The BSE benchmark Sensex may have been off to a solid start today, but in the end, let go of all the gains and ended the day 134 points down as blue-chips Bajaj Auto and Lupin took a beating post their quarterly earnings and profit-booking kicked in.
For most part of the session, the market traded in a thin range.
June quarter numbers from other companies too remained off-colour, which clouded the sentiment.
On top of it, rupee’s fall against the dollar made investors cautious.
Market Outlook by Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services
The market strength was challenged three times at 8640 (Nifty) level during the past one week. Post a strong performance of the market during the last 1 month, India’s volatility was lowered to a 3 month low at 14.8. Now a tepid set of numbers to the initial Q1FY16 results and the poor start of the parliament session are pushing the risk higher.
The 30-share Sensex started on a firmer footing at 28,540.97, hitting the day’s high of 28,578.33 on hopes of passage of the key GST Bill and stronger Asian markets.
But in a reversal of fortunes, selling pressure built up in afternoon trade as the index closed the session lower by 134.09 points, or 0.47 per cent, at 28,370.84.
Of the 30-share index, 18 ended in the red.
Even the NSE Nifty closed shy of the 8,600 level, down 43.70 points, or 0.51 per cent, at 8,589.80. Intra-day, it shuttled between 8,654.75 and 8,573.80.
Market Wrap Up by Alex Mathews, Head Research, Geojit BNP Paribas Financial Services
The market closed negatively after trading sideways to negative during the day due to lack of fresh triggers. Investors remained sidelines in the absence of a positive surprise from the quarterly earnings.
Nifty today closed at 8589 down around 43 point. The market breadth was positive as there were seen 1524 stocks advancing against 1315 stocks declining. The Nifty volatility index, India VIX stood at 15.5200 up around 2.57%.
The major sectorial gainers for the day were Consumer Durables and Auto which closed up around 1.59% and 0.49% respectively. The losers on the other end were banking and Capital goods which ended down around 0.71% and 0.67% respectively.
The gainers in the stocks’ front were Cairn and Tata motors, closed up around 6.17% and 3.32% respectively. Selling was seen in Bajaj Auto and Lupin which ended down around 5.23% and 5.21% respectively.
The FIIs were net buyers in the cash market segment on 22 July 2015, Tuesday, bought shares worth Rs 450.32 crore. The DIIs on the other hand were sellers on 22 July, sold shares worth Rs 351.77 crore in the capital markets segment.
The European markets erased all its gains as of the strong euro against dollar. The US index futures were trading with positive note.
Companies like Tata Elxsi, ABB, BEL, Hitachi Home, Atul and Axis Bank may announce their earnings tomorrow.
Lupin was the big loser. The scrip fell 5.23 per cent after the drug maker reported a 16 per cent drop in consolidated net profit at Rs 525.02 crore for the June quarter.
Bajaj Auto too felt the heat, down 5.02 per cent, after its earnings numbers fell short of the crease despite a 37.14 per cent rise in standalone net profit.
RIL was in the same boat, down 0.46 per cent, in a cautious trade ahead of its earnings announcement tomorrow.
Sector-wise, technology fell the most followed by banking, capital goods, IT and healthcare.
European stocks were trading in the positive terrain while in Asia, key indices ended higher.
Market View by Anand James, Co Head Technical Research Desk, Geojit BNP Paribas
With several event risks lined up, yesterday’s relief rally failed to find more buyers, resulting in quick pull back. Meanwhile, with nearly 50% of Nifty 50 companies announcing lower net profit, results season have not been able to add momentum to rise seen in the early part of July. With F&O expiry scheduled for next week, roll overs have started, but at a feeble rate, with traders looking for more cues ahead of FOMC as well as RBI rate decisions.
“The market closed negatively after trading sideways to negative during the day due to lack of fresh triggers. Investors remained on the sidelines in the absence of a positive surprise from the quarterly earnings,” said Alex Mathews, Head Research, Geojit BNP Paribas Financial Services.
BSE small-cap was up 0.51 per cent while mid-cap closed lower by 0.16 per cent.
Market View by Gaurav Jain, Director, Hem Securities
Key benchmarks traded in a narrow range throughout the day. Week earnings by some key corporate, falling prices of commodities across the world signaling global slowdown weighed on the investor’s sentiment.
Foreign portfolio investors (FPIs) net bought shares worth Rs 450.32 crore yesterday while domestic institutional investors (DIIs) turned net sellers at Rs 351.77 crore, provisional data showed.
Pramit Brahmbhatt, Veracity Group CEO, said: “Investors preferred to book profit at higher levels as they doubted the further upside in the market. Now, the investors are waiting for the release of US unemployment data due for the day.”
The market breadth stayed positive as 1,531 stocks ended higher, 1,311 lower while 126 ruled steady. Total turnover rose to Rs 3,402.78 crore, from Rs 2,925.66 crore yesterday.