The headline indices Sensex and Nifty snapped their gaining streak and ended Wednesday's session with heavy losses lead by banking and auto stocks.
The headline indices Sensex and Nifty snapped their gaining streak and ended Wednesday’s session with heavy losses lead by banking and auto stocks. After plunging 586 points intra-day,the 30-share barometer settled 503.62 points or 1.29% lower at 38,593.52. The broader Nifty slumped 148 points or 1.28% down to 11,440.20. SBI, Tata Motors, Maruti Suzuki, Yes Bank, M&M, HDFC twins, ITC, Vedanta, Hero MotoCorp, Tata Steel and L&T, were among the biggest losers, shedding up to 7.4%. PowerGrid, TCS, NTPC, HCL Tech, Tech Mahindra and RIL were the beggest gainers, jumping up to 4.39 per cent.
Taking stock of the volatile session, Ajit Mishra Vice President, Research, Religare Broking said that the stock market is hovering around its peak levels and some consolidation can be expected in the near term. “From medium to long-term perspective, outcome of RBI monetary policy and revival in corporate earnings will be crucial, as it is likely to dictate further market trend,” Mishra said. On the global front, geo-political developments between US-Iran would be on investor’s radar, as well as any further escalation of US-China trade war would have an adverse impact on overall markets and economy, he added.
According to Sahaj Agarwal, Head of Derivatives, Kotak Securities there was some profit booking seen after the robust 2-day rally in stock market. “We believe 11700 is a stiff resistance for Nifty50 and cross of the same will trigger next round of momentum up-move. Immediate range for the index is seen at 11,250-11,700. Expect range bound movement in the near term which should be followed by an upside breakout in the October series,” he said.
Meanwhile, amid growing concerns of a slowdown, the Asian Development Bank on Wednesday sharply cut India’s growth forecast to 6.5% for the current fiscal. According to its latest forecast, South Asia’s growth momentum has softened. For the region, the growth forecasts were lowered to 6.2 per cent for 2019 and 6.7 per cent for 2020.