The News International Team
After bouts of volatility, the market settled trade with 0.8 percent cut on Tuesday and continued downtrend for fifth consecutive session. Healthcare, FMCG, oil, auto and select banking & financials stocks dragged.
The 30-share BSE Sensex fell 210.17 points to 27676.04 and the 50-share NSE Nifty closed below the 8400-mark, down 70.35 points to 8377.75. However, the fall in broader markets was less compared to benchmarks; the BSE Midcap and Smallcap indices were down over 0.3 percent.
Fears of weak corporate earnings during March quarter, Chinese slow down and slow economic recovery, and tax worries for FIIs continued to weigh on sentiment.
Technical experts believe the market may fall further, though fundamentally the market is strong.
Vivek Patil of Vivekpatil.com said the market may touch 22000 before monsoons. According to him, once the market corrects to 22000-23000 kind of levels, it may again rally up to 30000.
Mark Mobius of Franklin Templeton Investments remains bullish on Indian equities despite the recent dip and expects about 12-15 percent annualised returns from India.
The only dark cloud, according to him, is the recent development on minimum alternate tax demand on FIIs. He says this is a major issue for portfolio investors and if not resolved, FIIs could look elsewhere.
The rupee recovered after breaching 63-mark in morning trade and touching intraday lows of 63.15 against the dollar, the lowest level since January 8. The rupee recovered as exporters and state-run banks sold dollars.
Meanwhile, the Maharashtra government today scrapped the Mumbai Development Plan 2015-2034 and directed the BMC to submit a reworked plan in the next 4 months. Chief Minister, Devendra Fadnavis said the reworked development plan will be put up for public review.
Sun Pharma remained the biggest loser on Sensex throughout the session, down 8.86 percent after seeing multiple block deals on BSE and NSE at Rs 930 to Rs 968 per share as Daiichi Sankyo sold its entire 8.9 percent stake in the company.
HCL Technologies closed off day’s low, down 3.5 percent. The stock tanked 10 percent intraday after IT major reported a miss on all counts in Q3. Dollar revenue came in lower than estimates and the rupee revenue declined by 0.17 percent Q-o-Q.
HUL extended its losses in late trade, falling 4.4 percent followed by Maruti Suzuki, Reliance Industries, Tata Motors, Dr Reddy’s Labs, Hindalco, NTPC and Bajaj Auto with 1-3 percent decline.
However, Wipro gained 0.7 percent ahead of its fourth quarter earnings later today. Infosys, Axis Bank, SBI, Sesa Sterlite, Tata Steel, Hero Motocorp and Coal India advanced 0.5-1.6 percent.
In the broader space, Lanco Infratech climbed 9 percent as the company has successfully completed sale of 1200 MW Udupi power plant to Adani Power. Air cooler manufacturer Symphony jumped 5 percent as its Q3 net profit shot up 35.1 percent year-on-year to Rs 36.5 crore, driven by strong sales numbers and realisation.
Tata Sponge crashed 9 percent as the company reported a decline of 25 percent in Q4 total income to Rs 160.3 crore with profits declining 79 percent to Rs 8.57 crore year-on-year. Ramco Systems slipped over 4 percent as the company saw profits declining 46 percent sequentially to Rs 43.5 crore and margin came in lower at 19 percent versus 23 percent.
Among other midcaps, HOV Services, Apollo Tyres, Sharon Bio Medicine, Motherson Sumi, Crompton Greaves, BF Utilities, SPARC, Jaiprakash Power and Educomp Solutions were down 4-20 percent.
Global cues were strong today. In Asia, Hang Seng rallied 755 points while Shanghai and Nikkei close with more than 1.8 percent and 1.4 percent gains, respectively. European markets too trade with marginal gains today (at 16 hours IST) after Credit Suisse reported a 23 percent rise in net profits.