Sensex sheds 218 points, Nifty slips below 10,950 on negative global cues; Tata Steel dips 7%
Jayant Manglik, President, Religare Broking
Nifty started the week on feeble note and lost over half a percent. Initially, it opened flat but weak macroeconomic data viz. widening trade deficit and news of WPI inflation touching 4-year high dampened the sentiment. Weak global cues deteriorated the conditions further and triggered selling across the board. Mostly sectoral indices traded under pressure wherein pharma, metal and realty lost maximum. Besides, sharp plunge was witnessed on broader front and both the broader market indices ended with deep cut.
Continuous decline on broader front has pushed the stocks in extreme oversold zone so we may see some pause or rebound prior to further slide. However, we advise to avoid catching falling knives and wait for clarity. Investors, on the other hand, should see this correction as opportunity and gradually start adding fundamentally sound stocks with long term view as they're now available at good bargain.
Infosys June quarter numbers may have come in below expectations, but the announcement of bonus issue perked up investor sentiment with the stock crossing Rs 3 lakh crore in market capitalisation for the first time ever as it hit a new high on Monday. Infosys share price rallied nearly 6 per cent to Rs 1384.40, its lifetime high level. Infosys share price had hit its previous high of Rs 1,358 on July 3, 2018 in intra-day trade.
PC Jeweller share price plunged over 22 per cent on Monday after the controversy-ridden jewellery firm withdrew its buyback offer worth Rs 424 it announced in May. Reacting to the news, the stock tanked as much as 22.17 per cent to Rs 93.35 on the BSE. PC Jeweller share price has fallen 79 per cent so far this year as it dealt with management and block deal issues. To assuage investor concerns and build some confidence in the stock, the management of PC Jeweller had announced the buy-back of up to 1,21,14,286 fully paid-up equity shares of Rs 10 each.
11,000 and 27,000 are going to be a deciding level on Nifty and BankNifty respectively. Small trade range on Nifty stands between 11,000-11,075 and the bigger range lies between 10,950-11,100. In the case of BankNifty, the trading range stands at 26,775-27,150.
Aurobindo Pharma (Buy)
Target: Rs 625
Stoploss: Rs 597
- The company to acquire Canadian pharma company Apotex International's commercial operations.
- The acquisition will take place in five European countries for €74 million in an all-cash deal.
Infosys: Infosys, country's second largest services firm, reported Q1FY19 results on Friday that remained below Street expectations. The IT giant reported Rs 3,613 crore consolidated net profit for the first quarter of fiscal 2018-19, registering a 3.7 per cent annual growth from Rs 3,483 crore in the same period year ago. Sequentially, however, net profit declined 2.1 per cent from Rs 3,690 crore a quarter ago.
Sensex ends flat after opening at record high, Nifty closes above 11,000; RIL, Infosys top gainer