The losing run of the Indian market continued as the equity benchmarks Sensex and Nifty closed in the red for the sixth consecutive session on October 7.
In the last six sessions of losses, both Sensex and Nifty have come off nearly 4 percent while the overall market capitalisation of BSE-listed firms has dropped to Rs 1,42,24,897.46 crore from Rs 1,48,45,854.70 crore on September 26, making investors poorer by Rs 6.21 lakh crore.
After opening lower, key indices moved higher and traded with decent gains for the most part of the day. However, the market failed to hold the gains as a fresh wave of selling emerged at the fag end.
Analysts said market continued its recent trend due to the lack of fresh triggers and the second-quarter earnings will dictate the mood of the market in the near-term.
“Mixed global cues led to a flat start but lack of follow-up buying capped upside. Going ahead, we may see some bounce due to oversold positions in the index but the bias would remain on the negative side. We reiterate our cautious view and suggest preferring hedged trades,” said Ajit Mishra, Vice President – Research, Religare Broking.
Sensex closed 141 points, or 0.38 percent lower at 37,531.98 with 22 stocks ending in the red and 8 in the green.
The Nifty index settled 48 points, or 0.43 percent, lower at 11,126.40. Among the 50 stocks in the index, 32 suffered losses.
“Nifty is again trading near its previous breakout zone of 11,080-11,060 zone, making it good support for the near-term. If the index manages to hold the said levels, we may see a good bounce towards 11,250 in the near-term,” said Rohit Singre, Senior Technical Analyst at LKP Securities. .
Yes Bank, Axis Bank, Bajaj Auto, ICICI Bank and Bharti Airtel emerged as the top gainers in the Sensex index, while Tata Steel, ONGC, ITC, Mahindra & Mahindra and IndusInd Bank closed as the top losers.
In line with the benchmark, BSE Midcap and Smallcap indices also fell, closing 0.24 percent and 0.75 percent lower, respectively.
On the sectoral front, barring BSE Consumer Durables (up 1.06 percent), Telecom (up 0.32 percent) and Bankex (up 0.26 percent), all other incurred losses, with BSE Healthcare (down 2.43 percent) , Oil & Gas (down 1.84 percent) and Capital Goods (down 1.65 percent), losing significantly.
As many as 279 stocks, including Ambuja Cements, Aegis Logistics, Aurobindo Pharma, Indiabulls Housing Finance, IFCI, IndusInd Bank, Inox Wind, Itd Cementation India, L&T Finance Holdings, LIC Housing Finance, Lupin, Maharashtra Seamless, NCC, Piramal Enterprises and Zee Entertainment Enterprises, hit 52-week lows.
Moreover, 332 stocks, including Indiabulls Integrated Services, Lakshmi Vilas Bank, SORIL Infra Resources, Reliance Home Finance, Sintex Industries, Unitech and Gammon Infrastructure Projects, hit their lower circuits on BSE.
Top news of the day:
The Centre has given its green nod for developing a commercial airport in Kutch, Gujarat, entailing an investment of about Rs 1,400 crore.
Activists and leaders of the opposition Congress and NCP on Monday welcomed the Supreme Court’s order restraining authorities from cutting anymore trees in Aarey Colony here to make way for a Metro car shed.
A key Japanese economic index fell in August and the government on Monday downgraded its view to “worsening”, indicating the export-reliant economy might face slipping into recession, Reuters reported.
Stocks in news:
Shares of YES Bank rallied 8.19 percent to close at Rs 45.60 on BSE on October 7 after a media report said that the private lender was in talks with some strategic investors for investment.
Aurobindo Pharma plunged 19.16 percent to Rs 458.50 after reports that the company had received USFDA’s adverse observation for its unit-7.
Shares of Zee Entertainment Enterprises closed 6.21 percent higher at Rs 251.50 amid increase in promoters’ total pledge to 90 percent along with loan liability of Rs 7,000 crore.
Shares of Bharat Petroleum Corporation (BPCL) fell 4.80 percent to Rs 490.45 after the government quietly cleared the way for privatisation of the company.
Shares of Glenmark Pharmaceuticals plunged 9.30 percent to end at Rs 286.30 after the US Food & Drug Administration issued a warning letter to the company’s Baddi facility.
Shares of Tata Motors slipped 1.76 percent to Rs 117.45 after JLR’s UK sales dropped during September month. Luxury carmaker Jaguar Land Rover sold 18,843 units in United Kingdom in September 2019, lower by 5.2 percent, compared to 19,874 units sold in the same month last year.
Technical view on the market:
“The index has entered the area of 11,180-11,100, which was acting as a resistance zone in August – September. Going ahead, the 61.8 percent retracement of the recent rise i.e. 11,060 and the key psychological level of 11,000 will be the key supports to watch out for. On the higher side, the Nifty needs to take out the near-term hurdle zone of 11,200-11,250 to turn the trajectory up again,” said Gaurav Ratnaparkhi, Senior Technical Analyst at Sharekhan by BNP Paribas.Get access to India’s fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code “GETPRO”. Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.