Market resumes downward march ahead of key earnings

The Indian market resumed its downward march on October 10 as investors took money off the table after the healthy gains in the previous session ahead of key earnings.

The market remained in the lower terrain throughout the session due to the lack of fresh triggers at home. Global sentiment was also fragile ahead of the top-level negotiations between the US and China regarding their trade tussle.

“Market remained under pressure, tracking weak domestic cues and mixed global markets. Besides, the anxiety ahead of key earnings also weighed on sentiment,” said Ajit Mishra, Vice President – Research at Religare Broking.

The concerns over the deteriorating health of the economy also continued weighing on investor sentiment.

Moody’s Investors Service today slashed its 2019-20 GDP growth forecast for India to 5.8 percent from 6.2 percent earlier.

As per PTI, Moody’s attributed the deceleration to an investment-led slowdown that has broadened into consumption, driven by financial stress among rural households and weak job creation.

With a fall of 298 points, or 0.78 percent, Sensex settled at 37,880.40, with 22 stocks in the red and 8 in the green.

Bharti Airtel, Reliance Industries, Hindustan Unilever, HCL Technologies and Power Grid Corporation settled as the top gainers in the Sensex index, while IndusInd Bank, Yes Bank, Tata Motors, Vedanta and ICICI Bank emerged as the top losers in the index.

The Nifty pack finished at 11,234.55, down 79 points, or 0.70 percent. Among 50 stocks in the index, only 15 could log gains.

Among secondary barometers, BSE Midcap closed 0.87 percent down and BSE Smallcap ended 0.57 percent lower.

BSE Bankex, Finance and Realty fell over 2 percent but Telecom and Energy bucked the trend which rose 3.76 percent and 1.69 percent, respectively.

As many as 265 stocks, including Arvind, Aurobindo Pharma, DHFL, MMTC, Indiabulls Housing Finance, Indian Bank, JSW Energy and Punjab National Bank, hit 52-week lows on BSE.

Top news of the day:

Moody’s Investors Service on October 10 slashed its 2019-20 GDP growth forecast for India to 5.8 percent from 6.2 percent earlier, saying the economy was experiencing a pronounced slowdown which is partly related to long-lasting factors.

Finance Minister Nirmala Sitharaman today said the government is giving sector-specific solutions to fight the slowdown in economic growth.

Nirmala Sitharaman said in a briefing today that the Reserve Bank of India (RBI) is taking action on the matter related to PMC Bank crisis.

Stocks in news:

Shares of Lakshmi Vilas Bank remained locked at 5 percent lower circuit at Rs 25.65, while Indiabulls Housing Finance plunged 19 percent to Rs 195 on BSE on October 10 after Reserve Bank of India (RBI) rejected their merger.

Share of IndusInd Bank fell 6.15 percent to Rs 1,228.95 after the company posted 3.4 percent sequential decline in the September quarter profit.

Shares of Vodafone Idea surged 5.82 percent to Rs 6.18 while those of Bharti Airtel jumped 5.05 percent to Rs 377.40 after Reliance Jio decided it will be charging an Interconnect Usage Charge (IUC) from customers for calls made to the other networks. Brokerages said if this move is replicated by incumbents, it will boost their EBITDA.

Shares of Goa Carbon remained locked in 5 percent lower circuit at Rs 229.40, a day after the company reported poor numbers for the September quarter.

Yes Bank shares declined for the second consecutive day, ending at Rs 40.95 with a loss of 5.21 percent. The bank has appointed Anita Pai as its chief operating officer and Jasneet Bachal as its chief marketing officer.

Global update:

European shares inched down in early trade on Thursday, hit by a batch of bad news for healthcare companies and a series of new twists in the US-China trade war ahead of top-level negotiations starting later in the day, reported Reuters.

Among Asian peers, China’s Shanghai Composite Index closed 0.78 percent higher but Korea’s Kospi settled with a loss of 0.88 percent. Japan’s Nikkei closed with a gain of 0.45 percent.

Technical view on the market:

“Nifty formed a bearish candle on the daily chart. It seems we may see some consolidation going forward in the narrow range of 11,070-11,400. Strength will come if the index manages to breach 11,400 level decisively,” said Rohit Singre, Senior Technical Analyst at LKP Securities.The Great Diwali Discount!
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