Domestic equity markets opened on a flat note on Friday. Shares of healthcare, metal and oil & gas were trading in posive zone in the early trade.
The BSE Sensex and NSE Nifty closed in red on Friday following weak industrial earnings. The BSE Sensex and NSE Nifty ended down 0.22 per cent and 0.28 per cent at 28,236.39 and 8,564.60 per cent, respectively.
“Weak earnings by industrials’ have marred the performance of an otherwise fine April-June earnings season,” said Deven Choksey, managing director at K R Choksey Securities.
Shares of auto and oil & gas ended the day in positive terrain.
ONGC (4.28 per cent), Tata Motors (2.52 per cent), BPCL (2.17 per cent), Vedanta (2.17 per cent) and Grasim (1.49 per cent) remained top gainers in the Nifty. On the other hand, Bhel (down 5.58 per cent), Coal India (down 3.71 per cent) and State Bank of India (down 2.46 per cent) stood at the bottom of the performance chart on the index.
Shares of healthcare, metal and oil & gas were trading in positive zone in the early trade.
On Thursday, the key benchmark index BSE Sensex gained 75 points, or 0.27 per cent, to 28,298.13. The NSE Nifty index also gained 20.70 points, or 0.24 per cent, to 8,588.65.
Here is what experts have got to say on Friday’s trading session:
Market Outlook by Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services
The market is showing signs of fatigue after the strong outperformance it put up during the last 2 months. Also, Midcaps are catching-up with the healthy performance shown by blue-chips. The important reasons for this performance are the increase in domestic inflows, the improvement in operating margin leading to fair Q1FY16 results and the cut in commodities & gold prices. The future performance of the markets will depend on the improvement in business confidence which is still low as well as the uptrend in business volume in 2HFY16. The highest risk is that the market has high hopes of increasing earnings in the latter half of the fiscal year. Currently, the Sensex valuation is marginally at the upper end of 16x – 17x on P/E FY16.
Market Wrap Up by Alex Mathews, Head Research, Geojit BNP Paribas Financial Services
The markets today showed sideways movements taking cues from global markets. Also the weakness some of the heavy weight counters kept the markets under pressure. Market participants were taken a cautious approach ahead of US job data that could act as a strong cue to when the Fed will raise interest rates. Nifty today closed at 8564 down around 24 points. The market breadth was negative as there were seen 1382 stocks advancing against 1539 stocks declining. The Nifty volatility index, India VIX stood at 14.9100 up around 1.22%. The mid-cap sector and the small cap sector ended down around 0.24% and 0.14% respectively.
Majority of the sectors were in the negative zone and the major losers were Metal and Banking, which ended down around 0.92% and 0.74% respectively. The gainers on the other end were Oil & gas and Consumer Durables which ended up around 1.97% and 0.46% respectively.
The gainers in the stocks’ front were ONGC and Tata Motors, closed up around 4.28% and 2.52% respectively. Selling was seen in BHEL and Coal India, which ended down around 5.58% and 3.71% respectively.
Market View by Anand James, Co Head Technical Research Desk, Geojit BNP Paribas
With earnings numbers remaining a mixed bag, and with few domestic triggers, Nifty’s penetration of 8600 for the third time this week, failed to attract momentum. A good US jobs data could further embellish hopes of a rate hike, but signals from ADP data released earlier this week suggest that there could be surprises. International gold prices did inch up towards $1100 a troy ounce, after remaining near 1080 through the last fortnight. Meanwhile, oil continues to slide, suggesting the benefits of lower commodity prices could continue reflect favourably in the margins in the coming quarters, which should also benefit from the improved government capex.
Market View by Gaurav Jain, Director, Hem Securities
Markets continue to trade in consolidation mood; shutting the last day of the week lower. Disappointing earnings by State-run BHEL and profit booking in select banks, financials and pharma stocks dragged the indices lower. Investors prefer to book profit ahead of key US marco economic data which will be released tonight.