Moneycontrol
Feb 09, 2018 08:43 PM IST | Source: Moneycontrol.com

Sensex sheds 407 pts due to sell-off in banks, global peers; metals, midcaps shine

The broader markets, however, outperformed frontline indices. The Nifty Midcap ended with 0.2 percent gains. About 1,400 shares advanced against 1,358 declining shares on the BSE.

July 6, 2009: The Sensex tumbled 6.98 percent intraday by around 1054.47 points, as investors went on a selling spree following the Government not coming out with any significantly positive news on the reforms and divestment fronts when it presented the Union Budget. The Index however closed down 869.65 points, or 5.8 percent to 14,043.40.
July 6, 2009: The Sensex tumbled 6.98 percent intraday by around 1054.47 points, as investors went on a selling spree following the Government not coming out with any significantly positive news on the reforms and divestment fronts when it presented the Union Budget. The Index however closed down 869.65 points, or 5.8 percent to 14,043.40.

The market reversed all its previous day's gains on Friday, tracking global weakness on worries over US interest rate hikes. Benchmark indices shed more than 1 percent, dragged mainly by banking and financials.

The 30-share BSE Sensex was down 407.40 points or 1.18 percent at 34,005.76 and the 50-share NSE Nifty fell 121.90 points or 1.15 percent to 10,455.

Frontline indices lost another 3 percent during the week, in addition to 2.7 percent loss in the previous week; and this sharp correction was mainly due to global woes.

Majority of experts feel the fall is expected to continue, though there could be some bargain hunting intermittently in quality stocks which may support the market.

"Markets are currently dancing to the global tunes and we expect this to continue in near future. Indications are pointing toward further fall thus traders should prefer "sell on rise" approach," Jayant Manglik, President, Religare Broking said.

He further said the Nifty has crucial support at 10,400 and its breakdown will trigger further fall. In case of any rebound, it would face stiff resistance around 10,600-10,700 zone, he added.

Nikhil Kamath, Co-Founder and Head of Trading, Zerodha said looking at the strength in Indian markets on the back of weak global cues, he is changing outlook from slightly bearish to neutral territory. "We would still not advocate entering fresh longs at this juncture."

On the global front, Asian indexes ended sharply lower, following negative lead from Wall Street. Japan's Nikkei, China's Shanghai Composite and Hong Kong's Hang Seng slipped 2-4 percent.

European markets - France CAC, Germany DAX and Britain FTSE were lower by 0.2-0.5 percent at the time of writing this article, as investors kept an eye on the turbulence seen across markets worldwide.

The broader markets, however, outperformed frontline indices. The Nifty Midcap ended with 0.2 percent gains. About 1,400 shares advanced against 1,358 declining shares on the BSE.

Nifty Bank hit hard, falling 1.8 percent followed by Auto, FMCG, IT and Pharma which declined 0.4-1 percent whereas Metal index gained 1.3 percent.

HDFC Bank, HDFC, Infosys, ICICI Bank, ITC, L&T, SBI, Yes Bank, Axis Bank, Kotak Mahindra Bank and Tata Motors were down 1-2 percent followed by Reliance Industries with 0.7 percent loss.

Tata Steel gained 2 percent ahead of third quarter earnings due later today. Rival SAIL also gained 9 percent after it reported profit at Rs 43 crore for Q3FY18 (against loss of Rs 794.84 crore in Q3FY17).

Cipla gained another 1.4 percent, on top of 8 percent rally seen in previous session post Q3 earnings.

In broader space, Fortis Healthcare rallied 18 percent after Malvinder Singh and Shivinder Singh tendered resignation from the directorships of the company.

Indiabulls Real Estate was up 7 percent as the board of directors will meet on February 14 in relation to demerger of residential and commercial business. Sources told CNBC-TV18 that global PE investor Blackstone is in talks to buy equity stake in Indiabulls Real Estate's commercial assets and to infuse close to USD 500 million in Indiabulls Real.

Glenmark Pharma shares fell 7 percent after the company posted steep decline in Q3 profits and expects the US pricing pressure to continue.
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