Sensex, Nifty End At Two-Month Low As Foreign Investors Continue Selling
A man prays to a deity on display, not pictured, at the Bombay Stock Exchange (BSE) building in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Sensex, Nifty End At Two-Month Low As Foreign Investors Continue Selling

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Closing Bell: Sensex, Nifty End At Two-Month Low

Indian equity benchmarks ended lower after a one-day breather on Friday as foreign investors continued to sell.

The S&P BSE Sensex ended 0.52 percent lower at 37,686.37 and the NSE Nifty 50 ended at 11,189.20, down 0.84 percent. The broader market represented by the NSE Nifty 500 Index ended 0.91 percent lower.

Markets are getting "severely punished" due to continued selling from foreign portfolio investors, said Parthiv Shah, director, Tracom Stock Brokers, in an interview to BloombergQuint. "It is no longer a polarised market as stronger stocks are falling too. This is because most of these stocks are over-owned by foreign investors."

Foreign institutional investors have sold Rs 11,369 crore-worth equities so far this month, according to National Securities Depository Limited data. This is the worst monthly sell off in 2019.

The market breadth was tilted in favour of sellers. About 504 stocks advanced and 1,274 shares declined on National Stock Exchange.

Ten out of 11 sectoral gauges compiled by NSE ended lower, led by the NSE Nifty Media Index’s 3.28 percent fall. On the flipside, the NSE Nifty IT Index was the only sectoral loser, up 0.34 percent.

Sensex, Nifty End At Two-Month Low As Foreign Investors Continue Selling

Alembic Pharma Jumps 4.5% After Results

Shares of the Gujarat-based drugmaker rose 4.5 percent intraday to Rs 543.20 apiece. The company reported its June quarter results today.

Key Highlights (YoY)

  • Revenue up 10 percent to Rs 948.9 crore.
  • Net profit shot up 30.9 percent to Rs 118.5 crore.
  • Ebitda up 48.9 percent at Rs 224.9 crore.
  • Margin at 23.7 percent versus 17.5 percent.
  • Raw materials as percentage of sales at 21.5 percent.

The stock traded 19 times its estimated earnings per share for the coming year, Bloomberg data showed. The company’s annual general meeting is scheduled today.

FPIs Sell Off Pulling Down The Markets, Says Tracom's Shah

Markets are getting "severely punished" due to continued selling from foreign portfolio investors, said Parthiv Shah, director, TRACOM Stock Brokers, in an interview to BloombergQuint. "It is no longer a polarised market as stronger stocks are falling too. This is because most of these stocks are over-owned by foreign investors."

Shah said the markets will stay tepid for the next 3-6 months but will offer new investing opportunities.

Kansai Nerolac Jumps 4%

Shares of the paint maker jumped as much as 4.5 percent to Rs 422 each. The company announced its results today.

Key Highlights (YoY):

  • Revenue rose 9 percent to Rs 1,542 crore.
  • Net profit up 5 percent to Rs 146 crore.
  • Ebitda up 14 percent to Rs 254 crore.
  • Margins at 16.5 percent versus 15.8 percent.
Decorative segment has seen good double-digit volume and value growth. This has helped offset the huge effect of the unprecedented slow-down in the automotive segment where the company has a significant exposure.
HM Bharuka, Vice Chairman and MD, Kansai Nerolac

The stock traded at 41 times its estimated earnings per share for coming year, Bloomberg data showed.

SBI Pares Loss After Cutting Interest Rates Across All Maturities

Shares of the country’s largest state-owned bank pared losses and was trading at Rs 340.70 each, down 0.55 percent. The stock fell as much as 1.7 percent intraday.

SBI lowered deposit interest interest rates in the view of falling interest rate scenario and surplus liquidity in the system. reported Bloomberg citing the bank’s statement.

Interest rates were lowered by up to 20 basis points in retail segment and 35 basis points in the bulk segment, Bloomberg said. For term deposits with shorter tenors of up to 179 days, the interest rate was slashed by 50-75 basis points.

The stock has gained 20 percent in the past 12 months compared to a 0.7 gain in the Sensex.

Sensex, Nifty Fall Sharply; Indiabulls Housing Top Loser

Indian equity benchmarks witnessed a sharp fall in the afternoon trade led by losses in Indiabulls Housing and Grasim Industries.

The S&P BSE Sensex fell as much as 1 percent to 37,540.60 and the NSE Nifty 50 fell as much as 1.13 percent to 11,156.55. The broader market index represented by the NSE Nifty 500 Index fell as much as 1.15 percent.

There is a possibility of a rally in Nifty Index towards 11,300 by the end of this week, said Jignesh Mehta, technical analyst at kiranjadhav.com, in an interview with BloombergQuint. However, the rally could happen only if the index survives the key support level of 11,150, he said.

The market breadth was tilted in favour of sellers. About 1,255 stocks declined and 457 shares advanced on National Stock Exchange.

All sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Auto Index’s 2.75 percent fall.

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