Sensex, Nifty Post Worst One-Day Fall In A Month On Global Woes
Closing Bell: Sensex Closes 624 Points Lower; Nifty Ends At 10,926
The S&P BSE Sensex ended 623.75 points or 1.66 percent lower at 36,958.16 and the NSE Nifty 50 closed 1.65 percent lower at 10,925.85. The broader markets represented by the NSE Nifty 500 ended 1.9 percent lower.
The markets will not see an upmove until the the government announces some relief measures concerning few industries and foreign portfolio investors, according to Avinash Gorakshakar, head of research at Joindre Capital Services
“The markets are expected to remain under the ‘bear hug’ and is difficult to predict a strong bounce back until the announcement from the government,” Gorakshakar told BloombergQuint in an interview.
Commenting on how to play in markets, BNP Paribas Securities’ Head of Equity Research Abhiram Eleswarapu suggested that the investors need to be very selective while investing in mid- and small-cap stocks.
“Most mid-cap stocks’ estimates are built around a story that may differ from the ground reality,” Eleswarapu told BloombergQuint in an interaction.
The valuations of the stocks are cheaper than they were. The mid and small caps are trading below their long-term averages. Investors need to be extremely stock-selective and follow ‘text book type of investing’, he said.
The market breadth was tilted in favour of sellers. About 1,228 stocks declined and 550 shares advanced on National Stock Exchange.
All the 11 sectoral gauges compiled by National Stock Exchange declined, led by the NSE Nifty Auto Index’s 3.9 percent fall.
M&M At Over Five-Year Low
Shares of Mahindra & Mahindra fell as much as 6.5 percent, the most in 10 months to Rs 510.25, the lowest since April 2014.
The stock traded at 12 times its estimated earnings per share for the coming year, Bloomberg data showed.
Sun Pharma Q1 Profit Beats Highest Estimate
Shares of Sun Pharmaceutical Industries rose as much as 5.3 percent to Rs 444.45 after the company announced its June quarter results.
Key earnings highlights (Q1, YoY)
- Revenue up 15.9 percent to Rs 8,374.4 crore.
- Net profit up 31.2 percent to Rs 1,387.5 crore.
- Ebitda up 13.7 percent to Rs 1,928.3 crore.
- Margin at 23 percent versus 23.5 percent.
Zee Entertainment Complete Acquiring Remaining Stake In Zee-Turner
Zee Entertainment Enterprises Ltd. today said that the company complete the acquisition of the remaining 26 percent stake in Zee-Turner, according to its stock exchange filing.
Tata Steel Near Three-Year Low
Shares of Tata Steel extended declines for the fourth consecutive trading session to trade at their lowest levels since November 2016.
Market Check: Sensex Falls Over 600 Points; Nifty Gives Up 11,000
Indian equity benchmarks were trading at day’s low, led by the declines in HDFC twins, Infosys Ltd. and ITC Ltd.
The S&P BSE Sensex fell over 600 points or 1.62 percent to 36,971 as of 2:55 p.m. and the NSE Nifty 50 fell 1.57 percent to 10,936.40. The broader markets represented by the NSE Nifty 500 Index fell 1.6 percent.
The market breadth was tilted in favour of sellers. About 1,245 stocks declined and 523 shares advanced on National Stock Exchange.