An evening walk down D-St: Sensex, Nifty close flat after a volatile session

Indian market consolidated in a narrow range on July 9, a day after D-Street witnessed its worst day of 2019. Sensex closed with marginal gains while Nifty held on to 11,550.

The final tally on D-Street – Sensex closed 10 points higher at 38,730 while Nifty ended 2.7 points down at 11,555.

Nifty bounced back after retesting its crucial support placed at 100-day moving average at 11,501 that resulted in a ‘Hammer’ pattern on the daily charts, which suggests the index could have formed a near-term bottom.

However, the confirmation would come if the index manages to close above 50-day exponential moving average (EMA) placed at 11,714, but on the other hand, a breach of 11,460 on the downside could fuel further selling pressure, suggest experts.

IT stocks witnessed selling pressure as investors turned cautious amid global growth slowdown and trade disputes. HCL Technologies fell 1.7 percent, Infosys slipped 0.29 percent, TCS closed 1.9 percent down ahead of the June quarter earnings.

“Lack of real growth in the economy while equity being at premium valuation is impacting the market. IT bellwethers slid ahead of earnings season as anxiety over global growth and trade disputes cast a cloud over revenue estimate,” Vinod Nair, Head of Research, Geojit Financial Services Ltd told Moneycontrol.

In terms of sectors, the S&P BSE Realty index rose 2.8 percent, followed by the S&P BSE Healthcare index that was up 1.8 percent, and the S&P BSE Capital Goods index that rose 1.6 percent.

On the losing front, Consumer Durable index fell 6.7 percent, followed by the IT and FMCG Index, which were down by about 1 percent each.

On the broader market front, the S&P BSE Midcap index rose 0.63 percent while the S&P BSE Smallcap index closed with gains of 0.05 percent.

Top Nifty gainers include Bajaj Finance, Sun Pharma, IOC, and Bajaj Finserv and on the losing front, Titan plunged over 12 percent, followed by UPL and GAIL India, which were down 2-3 percent.

Stocks in news:

Titan Company shares ended with loses of over 12 percent on July 9 after the company reported a slowdown in its jewellery business in June quarter. Consequently, Global brokerage Credit Suisse also downgraded the stock to neutral. The stock the biggest single-day intraday fall in last 11 years.

Hero Motocorp ended 3 percent higher on July 9 after the company revamped its leadership team. The world’s largest two-wheeler manufacturer said it has assigned the role of the Chief Technology Officer (CTO) to Vikram Kasbekar, while Rajat Bhargava will head the newly-created ‘Emerging Mobility’ business unit.

Shares of Bajaj Finance jumped over 5 percent after the company reported the highest loan growth in the last 11 quarters.

Shares of gaming and real estate company Delta Corp ended 1.5 percent lower after muted performance reported by the company in quarter ended June 2019.

Glenmark Pharmaceuticals shares ended 2.5 percent higher on July 9 after the company received approval from the US health regulator for the anti-anginal drug.

Global update:

Asia Pacific stocks ended lower amid dampened expectations on the Fed cutting rates this month. Shanghai composite edged down 0.18 percent to close at 2,928.23, while Shenzhen component declined 0.14 percent to finish at 9,198.78.

Hang Seng index fell 0.68 percent. Nikkei rose 0.14 percent to close at 21,565.15, while the Kospi tumbled 0.59 percent to close at 2,052.03. Australia’s ASX 200 edged down 0.1 percent to close at 6,665.70.

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