Sensex tanks 300 points on negative global cues; Sun Pharma, Wipro shed 3% each
Jayant Manglik, President, Religare Broking
The bears continued to dominate, as the Indian equity benchmark indices fell for fourth straight session, led by weak domestic sentiments. The Nifty index fell by 86 points to close at 10,596 levels. Investors remained cautious on developments ahead of formation of government in Karnataka and US-China trade negotiations. Further, weak INR vs USD also impacted the sentiments. The broader market indices underperformed, with BSE Smallcap & Midcap closing down by 1.6% & 1.5% respectively. Barring FMCG, which ended with decent gains, all the other sectoral indices closed sharply in the red. Capital Goods, Metals, Healthcare, Auto, Oil & Gas & Power were the top losers, down 1.5-3%. Amongst the global indices, the Asian and European markets traded on a mixed note.
With lack of any fresh positive triggers globally and on the domestic bourses, we expect the markets to consolidate in the near term. However, the ongoing correction should be considered as good opportunity for long term investors to accumulate fundamentally sound stocks on dips. With more corporate earnings scheduled in the next week, stock specific volatility would continue to remain high. The behaviour of crude oil prices and movement of INR vs USD will be closely monitored in the coming sessions. Traders should strictly avoid overleveraged positions.
Markets fall for 4th straight day
The Sensex and Nifty declined for a fourth straight session on Friday, dragged by financials such as ICICI Bank and Housing Development Finance Corp. Investor sentiment was also subdued amid caution over developments in US-China trade negotiations and as crude prices broke above $80 a barrel for the first time since November 2014 on Thursday.
For the week, the benchmark indices logged their biggest weekly fall in eight.
Bharti Airtel share price slipped over 3 per cent, extending losses for the sixth straight session, after rival Reliance Jio last week unveiled a new post-paid Rs 199 plan at almost half the price of the going rate and with more data than those offered by Airtel, Idea or for that matter the non-listed telco Vodafone. Bharti Airtel stock has fallen 13.6 per cent in the last six trading sessions. By comparison, Sensex slipped just 0.6 per cent. The stock hit its 52-week low of Rs 355.10 on the BSE in today's session. Bharti Airtel has lost Rs 21,800 crore market capitalistion during the same period.
Rupee value against dollar
The rupee weakened by 17 paise to 67.87 against the US dollar in early trade at the interbank forex market today on fresh demand for the greenback from importers and banks. Crude oil's breach of the USD 80 per barrel-mark in global market and a lower opening of the domestic equity market too weighed on the investor sentiment
Nifty Outlook by Angel Broking
The index has now closed below its crucial short term support and hence, going ahead, a possibility of a further slide towards 10635 – 10600 cannot be ruled out. On the higher side, 10725 followed by 10774 would be seen as immediate hurdles. In between, we may some respite in the market; but overall the short term sentiments have dampened now. T
Supreme Court Hearing on Karnataka to start at 10:30 am
Supreme Court will resume hearing on Congress’ petition later today at 10:30 am. The apex court has directed that letters sent by BJP to Governor Vajubhai Vala for government formation be placed before it. BS Yeddyurappa took oath as Chief Minister of Karnataka on Thursday.
Asian markets edge up
Asian stocks edged up on Friday as investors kept a cautious watch on developments in U.S.-China trade negotiations, with the dollar perched near a five-month peak after the benchmark U.S. Treasury yield hit its highest in seven years.
MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.1 percent higher. The index was headed for a 1 percent loss this week.
Japan’s Nikkei rose 0.25 percent, South Korea’s KOSPI was up 0.4 percent and Australian stocks dipped 0.15 percent. Hong Kong’s Hang Seng rose 0.25 percent and Shanghai climbed 0.3 percent.
Wall Street on Thursday
Wall Street ended a choppy trading session lower on Thursday, as investors grappled with escalating trade tensions and rising oil prices. Comments by US President Donald Trump that China “has become very spoiled on trade,” cast doubt on his efforts to avoid a tariff war between the world’s two largest economies, increasing investor jitters at the outset of a second round of high-level negotiations.
The Dow Jones Industrial Average .DJI fell 54.95 points, or 0.22 percent, to 24,713.98, the S&P 500 .SPX lost 2.33 points, or 0.09 percent, to 2,720.13 and the Nasdaq Composite .IXIC dropped 15.82 points, or 0.21 percent, to 7,382.47.