Positive global cues fail to cheer markets; Nifty falls below 10,900

Equities continued their negative run for the second straight day as last hour selling weighed big. The Nifty closed below 10,900, while the Sensex slipped over 300 points from the day’s high points.

Interestingly, the fall took place due to weak domestic cues, as global markets witnessed a rally. Investors there were hopeful of some positives from US-China trade talks.

The day began on a subdued note, with the Sensex and Nifty opening flat. But selling it he last hour dragged the market lower.

Banks, automobiles, consumption, and IT were the top losers, while metals and pharma were the big gainers. The midcap index has ended flat.

At the close of market hours, the Sensex was down 241.41 points or 0.66% at 36153.62, and the Nifty down 57.40 points or 0.53% at 10831.40. The market breadth was negative as 1050 shares advanced, against a decline of 1452 shares, while 131 shares were unchanged.

Sun Pharma, Coal India, JSW Steel and Zee Entertainment gained the most, while Hero MotoCorp, HDFC, and Bharti Infratel lost the most.

“In the absence of any major domestic and global triggers selling pressure could continue in the coming sessions, hence we maintain our cautious stance on the Indian markets in near term. The focus of investors would be on last leg of Q3FY19 earnings season. Further, market participants would closely monitor the progress of trade talks between US-China, behaviour of crude oil prices and fluctuation in currency as it would further induce volatility in the markets. We would advise Investors to stay focused on selective blue chip companies. However, considering the near term uncertainty, traders should strictly hedge their leveraged positions,” Jayant Manglik, President at Religare Broking said in a statement.

Stocks in the News

Axis Bank’s shares traded lower despite the non-retail portion of the offer for sale getting fully subscribed.

Hindalco slipped over 2 percent from highs after reporting Q3 of FY19.

NCC ended around 6 percent higher after it posted steady Q3 FY19 numbers.

Private sector lender Karur Vysya Bank’s third quarter (October-December) net profit fell sharply by 70.3 percent year-on-year to Rs 21.2 crore, dented by higher provisions and tepid NII growth. The stock closed 2 percent lower.

Ipca Laboratories has reported a whopping 51.7 percent on year increase in third quarter profit to Rs 160.2 crore, driven by strong operating income and forex gain. The stock ended 2 percent higher.

Carbon and graphite product manufacturing company HEG has reported healthy earnings for the quarter ended December 2018 as profit jumped 153.5 percent year-on-year to Rs 867 crore on strong revenue as well as operating income. The scrip closed 9 percent higher.

Global Markets

Stocks in Europe were higher. Stoxx 600 was up by 0.6 percent.

Stocks in major Asian markets were higher; Nikkei 225 jumped 2.61 percent to close at 20,864.21. The Topix gained 2.16 percent to finish its trading day at 1,572.60.