Equity benchmarks fell for second consecutive session on Tuesday, tracking weakness in global peers amid terrorism concern and ahead of expiry of November futures and options contracts. Technology, infrastructure, auto and select banks stocks drove market down.
The 30-share BSE Sensex declined 43.60 points to 25775.74 and the 50-share NSE Nifty slipped 17.65 points to 7831.60. The broader markets continued to outperform benchmarks with the BSE Midcap and Smallcap indices closing flat with a positive bias.
Analysts expect the Nifty to be in 7800-7900 range on Thursday, the expiry day but in near term, RBI policy (December 2) & FOMC meet (December 15-16) will be key factors to watch out for.
Mahesh Nandurkar, CLSA says mood of foreign investors at CLSA’s India forum was visibly less upbeat against last year, adding, corporate commentary was also more balanced.
He believes that this is a healthy resetting of expectations, especially as some green shoots are becoming visible now.
Also read – Nifty may break 7500 if Q3 fails, see 9500 in H216; GST key: Kumar
On the global front, European markets were trading sharply lower amid increased concerns over the threat of terrorism. Britain’s FTSE & Germany’s DAX were down 0.8 percent each and France’s CAC fell 1.4 percent (at 16 hours IST). Asian markets were mixed at close.
Back home, the equity market will remain shut on Wednesday for Gurunanak Jayanti holiday.
Sun Pharma was down 1.5 percent. Credit Suisse has maintained neutral rating on the stock, saying in the worst case scenario, there could be a further 10 percent downside and the clarity on whether Halol gets a clearance or a warning letter could take another six months.
Country’s largest car manufacturer Maruti Suzuki declined 2 percent. Proxy advisory firm, Institutional Investor Advisory Services (IiAS) in a letter, on Monday, recommended investors of the company to vote against resolution on the parent company’s earlier proposal of developing a manufacturing plant for Maruti. Suzuki has proposed to open the manufacturing facility in Gujarat with an objective of supplying vehicle parts to its Indian subsidiary.
Bosch shares slipped 3 percent after Credit Suisse has initiated coverage on the stock with an underperform rating and a target price of Rs 15300 per share indicating 20 percent downside potential. The brokerage is concerned on growth of diesel cars as share of diesel variants has already come off in the past two years and it may fall further.
Among other largecaps, Infosys, L&T, TCS, Bajaj Auto, Wipro and NTPC were prominent losers on Sensex, down 1-2 percent while HDFC, Reliance Industries, HUL, Lupin and Bharti Airtel gained 1-2 percent.
In broader space, Reliance Capital was up 3.7 percent after Japan-based Nippon Life increased its stake in Reliance Life Insurance by 23 percent to 49 percent by investing Rs 2,265 crore.
Optiemus Infracom was locked at 20 percent upper circuit after it entered into joint venture agreement for mobile handsets manufacturing with Taiwan-based company Wistron Corporation.
Gammon India was also up 20 percent after lenders decided to take control of the company by converting debt into equity shares. Lanco Infratech too shot up 20 percent as the infrastructure company turned profitable for the first time after losses in three years and favourable tariff order from UPERC.
The market breadth was in favour of advances as about 1466 shares closed in green against selling pressure in 1192 shares.