, which ended with gains of about a percent. A good move on Infosys also helped the indices.

Meanwhile, PSU banks witnessed a good day as they outperformed the private banks, led by Bank of Baroda, Canara Bank and Punjab National Bank. On the other hand, cement stocks saw some rally on the back of price hike reports.

Pharmaceutical stocks, on the other hand, witnessed another day of a recovery rally. Natco Pharma continued with its upmove, with gains of over 3 percentpost Copaxone generic launch by Mylan.

Among global markets, Asia markets traded mixed, with some Australian retailers faltering after lower-than-expected sales data showed consumers Down Under were cutting back.

The country's retail turnover fell 0.6 percent in August, data from the Australian Bureau of Statistics showed, coming in short of a Reuters poll forecasting a rise of 0.3 percent. That was the worst decline in sales since early 2013, Reuters said.

There were declines in food retailing, cafes, restaurants and takeaway food services, household goods and clothing, footwear and personal accessories. Sectors that saw an increase included department stores.

European stocks edged lower as investors monitored political events and took a cautious approach ahead of key data releases.

The pan-European Stoxx 600 was 0.16 percent lower with most sectors trading in negative territory. Construction and material stocks were the worst-performing sectors in mid-morning trade following news that the CEO of Assa Abloy is considering stepping down. Shares of the Swedish company fell nearly 5 percent as a result, and hit the bottom of the European benchmark.

Experts anticipate some weakness in the market as well. “The risk appetite is on the uptrend which will be positive for EMs. But, what we have seen in the last couple of months, India is losing its favoured status (for investment) which it enjoyed over the last 12 months,” Pramod Gubbi, Head of Equities, Ambit Capital said in an interview with CNBC-TV18.

The large part of the change in trend could be attributed to rise in commodities, especially crude oil prices. “A large part of the shift could be because of a rally in commodity pack. A lot of other EM markets which are commodity-heavy have found favour while India’s valuations have created some sort of deterrent to park their money,” he said.
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