Moneycontrol BureauThere were some heady swings in market with benchmark indices ending lower on Monday despite sharp recovery after major loss in early trade. Domestic bears followed China turmoil which continued for second week. Investors were also cautious ahead of December earnings which is expected to be tepid.
Crisil thinks Q3 will be sixth consecutive quarter of single-digit topline growth. It expects Q3 revenue growth to be tepid at 2 percent and sees a 60-70 basis points (bps) decline in the overall EBITDA margins.
Meanwhile, the Sensex ended down 109.29 points or 0.4 percent at 24825.04 and the Nifty slipped 37.50 points or 0.5 percent at 7563.85. About 1241 shares advanced, 1550 shares declined and 134 shares were unchanged.
There was no stopping in the rout in China as stocks hit their lowest level in 3 months even as the central bank bolsters the yuan for the second straight session. The Shanghai Composite lost over 5 percent and that took markets across Asia on a downward spiral.
The yuan was guided higher by the People’s Bank Of China for the second straight session. The central bank also assured investors that the economy is “stable & healthy”.
Just like the markets in China, rebound in crude oil also proved to be short-lived. Brent broke below USD 33-mark in intra-day trade. The speculators have increased their short-positions and long-positions have seen drastic cuts. It is a clear indication that not may have faith in the market recovery anytime soon. Crude oil prices drop over 2 percent as traders cut long-positions.
Back home, pharma, IT, banks and capital goods faced severe burns in today’s trade.
Jonathan Schiessl of Ashburton does not think India is trading at attractive valuations yet. However, two things are definitely in favour of the nation — lower commodity prices and earnings recovery, which he believes will materialise soon. He says the Indian market offers good value with a three-year horizon and largecaps are offering better value than midcaps.
Reliance, Maruti, NTPC and Hindalco were top gainers in the Sensex. Tata Motors ended with 2 percent gains despite China slowdown amidst weak market condition. The four-wheeler major is riding high on its British subsidiary- Jaguar Land Rover’s strong sales in December and overall performance in December. In December, JLR global retail sales saw a growth of 20 percent annually at 49553. Jaguar sales rose 20 percent (Y-o-Y) at 838 2units while Landrover sales grew 20 percent (Y-o-Y) at 41171 units.
On the losing side were M&M, Wipro, Adani Ports, BHEL and Dr Reddy’s. Shares of Sun TV slipped over 7 percent intraday. Former telecom minister Dayanidhi Maran, his brother and Sun Group chief Kalanithi Maran, and four others were charge sheeted by the Enforcement Directorate in the Special 2G court in connection with a money laundering case lodged in the Aircel-Maxis deal.
TCS ended with 1 percent down ahead of its September-December quarter earnings to be announced tomorrow. According to a CNBC-TV18 poll, profit in Q3 is expected to be marginally down 0.8 percent at Rs 6005 crore against Rs 6055.2 crore in preceding quarter while revenue is seen at Rs 27575 crore, up 1.5 percent from Rs 27165 crore on sequential basis.