Ending the three-day rising streak, benchmark equity indices fell today erasing gains of the last two trading sessions.
Ending the three-day rising streak, benchmark equity indices fell today erasing gains of the last two trading sessions. While BSE Sensex slipped 318 points, NSE Nifty lost 90 points in the intraday trade Thursday. The Sensex fall was owing to a sell-off in the index heavyweights RIL, TCS, ICICI Bank and SBI. The 30-share index settled at 38,897.46 and the broader NSE Nifty broke below the 11,600 mark, ending at 11,596.90. Yes Bank, ONGC, Tata Motors, M&M, Maruti, Vedanta, Bajaj Auto, TCS, SBI and HCL Tech were among the major losers in Sensex pack. HDFC, Kotak Bank, HDFC Bank and ITC were the major gainers.
“Nifty couldn’t surpass its crucial hurdle at 11,700 and lost nearly a percent. Weak global cues combined with mixed earnings announcement triggered feeble start. It gradually inched lower as the day progressed and settled around the day’s low. Mostly sectoral indices traded in tandem with the benchmark index and the broader indices remained under pressure”, Ajit Mishra Vice President, Research, Religare Broking said.
The pressure on equity indices may not ease anytime soon, owing to mixed earnings announcements and contrary global triggers, he added. The traders are only left with the option to align their positions accordingly and use rebound to create shorts in the benchmark index, he also said.
“After touching levels of 11700 yesterday, there were expectations of a further upmove. However, markets disappointed once again and closed the day in red. The result season is creating stock specific moves and a few stocks such as Yes Bank, Colgate, HDFC AMC were in focus today. After reporting a lower-than-expected quarterly profit and increase in slippages due to continuation of the bad-loan clean-up process, Yes Bank fell over 12% today,” Umesh Mehta, Head of Research, Samco Securities said.