Sensex dips 261 points, Nifty ends at 10,710; Vedanta, Adani Ports top losers
ICICI Securities Market Outlook
Muted returns for Nifty50 undermine the sharp fall in mid and small cap space: Indian equites have delivered muted returns CYTD (Nifty50 +2.6%) while mid and small cap stocks have significantly underperformed (-11% and -17% CYTD). Despite the overall underperformance of equities, stocks with improved ‘earnings growth’ visibility have been hitting all time high on price and valuations.
In this environment, we turn our attention to companies that have underperformed significantly (>20% fall from CY18 highs), but have shown evidence of producing ‘sustainable earnings’ and stable outlook.
Target: Rs 90
Stoploss: Rs 85
- Buying with heavy volumes in last hour of trade
- Fresh buying interest seen in futures trade
ICICI Bank: The ICICI Bank announced that its CEO Chanda Kochhar would be on leave till completion of an external enquiry against her in the Videocon loan matter and named Sandeep Bakhshi as chief operating officer, who would be handling all the businesses.
Asian stocks skidded to a four-month low on Tuesday as U.S. President Donald Trump threatened new tariffs on Chinese goods in an escalating tit-for-tat trade war between the world`s two biggest economies that has rattled financial markets.
Trump warned on Monday that Washington would impose a 10 percent tariff on $200 billion of Chinese goods after Beijing`s decision to raise tariffs on $50 billion in U.S. goods, which was in retaliation for U.S. tariffs announced on Friday.
Sensex and Nifty ended lower on Monday as concerns about a global trade war turned investors cautious, with metals and information technology stocks coming under selling pressure. The Sensex fell 73.88 points to 35,548.26 and the Nifty slid 17.85 points to 10,799.85. In the broader market, the BSE Midcap and the BSE Smallcap indices underperformed to lose 0.2 per cent and 0.7 per cent, respectively.
"Market remained range-bound with a negative bias due to weak global cues amid concerns of US-China trade tensions. Mid and small caps under-performed while metal stocks slid the most due to concerns on rising supply and fall in price," Vinod Nair, Head of Research, Geojit Financial Services Ltd, said.