BSE Sensex marked their biggest weekly loss in eight, as blue chips such as Tata Motors slumped on weak earnings and on worries the Narendra Modi-led Bharatiya Janata Party may face defeat in the upcoming Delhi state elections.
The broader NSE index fell 0.58 per cent for the day, dropping 1.67 percent for the week, while the benchmark BSE index lost 0.46 per cent to mark a weekly fall of 1.6 per cent. The 30-share BSE index, had lost 830.80 points in the previous five sessions.
The indexes extended their losing streak for a sixth consecutive session to mark their biggest weekly loss since Dec. 12, 2014.
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Dipen Shah, Head- Private Client Group Research, Kotak Securities
Markets were down for the week. Below-expected quarterly numbers were largely responsible for the same. The PSU bank numbers raised concerns over their asset quality. Tata Motors’ results also failed to meet expectations. RBI kept policy rates unchanged, in line with expectations.
Going ahead, markets will focus on the outcome of Delhi assembly elections, remaining quarterly numbers and the budget. A growth-oriented budget with structural reforms will lead to further re-rating of the markets. However, any disappointment in the budget will be a negative for the markets.
Market Outlook by Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services
Poor Q3FY15 results from respective companies are impacting market and beta stocks too. Based to which concerns are being shown towards Banks, Metals and Auto sectors. The management outlook continues to be robust linking improvement in demand by the latter half. Hence based to budget outcome volatility can be stabilized. We believe that large part of valuation re-rating is over and momentum will depend to future earnings growth.
Market Wrap Up by Alex Mathews, Head Research, Geojit BNP Paribas Financial Services
Continuation of weak trends kept the market under pressure, especially in the second half of the day we saw heavy sell-off. The daily RSI has corrected from its overbought zone, but monthly RSI is still in the overbought can cause volatility.
Nifty today closed at 8661, down around 50 points. The market breadth stood negative as there were seen 879 stocks advancing against 1989 stocks declining. The Nifty volatility index, India VIX stood at 20.6850 up around 0.33%.
The mid-cap and small-cap sectors closed down around 1.06% and 1.82% respectively.
Barring the IT and FMCG sector, which ended up around 0.89% and 0.84% respectively all other sectors ended in red. The major losers for the day were Auto and Healthcare which closed down around 2.77% ad 1.72% respectively.
In the stocks’ front, selling were seen in DLF and Tata motors, closed down around 5.25% and 4.96% whereas buying were seen in Cairn and HDFC which closed up around 3% and 2.92% respectively.
The FIIs were net sellers in the capital market segment, sold shares worth Rs 27.43 crore on Thursday, 05 February 2015. On the other hand the DIIs were net buyers on 05 February 2014, bought shares worth Rs 325.61 crore as per the provisional data from the stock exchanges.
The European shares fell from their highest level in more than seven years and the US index futures were trading higher.
Aarti Inds, Zydus wellness, Voltamp, Ucal fuel, PEL, Mangalam Cement, NB Ventures, Premier, LT, Kohinoor, Hercules, DLF, Atlanta, Aptech, Corporation Bank and Asian Tiles are some of the companies which may announce their earnings on Monday.
Sensex down 133pts ahead of Delhi polls;logs worst wk in 2mths
(PTI) The benchmark Sensex today extended its losing streak for the sixth session in a row, slipping by 133.06 points and logging its worst week in two months due to poor bluechip earnings coupled with uncertainty in view of Delhi assembly polls.
Sustained foreign capital outflows and mixed global cues also affected trading sentiment, said stock market dealers.
Shares of auto, healthcare, banking, power, oil & gas and consumer durable were among the major laggards of the day.
The BSE Sensex resumed higher at 28,892.21 and firmed up further to a high of 28,922.85 on initial buying. However, it declined afterwards to 28,647.14 before concluding at 28,717.91, logging a net loss of 133.06 points or 0.46 per cent, from Thursday’s close.
On a weekly basis, the Sensex lost 465.04 points. This is its biggest weekly drop since the week ending December 12, 2014 when it had plunged by 1,107.42 points.
“Tata Motors dropped post weak Q3 results and other auto stocks also showed weak trend. Cement stocks were also among major losers. Weak global cues and speculation ahead of Delhi assembly elections led to further fall on the bourses,” said Bonanza Portfolio, Associate Fund Manager, Hiren Dhakan.
The CNX 50-share Nifty also fell by 50.65 points or 0.58 per cent to below the 8,700-mark at 8,661.05.
Asian stock markets ended mixed ahead of the closely-watched US jobs report. Key indices in Japan, Singapore and South Korea moved up by 0.14 per cent to 0.82 per cent while the indices in China, Hong Kong and Taiwan finished lower by 0.35 per cent to 1.93 per cent.
European stocks were trading lower after reports of disappointing German industrial production and as concerns mounted over Greece’s future in the euro zone. Key benchmark indices in Germany, France and the UK were off by 0.42 per cent to 0.85 per cent.
Foreign Portfolio Investors sold Indian shares worth a net Rs 27.43 crore yesterday, as per provisional data.
In six straight days, the BSE Sensex has dropped by 963.86 points or 3.25 per cent.
The stage is set for a battle royale in Delhi where polling will be held tomorrow for 70 seats in the Assembly elections billed as a referendum on Prime Minister Narendra Modi, a view rejected by the BJP leadership.
The battle to win control over the national capital saw a resurgent Aam Aadmi Party giving a tough fight to the BJP which has staked its all on Modi’s image.
In today’s session, 21 scrips out of the 30-share Sensex closed lower while nine others finished higher.
Major losers include Tata Motors (5.05 per cent), BHEL (4.79 per cent), Sun Pharma (2.98 per cent), Tata Steel (2.67 per cent), M&M (2.59 per cent), Hero Motocorp (2.37 per cent), HDFC Bank (1.92 per cent), Tata Power (1.74 per cent), ICICI Bank (1.73 per cent), Coal India (1.46 per cent), ONGC (1.39 per cent), RIL (1.29 per cent) and Cipla (1.02 per cent).
However, HDFC rose by 2.45 per cent, Infosys 1.63 per cent, Sesa Sterlite 1.35 per cent, ITC 1.32 per cent and Bharti Airtel 1.14 per cent in the Sensex.
Among the S&P BSE sectoral indices, the Auto index fell by 2.77 per cent, followed by Healthcare (1.72 per cent), Bankex (1.27 per cent), Power (1.25 per cent), Oil & Gas (1.09 per cent) and Consumer Durable (1.01 per cent).
However, IT and Teck indices rose by 0.89 per cent and 0.74 per cent respectively.
Small-cap and Mid-cap indices dropped by 1.82 per cent and 1.06 per cent respectively due to persistent selling pressure from retail investors.
As a result, the total market breadth remained negative as 2,015 stocks ended in red, 859 finished in green while 98 ruled steady. The total turnover dropped further to Rs 3,194.19 crore from Rs 3,698.95 crore yesterday.