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Global fall drags Sensex 220 pts, Nifty just holds 7700


TheNewsInternational Team

The market extended losses for fifth consecutive session Tuesday, tracking nervousness in global peers post sharp fall in crude oil prices in the previous session. The broader markets too get hammered.

The 30-share BSE Sensex fell 219.78 points or 0.86 percent to 25310.33 and the 50-share NSE Nifty managed to close above 7700-mark, down 63.70 points or 0.82 percent to 7701.70 after hitting an intraday low of 7685.45.

The market has been in a broad range of 7500-8200 for last few months, which may continue at least till December quarter earnings, say analysts. According to them, major selling pressure can be seen if it breaks 7500 but 8200 on the upside looks unlikely in near term.

Neeraj Deewan, director of Quantum Securities says the market will most probably test September lows and traders & investors alike should be prepared for it as nothing is really happening for the market — still some time to go for the US Federal Reserve action and back home, too, nothing concrete is happening on the goods & services tax (GST) front.

Also read – What India needs to do to obtain ratings upgrade: Fitch

Gautam Chhaochharia, Head of India Research at UBS Securities says Indian shares are likely to follow a sideways trend in the near term in the absence of a real recovery in earnings, which will likely turn only in the second half of the next fiscal (FY17).

Steep fall of more than 5 percent in crude oil prices dampened sentiment across the globe today. Asian equities ended lower with Shanghai, Nikkei and Hang Seng down 1-2 percent. European equities were trading half a percent lower. Oil prices rebounded from near seven-year low today. Brent crude rose 1 percent to USD 41.16 a barrel (at 16 hours IST).

On home turf, banking & financials, metals, infra, oil and pharma stocks dragged the market lower.

Market Close – 8th Dec
Created by Moneycontrol

Cairn India tanked 5.8 percent and GAIL was down 5 percent following correction in crude oil prices.

NSE Metal index fell the most among major sectoral indices, down over 3 percent on weakness in global commodity stocks. Hindalco Industries, Vedanta, Tata Steel and Coal India dropped 3-5 percent.

NSE Realty index lost 4 percent as Indiabulls Real Estate, DB Realty, HDIL and Parsvnath Developers were top midcap losers with 6-8 percent loss.

Tata Motors was up 0.7 percent on best ever November retail sales by Jaguar Land Rover. JLR retail sales increased 27 percent year-on-year to 46,547 vehicles on strong performance of the UK and European markets.

ITC rebounded on short covering after a 6.6 percent decline in previous session. Among others, ONGC, Dr Reddy’s Labs and GAIL plunged 3.5-5 percent followed by HDFC Bank, HDFC, Reliance Industries, L&T and SBI with more than 1 percent loss.

In broader space, Amtek Auto surged 11 percent after a media report indicated that JP Morgan Asset Management Company managed to sell debt papers of Amtek to private equity firm. Its other group companies like Castex Technologies and Metalyst Forging gained 14 percent and 8 percent, respectively.

Unichem Laboratories climbed over 2 percent on getting approval from the US health regulator for anti-hypertensive drug Irbesartan tablets.

Adani Power lost nearly 10 percent after Macquarie slashed target price on the stock by 47 percent to Rs 23 from Rs 43 earlier. The brokerage expects FY16 loss of Rs 1,350 crore against profit of Rs 490 crore earlier.

The market breadth continued to be in favour of declines. More than two shares declined for every share advancing on the Bombay Stock Exchange.


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