BSE Sensex and NSE Nifty rocked between positive-flat-negative on Tuesday to end 102.15 points down to 27,459.23 as realty and auto shares slipped on receding hopes of a rate cut by the Reserve Bank and mixed bag of corporate earnings.
The benchmark Sensex plunged 102.15 points at 27,459.23 in closing trade while NSE Nifty dropped 24.00 points at 8,337.00.
Sensex rebounded over 100 points in early trade, but later turned volatile amid a mixed trend at other Asian markets.
Brokerage houses including, Morgan Stanley, RBI and DBS say the apex bank will maintain status quo key lending rate.
Maruti Suzuki shares rose 0.46 per cent to Rs 4,195.65 after the company posted 56.49 per cent growth in its standalone net profit at Rs 1,192.92 crore in the first quarter of this fiscal.
The losers which contributed to the BSE fall included, Dr Reddy’s, Hero MotoCorp, HDFC, ICICI Bank, Tata Motors, Bajaj Auto, Bharti Airtel, Cipla, Tata Steel, Wipro, Coal India, GAIL, M&M, ONGC and Lupin.
Experts on stock markets performance today
Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services Ltd
Post the government’s explanation over P-notes, India is showing signs of stabilising after Monday’s sharp fall when the Chinese market gave way. The immediate movement in the markets will depend on the FOMC rate decision on Wednesday which is likely to take yet another small step towards exiting the zero rate policy by September. This volatility will continue in the near-term but we believe that a large chunk of this impact has been already felt across all asset classes. As seen in the hike of global bond yields, appreciation in dollar and a sharp fall in commodities.
Alex Mathews, Head Research, Geojit BNP Paribas Financial Services Ltd
The Indian markets on Tuesday opened with a marginal uptick and traded in a choppy manner ahead of July futures and option expiry; investors focus were on the 2 day US Fed policy meet scheduled in the later part of the day. Buying in selected counters along with improvement in European markets provided a relief to the markets.
Nifty closed at 8337 down around 24 point. The market breadth turned flat as there were seen 1352 stocks advancing against 1389 stocks declining. The Nifty volatility index, India VIX stood at 15.9150 down around 2.77%. The mid-cap and small cap sectors ended down around 0.18% and 0.17% respectively.
Realty and Healthcare were the major losers in the sectorial front which ended down around 2.72% and 0.87% and buying were seen in Capital goods and Banking which ended up around 0.52% and 0.43% respectively.
The gainers in the stocks’ front were PNB and BHEL, closed up around 5.44% and 2.50% respectively.
The FIIs were net sellers in the cash market segment on 27 July 2015, Monday, sold shares worth Rs 859.94 crore. The DIIs on the other hand were buyers on 27 July, bought shares worth Rs 238.66 crore in the capital markets segment.
European markets rebounded on the strong corporate earnings. The US index futures were also in green.
SKM Egg products, HEG, Godrej CP, Dabur, Vedanta, UPL, Zydus Wellness, Advanta, Hikal, JSW Steel, Essar Oil, Butterfly, Navin Fluro, Yes Bank and Mphasis are some of the major ones which may announce their earnings on Wednesday.
Anand James, Co Head Technical Research Desk, Geojit BNP Paribas
Chinese market’s falls continued to cast a cloud on trading bias, but signs of bargain hunting were visible as investors took stock of the potential impact of recent developments on MAT, Participatory Notes. Infact, even though indices continued to be volatile and remained bearish, more stocks were seen to be advancing in NSE when compared to on Monday. Similar trend was also seen in declines, with only 638 stocks showing a decline on Tuesday as against 1085 stocks yesterday. Meanwhile, Gold prices slipped lower in international market, but the slippage was more pronounced in Indian market as rupee strengthened against US Dollar.
Gaurav Jain, Director, Hem Securities
Indices traded in a narrow range awaiting the clue from FOMC meet which begins from Tuesday. Mixed bag of corporate earnings also weighed on the sentiment. Continuing downfall in the commodities along with negative cues from key commodity market China also spooked the sentiment.