The benchmark BSE Sensex surrendered its early gains to settle lower by 155 points at 27,735.02 as blue-chips took a beating on persisting concerns of foreign investors on tax claims despite government’s clarification.
Muted earning numbers, forecast of a below-normal monsoon and fading hopes of a rate cut by the Reserve Bank weighed on sentiments, brokers said.
Moreover, depreciating rupee against the dollar also led to a cautious approach, they added.
Market Outlook by Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services
FII’s concerns still remains as they continued to be net sellers even after the government’s clarification on MAT issues. Market in the meantime have therefore consolidated to its previous month support levels of 8350-8400. Going forward, budget session will gain significance as Rajya sabha have started today and GST bill is expected to be introduced in Lok Sabha in coming days. Government is expected to pass the two important bills Land and GST in the current session which will be over by 13th May. A trend of Q4 will also emerge with major companies’ results in next week to guide the market.
Clarificatory amendments to MAT rules are under consideration of the government,” Minister of State for Finance, Jayant Sinha, told reporters on the sidelines of a conference on climate change held here today.
The 30-share Sensex resumed higher at 27,977.27 and shot up to regain the 28,000-mark in early trade on the back of firming global cues.
However, the index failed to hold onto initial gains due to intense selling pressure in the last 90 minutes and slumped to 27,621.18 before ending at 27,735.02, a fall of 155.11 points or 0.56 per cent.
Market Wrap Up by Mr. Alex Mathews, Head Research, Geojit BNP Paribas Financial Services Ltd – April 23, 2015
After a positive opening, the markets turned to a volatile session and finally settled in the negative territory on concerns of below normal monsoon and its subsequent impacts on our economy. Quarterly number of Infosys, F&O expiry and uncertainties over Greece kept the markets under pressure. Until and unless if some sectors quarterly numbers fails to rescue the market then we can expect the Nifty testing its crucial support levels at 8265.
Nifty today opened at 8478, made an intraday high and low of 8504 and 8361 and finally closed at 8398, down around 31 points. The market breadth turned to negative as there were seen 1371 stocks advancing against 1440 stocks declining. The Nifty volatility index, India VIX stood at 18.5000 up around 7.49%.
The major gainers for the day were Metal and Consumer Durables which closed up around 1.56% and 1.25% respectively. On the other side selling were seen in Capital goods and Health care sector, which ended down around 0.89% and 0.86% respectively.
In the stocks’ front, the major gainers were Yes Bank and Tata steel which closed up around 6.98% and 5.25% respectively whereas the losers were Tech Mahindra and Sun Pharma which closed down around 2.82% and 2.76% respectively.
The FIIs were net sellers on 22 April 2015, Wednesday on the cash markets segment, sold shares worth Rs 910.15 crore. The DIIs on the other hand were buyers on 22 April, bought shares worth Rs 217.98 crore in the capital markets segment.
The European markets fell on the back of weaker than expected data. A Markit Economic data showed that the growth in euro area manufacturing and services slowed in April. Also in UK the retail sales fell unexpectedly in March. The US index futures were also trading in red. Tomorrow companies like Siemens, SSWL, INFY, Pittilam and Cholamandalam fin may announce their earnings.
This is BSE Sensex’s sixth fall in last seven sessions.
The gauge had gained 214.19 points in yesterday’s trade after Finance Minister Arun Jaitley said GST bill will be passed in the current session of Parliament.
Also, the NSE Nifty ended 31.40 points or 0.37 per cent down at 8,398.30 after hitting the day’s high of 8,504.95 and a low of 8,361.85 during the session.
On the Sensex, Sun Pharma suffered the most by falling 2.55 per cent to Rs 942.45.
Other losers included, SBI, Tata Motors, NTPC, M&M, ONGC, Dr Reddy’s, L&T, Infosys, Wipro and RIL.
Of 30-share index, as many as 19 scrips ended lower.
However, Coal India, BHEL, Bajaj Auto, Bharti Airtel, Cipla, Hindalco, Sesa Sterlite, Tata Power and Tata Steel and TCS finished higher.
Sectorally, BSE capital goods suffered the most by falling 0.89 per cent, followed by healthcare at 0.86 per cent, realty 0.85 per cent, auto 0.67 per cent, power 0.65 per cent, oil & gas 0.54 per cent and IT 0.32 per cent.
Foreign Portfolio Investors sold shares worth Rs 910.15 crore, while Domestic Institutional Investors bought shares worth Rs 217.98 crore, yesterday as per provisional data.
European stocks were trading lower today as a data showed euro-area output expanded at a slower pace in April.
Other Asian indices ended mixed following a report indicating Chinese manufacturing activity contracted in April.