Tuesday turned out to be a daunting session for the BSE Sensex and NSE Nifty which got pounded by around a percentage point after the Parliament’s first day of monsoon session failed to impress traders. Final hour of trade proved to be the curse for the markets and bourses settled below their crucial 28,200 (Sensex) and 8,550 (Nifty) levels.

After trading in tight band for most part of the day’s trade, domestic gauges crashed like house of card in the last leg of trade.

Investors remained concerned as monsoon session of the Parliament that begun today is expected to be volatile as the opposition likely to target the government over multiple scandals that erupted in the recent past.

Market Outlook by Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services
The initial Q1FY16 results are a mixed bag, providing no clear picture of the earnings outlook. The expectation regarding results is low. And as per the early conclusion, the market is profit booking, post the strong outperformance in the past one month, before the important parliament monsoon session which will have a difficult start.

Shares of Sun Pharma witnessed massive selling pressure today, plunging over 16 per cent, after the drug major said it expects to take a hit on profit for the fiscal due to charges related to the ongoing integration with Ranbaxy Laboratories.

Investors also shrugged off better than expected Infosys’ Q1 numbers. The company has reported 4.99% rise in its net profit at Rs 3030 crore for the quarter ended June 30, 2015 as compared to Rs 2886 crore for the same quarter in the previous year.

It has also upped dollar revenue growth for 2015-16. After several quarters the company raised its US dollar revenue guidance from 6.2-8.2% in dollar terms to 7.2-9.2%.

Market Wrap Up by Alex Mathews, Head Research, Geojit BNP Paribas Financial Services
The markets opened with a flat note as the investors’ focus were on the monsoon session of Parliament and on the heavy weight earnings, traded sideways and finally closed in the negative territory.  Heavy sell-off was witnessed in the Pharma, banking, metal and cement sectors stocks.  Investors cautiously reduced long positions during the earning season and parliament session.
In its earnings, INFY beat the street expectations along with raised its full year revenue guidance. For the quarter ended June 2015, the net profit of the company stood at $ 476 million as compared to $ 482 million a year ago and the revenue was up 4.5% sequentially to $ 2.26 billion.  The company also raised the revenue growth range to 7.2 to 9.2% for the financial year ending March 2016 from the earlier range of 6.2 to 8.2%.
Nifty today closed at 8529 down around 74 point. The market breadth turned negative as there were seen 967 stocks advancing against 1862 stocks declining. The Nifty volatility index, India VIX stood at 15.0975 up around 0.91%.  The mid-cap and small cap sector also closed down around 1.42% and 1.52% respectively.
Barring the IT sector, which closed up around 4.57% all other sectors, closed in red. The major losers for the day were Healthcare and Realty which ended down around 5.93% and 2.16% respectively.
The gainers in the stocks’ front were INFY and Bharti Airtel, closed up around 11.50% and 3.62% respectively. Selling was seen in Sun Pharma and Lupin which ended down around 15.08% and 5.05% respectively.
The FIIs were net buyers in the cash market segment on 20 July 2015, Monday, bought shares worth Rs 714.40 crore. The DIIs on the other hand were sellers on 20 July, sold shares worth Rs 848.76 crore in the capital markets segment.
The European markets fell on the back of decline in the health care stocks. The US index futures were trading mixed.
Ceat LTD, Bajaj Finserv, PVR, Heidelberg, Infratel, Tata metali, SKS micro, Heritage Food, Bajaj Finance and Igarashi may announce their earnings tomorrow.

Selling in healthcare counter weighed down sentiments with Sun Pharma contributing the most to the losses after the drug maker said its profit might be adversely impacted in financial year 2015-16.

FMCG space too witnessed selling pressure owing to weak Q1 results of HUL. The FMCG major has reported marginal rise of 0.22% in its net profit at Rs 1059.14 crore for the quarter ended June 30, 2015 as compared to Rs 1056.85 crore for the same quarter in the previous year.

The company’s total income has increased by 3.73% to Rs 8213.74 crore for the quarter under review from Rs 7918.45 crore for the corresponding quarter of the previous year.

Market View by Anand James, Co Head Technical Research Desk, Geojit BNP Paribas
With FOMC as well as RBI rate announcements scheduled in the next fortnight, buyers were seen reluctant to chase prices higher. Deadlock in monsoon session of Parliament also worked in the background, while the Justice A.P. Shah panel’s report on MAT expected to be submitted some time next week also played on the investors’ mind. However, even if the report on MAT holds potential for surprise, FIIs have not begun responding to it atleast as yet, with FII data showing that they have been net buyers in Indian market for the last six days.

NSE’s 50-share broadly followed index, Nifty declined by over seventy points to end below the psychological 8,550 support level, while Bombay Stock Exchange’s Sensitive Index – Sensex tumbled by around two hundred and forty points to end below its psychological 28,200 mark.

Broader markets too struggled to get any traction and ended the session with a cut of around one and a half percent. The market breadth remained in favour of decliners, as there were 946 shares on the gaining side against 1,883 shares on the losing side while 101 shares remain unchanged.

Finally, the BSE Sensex plunged by 237.98 points or 0.84% to 28182.14, while the CNX Nifty declined by 74.00 points or 0.86% to 8529.45.

Market View by Gaurav Jain, Director, Hem Securities
Key benchmark indices nosedived on dismal corporate earnings. Earnings warning by the pharma major Sun pharmaceuticals, weak guidance by FMCG major HUL and high provisioning made by private sector major HDFC Bank caused a concern on asset quality of private sector banks. Further, the wash-off of the very first monsoon session of Parliament also spoiled the sentiment.

The BSE Sensex touched a high and a low 28518.06 and 28138.30, respectively. The BSE Mid cap index was up by 1.42%, while Small cap index up by 1.59%.

The top gaining sectoral indices on the BSE were IT up by 4.57% and TECK up by 3.82%, while Healthcare down by 5.93%, Realty down by 2.16%, Infrastructure down by 1.98%, Oil & Gas down by 1.74% and FMCG down by 1.67% were the losing indices on BSE.

The top gainers on the Sensex were Infosys up by 11.05%, Bharti Airtel up by 3.68%, Wipro up by 1.69%, Hero MotoCorp up by 1.10% and Bajaj Auto up by 0.99%. On the flip side, Sun Pharma down by 14.95%, Vedanta down by 4.74%, Lupin down by 4.68%, ONGC down by 3.56% and Tata Steel down by 3.29% were the top losers.