Sensex, Nifty Clock Longest Losing Streak In Over Two Months
Closing Bell: Sensex, Nifty Clock Longest Losing Streak In Over Two Months
Indian equity benchmarks extended declines for the fifth consecutive trading session, clocking their longest losing streak in over two months.
The S&P BSE Sensex closed 0.36 percent lower at 37,847.65 and the NSE Nifty 50 fell 0.53 percent to 11,331.05. The broader market represented by the NSE Nifty 500 Index fell 0.8 percent.
The markets are expected to fall 8-10 percent from current levels, according to Narnolia Financial Advisors’ Vineeta Sharma.
“We are factoring in earnings per share of 575-580 for the Nifty in current financial year with a 17.5-21.5 times price-to-earnings. We could see the markets falling below the lowest estimated P/E if there are uncertainties in the macro, liquidity and earnings,” the Head of Equity Research told BloombergQuint over the phone. “This could lead to 8-10 percent correction.”
The market breadth was tilted in favour of sellers. About 1,185 stocks declined and 561 shares advanced on National Stock Exchange.
Nine out of 11 sectoral gauges compiled by NSE ended lower, led by the NSE Nifty Metal Index’s 2.4 percent fall. On the flipside, the NSE Nifty Media Index was the top sectoral gainer, up 1.69 percent.
Stocks Reacting To Results Announcement
Canara Bank (Q1, YoY)
- Stock fell as much as 5.3 percent to Rs 242.60.
- Net profit at Rs 329.1 crore versus Rs 281.5 crore.
- NII down 17 percent to Rs 3,240.61 crore.
- Gross NPA at 8.77 percent versus 8.83 percent (QoQ).
- Net NPA at 5.35 percent versus 5.37 percent (QoQ).
- Provisions at Rs 1,899.13 crore versus Rs 5,523.50 crore (QoQ).
Crompton Greaves Consumer Electricals (Q1, YoY)
- Stock rose as much as 1.5 percent to Rs 232.
- Revenue up 11.9 percent to Rs 1,346.8 crore.
- Net profit up 17.5 percent to Rs 122.6 crore.
- Ebitda up 14.8 percent to Rs 192 crore.
- Margin at 14.3 percent versus 13.8 percent.
Jubilant FoodWorks (Q1, YoY)
- Stock fell as much as 9.2 percent to Rs 1,115.85
- Revenue up 10 percent to Rs 940 crore.
- Reported Ebitda up 54 percent to Rs 219 crore.
- Margin at 23.3 percent versus 16.6 percent
- Net profit flat at Rs 74.8 crore.
- Same store sales growth of 4 percent.
Fab Four Stocks Of The Day
Zee Entertainment Enterprise
- Stock rose as much as 6.2 percent to Rs 383.
- The company’s promoters, who are looking to pare debt, have received two bids for acquiring nearly half of their stake in the Subhash Chandra-led Essel Group’s flagship media company, Managing Director Punit Goenka told BloombergQuint.
- Stock rose as much as 2.4 percent to Rs 2,188.85.
- The housing finance lender said that as a policy in case of under-construction properties, it will disburse loans to individuals based on the stage of construction. The company’s exposure to housing loan products in subvention schemes offered by developers is less 2 percent of the individual loans.
- Stock rose as much as 9.7 percent to Rs 1,610.
- The company’s net profit rose 32.5 percent year-on-year at Rs 216 crore in June quarter.
- Stock rose as much as 15 percent to Rs 249.
- Trading volume was more than double its 20-day average.
Bond Market Update: 10-Year Yield At Day’s Low
Indian sovereign bonds rose after Bloomberg reported that the government may raise $10 billion in a single issuance in its debut global bond sale.
The 10-year yield dropped as much as four basis points to 6.42 percent.
Axis Bank To Close Half Offshore Branches Including Hong Kong
- Axis Bank is closing down its branches in Hong Kong, Shanghai and Colombo.
- Staff working at the three branches, which amount to half of Axis Bank’s overseas locations, are in the process of being transferred back to India.
Source: Bloomberg quoting people familiar with the matter
Shares of Axis Bank fell as much as 2.5 percent to Rs 709.35.
Europe Market Check: Equities Decline
European stocks paused a rally after their biggest one-day gain in more than a month, as a slew of earnings drove corporate share moves.