Indian markets that started off on a positive note failed to keep the momentum going as bears took control of D-Street on July 23 and pushed Nifty lower for the fourth consecutive day in a row.
Sensex failed to hold on to its crucial psychological support at 38,000 weighed down by selling in HDFC twins. The index witnessed an intraday swing of more than 300 points.
The final tally on D-Street – Sensex fell 48 points to 37,982 while the Nifty closed 15 points down at 11,331.
Amongst the sectoral indices, FMCG, realty, power and consumer durables witnessed decent buying, while the other sectors like auto, banks, metals and healthcare were the top losers ending the session in the red.
The broader market indices exhibited mixed trend wherein BSE Midcap ended with losses of 0.6 percent while BSE Smallcap closed 0.4 percent higher.
As many as 383 stocks on the BSE hit 52-week low including Bosch, V-Mart, HEG, CEAT, M&M, TVS Motor, M&M Finance, Apollo Tyres, Ashok Leyland, Central Bank of India and Cox & Kings, among others.
Experts are of the view that in the absence of any major cues market is likely to remain under pressure and consolidation could continue for some more time.
Concern on liquidity and banks’ increasing exposure to risky assets based on Q1 results further dampened the sentiment, suggest experts.
“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 the near term,” Ajit Mishra, Vice President, Research, Religare Broking Ltd said.
“The focus of investors would be on Q1FY20 earnings season, as it is likely to induce stock-specific volatility. 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,” he said.
Top Sensex gainers include Power Grid, Kotak Mahindra Bank, and Hero MotoCorp. State Bank of India, HDFC, and HDFC Bank were among top Sensex losers.
Stocks in news:
Shares of TVS Motor Company slipped 2 percent after brokerages remained bearish on the stock and slashed price target, citing weak management commentary.
Kotak Mahindra Bank rose nearly 3 percent and was also the top Sensex gainer after it reported 32.7 percent YoY growth in the standalone profit in the April-June period to Rs 1,360.2 crore. Most brokerage firms retained their rating for Kotak Mahindra Bank after June quarter results but CLSA and Jefferies raised their respective 12-month target price.
Share price of Mastek slipped nearly 10 percent after the company reported a poor set of numbers in the quarter ended June 2019 (Q1FY20).
Shares of Alembic Pharmaceuticals gained 3 percent after the company received approval from the US Food & Drug Administration (USFDA).
Va Tech Wabag ended 6 percent higher on July 23 after the company won an order worth Rs 1,187 crore.
Cupid gained 20 percent after the company reported strong numbers for the quarter ended June 2019.
European indices are trading higher on hopes that the European Central Bank will cut interest rates on July 25 by 10 basis points to boost economic growth.
Asian markets ended higher as investors were closely watching central bank meetings scheduled in the next few days.