‘Unattractively Valued’ Sensex, Nifty Extend Decline To Two-Month Low
The Bombay Stock Exchange (BSE) logo is displayed on a biometric security and authentication device at the bourse’s building in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

‘Unattractively Valued’ Sensex, Nifty Extend Decline To Two-Month Low

Latest First
  • Oldest First

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

Indian equity benchmarks closed at a two-month low, led by declines in HDFC Twins and carmakers.

The S&P BSE Sensex fell 1.44 percent to 38,337 and the NSE Nifty 50 declined nearly 1.53 percent to close at 11,419.25. The broader market index represented by the NSE Nifty 500 Index fell as much as 1.60 percent.

Markets witnessing a sharp correction is long overdue and not due of any specific alarming reason. That’s according to Saurabh Mukherjea, founder, Marcellus Investment Managers.

We have had weak earnings growth in India for the best part of last six years now and therefore the market was unattractively valued for quite some time.
Saurabh Mukherjea, Founder, Marcellus Investment Managers

The market breadth was tilted in favour of sellers. Over 1,347 stocks declined while 425 stocks advanced. All sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Auto Index’s 3.31 percent fall.

Nifty Auto Index At Over 40-Month Low

Nifty Auto Index emerged as the worst sectoral performer among those compiled by National Stock Exchange. The gauge fell 3.24 percent in today’s trade.

‘Unattractively Valued’ Sensex, Nifty Extend Decline To Two-Month Low

RBL Bank Falls 14%

Shares of RBL Bank fell 14.4 percent, its biggest-ever intraday fall, to Rs 496.40 apiece after the private lender announced its June quarter results today.

‘Unattractively Valued’ Sensex, Nifty Extend Decline To Two-Month Low

Europe Markets Check: Equities Advance

European equities advanced as investors embraced bets on more aggressive monetary easing by global central banks.

‘Unattractively Valued’ Sensex, Nifty Extend Decline To Two-Month Low

Markets Pullback Not Surprising, Says Saurabh Mukherjea

Indian benchmarks witnessing a sharp correction is long overdue and not due of any specific alarming reason. That’s according to Saurabh Mukherjea, founder, Marcellus Investment Managers.

“We have had weak earnings growth in India for the best part of last six years now and therefore the market was unattractively valued for quite some time,” said Mukherjea in an interview to BloombergQuint. He, however, said high-quality stocks such as HDFC Bank and Kotak Mahindra Bank will continue to perform well.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.