Sensex pares gains to slip in red, Nifty ends below 11,000; Kotak Mahindra Bank falls most
The Sensex and Nifty opened higher on Thursday, tracking positive trend in Asian markets as upbeat Wall Street earnings supported global investor sentiment, while US Fed Chair Jerome Powell reiterating that the US economy is healthy also contributed to the gains
The Sensex and Nifty scuttled between gains and losses to end the session lower on Thursday even as global markets remained positive as upbeat Wall Street earnings supported global investor sentiment. US Fed Chair Jerome Powell reiterating that the US economy is healthy also contributed to the gains. The Sensex ended at 36,351.23, down 22 points, while the broader Nifty50 was ruling at 10,957, down 23 points.
On Wednesday, the Sensex and Nifty settled lower, paring gains from earlier in the session, after the opposition parties tabled a no-confidence motion against Prime Minister Narendra Modi-led BJP government. Speaker Sumitra Mahajan said she would announce the date for a debate on it in "2-3 days".
15) Market breadth remains negative: Market breadth, indicating the overall health of the market, turned sharply negative. On the BSE, 1,754 stocks declined, 827 stocks rallied, while 146 stocks remained unchanged.
14) Broader markets underperform: In the broader market, the BSE Midcap index and the BSE Smallcap index underperformed to lose 0.6 per cent and 1 per cent, respectively.
Bharti Airtel share price gained over 2 per cent on Thursday after the telecom major added a whopping 3.6 crore subscribers in May led largely by Telenor merger, while Reliance Jio remained a distant second by adding 93 lakh subscribers and Idea Cellular lost 25 lakh subscribers during the same months. Reacting to the data, Bharti Airtel rallied as much as 2.56 per cent to Rs 345.45 on the BSE. Idea Cellular dipped 2.5 per cent to Rs 48.75, while Reliance Industries, parent firm of Reliance Jio, gained marginally to Rs 1101.50 on the BSE.
Kotak Mahindra Bank share price plunged a whopping 5 per cent on Tuesday right after the Uday Kotak-owned bank posted a smaller-than-expected 12.3 per cent rise in net profit for the June quarter. The Q1 net profit came in at Rs 1,024.94 crore on account of higher provisions for treasury losses even as its bad loan ratio improved. Kotak Mahindra Bank's net profit stood at Rs 912.73 crore in the corresponding period of 2017-18. Reacting to the numbers, Kotak Mahindra Bank stock slipped as much as 4.8 per cent to Rs 1335 on the BSE. It rallied close to 30 per cent in the June quarter, outperforming the Nifty and the Nifty Private Bank index.
11) Midcap IT stocks under pressure: Shares of MindTree Ltd, Larsen & Toubro Infotech Ltd and Hexaware Technologies Ltd fell between 4.3 per cent and 11.5 per cent. “Mid-cap IT stocks are facing valuation correction as they were trading at very high valuations compared with their historical averages,” told Sudheer Guntupalli, a technology sector analyst, Ambit Capital to Reuters.
10) Sensex Heatmap
9) Five newsmakers of the day: Reliance Communications, Mindtree to Mahindra CIE, these five stocks are trending on Dalal Street
8) Global markets update: On Thursday, Asian indices were showing a mixed trend. Japan's Nikkei 225 was quoting in green, up by 0.15 per cent while Hang Seng was down by 0.08 per cent, South Korea's Kospi was also down 0.23 per cent. China's Shanghai Composite index was trading in red, down by 0.49 per cent. Overnight, Nasdaq closed in red, down marginally by 0.01 per cent while FTSE 100 was up by 0.65 per cent at the closing on Wednesday.
7) WATCH VIDEO: First trade live with Anil Singhvi
6) Market breadth negative: Market breadth, indicating the overall health of the market, turned sharply negative. On the BSE, 597 stocks declined, 492 stocks rallied, while 42 stocks remained unchanged.
5) Broader markets: In the broader market, the BSE Midcap index and the BSE Smallcap index underperformed to lose 0.9 per cent and 0.6 per cent, respectively.
Strong support zone on Nifty and BankNifty lies between 10,900-10,925 and 26,650-26,700 respectively. However, Anil Singhvi suggests traders to reduce their buying positions if Nifty and BankNifty closes below 10,925 and 26,650.
Jain Irrigation DVR (Buy)
Target: Rs 54
Stoploss: Rs 50
- The govt approved 83 small and 8 big irrigation projects
- The govt will spend Rs 13,000 crore in Maharashtra's drought zone
Reliance Communications: Debt-laden Indian telecoms company Reliance Communications (RCom) reported a narrower first-quarter loss of Rs 342 crore on Wednesday, citing lower expenses in terms of access charges and licensing fees. It was the company's seventh straight quarterly loss and compared with a loss of 12.21 billion rupees a year ago.
1) Markets on Wednesday: The Nifty slipped below its crucial 11,000 level. The 50-share index closed 0.25 per cent lower at 10,980.45, while the benchmark Sensex was down 0.4 per cent at 36,373.44. The Sensex touched a record-high of 36,747.87 in early trade.
Material stocks were the biggest drag on the indices with Nifty Metal index dropping 3.2 per cent. Tata Steel ended 5.3 per cent lower. It was the top loser on Sensex and Nifty. Consumer stocks also fell with Hindustan Unilever finishing 2.3 per cent lower.
"We expect markets to remain volatile in the near-term. On the global front, US-China trade war talks along with movement in crude oil prices would be keenly tracked by investors. The ongoing corporate earnings season will also result in stock specific volatility. Hence, we would advise traders to remain cautious and avoid risky leveraged positions," said Jayant Manglik, President, Religare Broking.