Feb 15, 2017 09:47 PM IST | Source: Moneycontrol.com

Yellen comments, auto drag Sensex 184 pts; Tata Motors down 10%

The broader markets fell more compared to benchmarks. The BSE Midcap index was down 1.2 percent and Smallcap dropped 1.5 percent on weak breadth. About three shares declined for every share rising on bourses.

Yellen comments, auto drag Sensex 184 pts; Tata Motors down 10%

Moneycontrol Bureau

The market broke its recent range on downside Wednesday as concerns raised over FIIs inflow after Federal Reserve chairwoman Janet Yellen hinted rate hike next month. Disappointing quarterly earnings by Tata Motors and Sun Pharma also spoiled sentiment.

The 30-share BSE Sensex fell 183.75 points to 28155.56 and the 50-share NSE Nifty lost 67.60 points to 8724.70 despite positive global cues.

Markets may see further decline ahead but the downside seems capped, Jayant Manglik of Religare Securities said.

He further said traders should maintain extra caution in midcap and smallcap space as they react strongly during the corrective phase. On the other hand, he feels it's an opportunity for those who were waiting some correction to enter as the overall trend is still up.

Meanwhile potential comeback of El Nino also cast a cloud on agri output, and the markets would now look forward to the GST meet on February 18 closely, Anand James of Geojit Financial Services said.
 
The broader markets fell more compared to benchmarks. The BSE Midcap index was down 1.2 percent and Smallcap dropped 1.5 percent on weak breadth. About three shares declined for every share rising on bourses.

Tata Motors shares, which dragged the Nifty Auto index 3 percent, crashed 10.3 percent (in addition to 3.7 percent loss in previous session) as analysts are worried over JLR's hedging losses that are expected to continue for next 3-4 quarters. Tata Motors DVR also dropped 10 percent.

CLSA has downgraded Tata Motors to sell and slashed target price to Rs 405 from Rs 650 after cutting FY18-19 EPS estimates by 25-31 percent due to dismal performance in Q3FY17. Management commentary on JLR margins has weakened significantly, it says, adding hedging losses are likely to continue at high levels for longer.

Sun Pharma shed 4 percent after earnings missed analysts' expectations. Citi says delay in fresh approvals from Halol plant would remain overhangs while Nomura cut FY17 earnings estimates by 9 percent, FY18 by 5 percent & FY19 by 3 percent.

DLF shares tanked 7 percent after the company delayed its stake sale in rental subsidiary Cyber City Developers by one year. Its consolidated profit during October-December quarter fell 46.1 percent to Rs 98.1 crore on year-on-year basis.

HDFC Bank hit a record high of Rs 1324.85 intraday, before closing up half a percent while Escorts hit a 52-week high during the day, up 5.9 percent.

After third quarter earnings, real estate company HDIL plunged 7 percent and Jindal Steel gained 2 percent.

Among other largecaps, ICICI Bank, Adani Ports, L&T, Maruti, Tata Steel and Hero Motocorp were down 1-2.6 percent whereas ITC bucked the trend, up 1 percent followed by Reliance Industries and HDFC.

European bourses were higher after Janet Yellen, the chair of the US Federal Reserve, hinted at a possible rate hike next month. Asian markets barring China closed higher, with the Japan's Nikkei, Hong Kong's Hang Seng and Australia's ASX 200 up 1 percent each.

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