In a volatile session, the benchmark BSE Sensex today dropped by 75 points to 27,945.80 in late sell-off as cautious investors preferred to reduce their positions in blue-chip stocks after two sessions of gains.
In early trade, the 30-share index rose to a day’s high of 28,115.96 points on the back of a stronger global market on hopes of a Greece deal and buying by foreign investors.
However, on across-the-board selling towards the close, the Sensex slipped into negative zone and closed the session 75.07 points or 0.27 per cent down at 27,945.80, slipping from its two-and-a-half months high.
Market Outlook by Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services
Today we saw a mild pause to the outperformance of the Indian market, especially to front stocks and indexes. But the undercurrent continues to be strong with a rally in the mid caps. Q1FY16 results will soon start rolling out and it is a good time to wait and watch for its impact. The markets want to see signs of an end to the earnings downgrade. Good monsoon and latest data for core sector are good signs for India. The event risk of Grexit will be understood only by the weekend and it will impact the world accordingly. Post which domestic focus will shift towards Q1FY16 performance.
The gauge had gained 376 points in previous two sessions.
The 50-issue NSE Nifty fell by 8.15 points or 0.10 per cent to 8,444.90. It shuttled between 8,479.25 and 8,433.20 during the session.
Tata Motors fell the most among Sensex stocks by dropping 1.84 per cent despite the firm reported a 6 per cent increase in total sales in June, followed by Hindalco at 1.72 per cent.
Market View by Anand James, Co Head Technical Research Desk, Geojit BNP Paribas
While Greece uncertainty continued to brew, buyers in Indian markets were less eager to chase prices higher, after three days of relentless sharp rise. RBI Governor’s comments that the government was in talks with the central bank about capital infusion to banks kept banking nifty on a firmer note, even as Nifty stocks eased from the peaks. Dr. Raghuram Rajan’s comments cap a positive week for Indian market, which has seen economic data showing improvement in capex and core sector growth, and also key project announcements from the government. Oil’s sharp fall, following US data showing higher inventory rise, adds to the positive theme, but the key inflation and IIP data due for release next week, would be closely watched for consistency, and signals towards potential rate cut.
Other major losers on the index included Cipla, ONGC, Vedanta, Maruti Suzuki, GAIL, HDFC Bank, Dr Reddy’s, Infosys, HDFC, NTPC, Lupin, L&T, Tata Steel, TCS and Sun Pharma.
However, shares of M&M, Bharti Airtel, Bajaj Auto, Hero MotoCorp, Axis Bank, Wipro, HUL, ITC and RIL ended in positive zone and cushioned the fall.
Stocks of software exporters faced selling after revenue warnings by some IT companies and Eurozone worries led to concern about June-quarter earnings.
Market View by Gaurav Jain, Director, Hem Securities
Markets remained in lackluster mood as investors prefer to stay sidelines ahead of Greece outcome. Tough RBI governor statement on ‘India’s exposure to the Greece is limited’ tried to cheer the street but indices shed the gains in last leg of trade.
Out of 30-share Sensex, 20 ended lower.
Stocks related to irrigation segment such as Finolex Industries, Jain Irrigation Systems, Shakti Pumps, Kaveri Seeds, Monsanto India, Dhanuka Agritech and Advanta surged up to 8 per cent after the government decided to spend Rs 50,000 crore under the Pradhan Mantri Krishi Sinchai Yojna.
Sectorally, the BSE metal index fell the most by plunging 0.62 per cent, followed by IT (0.41 pc), healthcare (0.40 pc), realty (0.19 pc) and capital goods (0.13 pc).
Globally, other Asian markets closed higher on hopes for a deal to keep Greece in the Eurozone, but Shanghai tumbled over 5 per cent. European markets were little changed in their early trade.
(With inputs from Agencies)