Traders work at a securities exchange in Mumbai. (Photographer: Adeel Halim/Bloomberg)

Sensex, Nifty Fall For Fourth Day As Financials Drag

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Closing Bell: Sensex, Nifty Fall For Fourth Day As Financials Drag

Indian equity benchmarks fell for a fourth day in a row paced by losses in Yes Bank, Indiabulls Housing Finance and Bajaj Finance.

The S&P BSE Sensex fell 0.75 percent to 280 points and the NSE Nifty 50 Index dropped 0.8 percent or 91 points to 11,143.

For most part of the day, benchmarks traded firmly higher, but slumped sharply in afternoon trading as housing finance companies came under heavy selloff dampening the overall market sentiment. At day’s lowest level, the Sensex slumped over 1,100 points and Nifty fell below psychologicaly important level of 11,000.

All 11 sector gauges compiled by the National Stock Exchange fell dragged by the Nifty Realty Index’s 3.5 percent drop followed by Nifty Private Bank Index’s 3.45 percent decline.

Mid- and small-cap shares also saw a selloff as the Nifty Midcap 100 Index fell 2.5 percent and the Nifty Smallcap 100 Index plunged 3.7 percent.

Closing Strategies: Nifty, Nifty Bank, Godrej Properties

Manav Chopra of Indiabulls Ventures discussed trading strategies after markets witnessed highly volatile session.

  • Nifty has support at 11,000 and resistance at 11,350
  • Nifty Bank has support at 25,700 and resistance at 26,500
  • Sell Godrej Industries for target of Rs 520 with stop loss at Rs 570
  • Buy Indian Oil for target of Rs 170 with stop loss at Rs 150.

Do Not See Systemic Risk In HFCs, Says Madhu Kela

Today’s sharp selloff in housing finance companies does not indicate that there is a systemic flaw for them, market expert and well known investor Madhu Kela told BloombergQuint.

Key earnings highlights:

  • Very clear it does not looks like there is a systemic flaw in the system for housing finance companies (HFCs)
  • This kind of vertical fall in HFCs comes because of lack of buyers and not because of crores of shares are up for sale.
  • Post such correction stocks usually take time to consolidate
  • This kindly of selling could be a final capitulation
  • Need to be careful and invest from long term perspective and not for short term

Nifty Hovers Around 100-Day Moving Average: Highlights

The NSE Nifty 50 Index fell the most since March 2018 and was hovering around its 100-day moving average placed at 11,025.

Key highlights:

  • Nifty declines most since March 2018, hovers around 100-day moving average
  • Nifty Bank declined most since Feb. 6, 2018
  • Nifty Bank down over 1,500 points this week
  • Sensex declines most since March 23, 2018
  • Dewan housing down 37 percent, most since listing
  • Yes Bank down 27.5 percent, most since listing in 2005
  • Indiabulls housing down over 10 percent, worst day since listing
Sensex, Nifty Fall For Fourth Day As Financials Drag

Tata Motors Slumps After Fitch Revises Outlook To Negative

Shares of the Mumbai-based parent of luxury car maker Jaguar Land Rover fell as much as 9.4 percent to Rs 229, also its lowest level in nearly six years.

Fitch revised outlook on Tata Motors to Negative; Affirms at 'BB+'. The revision of the outlook reflects Fitch's expectations of rising negative free cash flow (FCF) over the next two financial years.