BSE Sensex today slipped by 210.17 points to 27,676.04 while NSE Nifty ended below 8,400-level...
On its fifth-straight session of fall, the benchmark BSE Sensex today slipped by 210.17 points to 27,676.04 while NSE Nifty ended below 8,400-level on losses in pharma and FMCG stocks amid sustained foreign fund outflows and corporate earning concerns.
Foreign investors’ concerns over retrospective taxation continued to weigh on sentiments, traders said.
FIIs had sold shares worth Rs 1,506.86 crore yesterday, as per provisional data.
Market Outlook by Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services
Domestic factors continue to drive market into further consolidation. Though FIIs selling due to tax woes influenced to an extent, Q4 results will still be the decisive factor for market in the near term. As Q4 result season progresses in the coming days, it will provide a more clear picture on the extent of any likely downgrades of FY16E earnings. Also, any outcome from the parliament session will be available only after the Rajya sabha commences on 23rd April. Therefore in the meantime consolidation would prevail in the market.
Sun Pharma was the top loser on 30-share Sensex by tumbling 8.86 per cent to Rs 961.60 after Japan’s Daiichi Sankyo announced sale of its holding in the Indian firm.
Other pharma stocks, Cipla and Dr Reddy’s fell by 0.94 per cent and 2.81 per cent, respectively, on the Sensex.
The index opened lower at 27,860.51 on sustained foreign funds outflows and weak quarterly earnings. However, it recovered to touch day’s high of 27,976.93 in noon trade on value buying in select stocks.
Market Wrap Up by Alex Mathews, Head Research, Geojit BNP Paribas Financial Services
The markets today also remained in negative zone as of the extended sell off seen in the previous trading sessions. The selling by the FIIs in the both the cash and F&O segment created nervousness in the market participants. The market outlook is still showing weakness and Nifty may test 8300 and in even worst scenario a level of 8225 (200 DMA). But the as Nifty has correct around 200 points in the week, the downside is limited as it may enter the oversold region in a day or two of sell off.
Today Nifty closed at 8377 down around 70 points. The market breadth was negative as there were seen 1298 stocks advancing against 1396 stocks declining. The Nifty volatility index, India VIX stood at 17.0300 up around 4.49%.
The mid-cap and small-cap sector ended down around 0.45% and 0.32% respectively.
Barring the metal and consumer durables sector, which closed up around 0.15% and 0.13% respectively, all other sectors ended in red. The major losers for the day were Healthcare and Auto which closed down around 3.24% and 1.31% respectively.
In the stocks’ front, the major gainers were Wipro and Axis Bank which closed up around 2.19% and 1.69% respectively whereas the losers were Sun Pharma and HUL which closed down around 8.45% and 3.99% respectively.
The FIIs were net sellers on 20 April 2015, Monday on the cash markets segment, sold shares worth Rs 1506.86 crore. The DIIs on the other hand were buyers on 20 April, bought shares worth Rs 962.50 crore in the capital markets segment.
On the back of better than expected earnings report, the European markets rose. The US index futures were also trading with a positive note.
Companies like Rallis, Mastek, Yes Bank and Clariant India may announce their earnings tomorrow.
A round of late selling in select bluechip stocks dragged Sensex down to touch low of 27,598.21 before closing at 27,676.04 points — its weakest level since March 27 — down 210.17 points or 0.75 per cent.
The gauge has now lost over 1,370 points in five sessions.
The NSE Nifty slipped below the 8,400-mark by falling 70.35 points or 0.83 per cent at 8,377.75. It shuttled between 8,469.35 and 8,352.70, intraday.
“Domestic factors continue to drive market into further consolidation. Though FIIs selling due to tax woes influenced to an extent, Q4 results will still be the decisive factor for market in the near-term,” said Vinod Nair, Head-Fundamental Research at Geojit BNP Paribas Financial Services.
Moreover, the rupee which breached the crucial 63-mark to touch a low of 63.15 at the outset, rebounded by 16 paise to trade higher at 62.75 against the dollar (intra-session).
Sectorwise, the BSE healthcare index suffered the most by falling 3.24 per cent, followed by Auto at 1.31 per cent, FMCG by 1.17 per cent, Oil & Gas 1.08 per cent, Power 0.73 per cent, capital goods 0.48 per cent and realty by 0.37 per cent.
On the day, BSE smallcap fell by 0.32 per cent, while midcap dropped by 0.45 per cent.
Globally, other Asian markets ended in positive zone, while European markets were trading higher in their opening trade.