Fifth straight day of fall; Nifty slips below 200-EMA

Indian market fell for the fifth consecutive day in a row on July 24 pushing Nifty below its crucial support at 200-day Exponential Moving Average (EMA) while Sensex saw a cut of more than 100 points.

The final tally on D-Street – Sensex fell 135 points to 37,847 while Nifty closed 59 points lower at 11,271 to end at a fresh 2-month low.

The broader market underperformed as the S&P BSE Smallcap index and the Midcap index plunged more than 1 percent each.

In terms of sectors, the S&P BSE Metal index plunged 2.4 percent, followed by the S&P BSE Auto index which was down 1.9 percent, and the S&P BSE Oil & Gas index that dropped 1.67 percent.

Experts feel that slowdown concerns have dampened the sentiment and persistent selling by foreign investors has capped the upside along with muted corporate results. FIIs have pulled out more than Rs 11,000 crore from the cash segment of Indian equity markets in July.

“Investors turned sellers on concerns that the economy is moving through a slowdown phase. IMF lowered GDP growth forecast by 30bps for 2019 based on weak domestic demand outlook that fuelled a sell-off in a market where sentiment is already hurt due to tax concerns,” Vinod Nair, Head of Research, Geojit Financial Services Ltd told Moneycontrol.

“Mixed Q1FY20 results, the outflow of foreign funds and weakening rupee to weigh on investor sentiments going ahead,” he said.

Top Sensex gainers include HUL, HDFC and Asian Paints while Bajaj Finance, Tata Steel, Tata Motors and Tata Motors DVR saw selling pressure, down over 3 percent each.

Stocks in news:

Tata Motors shares slipped 3 percent after global agency Fitch downgraded company’s long term issuer rating with a negative outlook.

Torrent Pharmaceuticals rallied over 8 percent as global brokerages remained bullish on the stock, expecting double-digit return from current levels.

Shares of HDFC Life Insurance Company declined nearly 2 percent despite global brokerage houses raised price target sharply after stellar earnings performance in Q1.

Share price of Bayer CropScience shed 3 percent after the company posted poor numbers for the quarter ended June 2019.

Global update:

Downbeat earnings, as well as weaker-than-expected purchasing manager surveys in France and Germany, took European shares and the euro a leg lower, with the single currency hitting two-month lows, reported Reuters.

Asian markets ended mostly higher on July 24 on the back of developments on the US-China trade front. Hang Seng gained 0.20 percent at 28,524.04, Nikkei rose 0.41 percent at 21,709.57, while Kospi fell 0.91 percent to 2,082.30.