Correction in global stocks amid political turmoil in Italy & Spain, and sharp fall in the rupee dented investors sentiment.
Bears were back in power at Dalal Street as benchmark indices snapped three-day winning streak on Tuesday with the Sensex losing more than 200 points, dragged by banking & financials stocks.
Correction in global stocks amid political turmoil in Italy & Spain, and sharp fall in the rupee dented investors sentiment.
The 30-share BSE Sensex has broken 35,000 levels, falling 216.24 points to 34,949.24 while the 50-share NSE Nifty failed to hold 10,700 levels hit during the day, shedding 55.40 points to close at 10,633.30.
It was a profit booking day for the market but investors closely monitor the movement of crude oil prices and rupee, experts said. Gradually the focus will shift from earnings to monsoon, they added.
“Going forward, on the domestic front, GDP data and RBI monetary policy meet would dictate future course of the market whereas global cues, crude oil prices and currency movement (USD/INR) would also be tracked by investors,” Jayant Manglik, President, Religare Broking said.
According to him, stock specific action is also likely to continue on the back of announcement of Q4FY18 results. Hence, he recommends traders to hedge their position.
The announcement of early arrival of monsoon by IMD is a big positive for Indian economy and markets, however the progress of monsoon would be actively tracked, Manglik said.
European stocks corrected sharply, falling 1.5 percent amid renewed fears of a euro zone break-up risk in Italy and political turmoil in Spain. Most Asian markets also closed lower as Hang Seng, Shanghai Composite, Kospi and Nikkei 225 fell 0.5-1 percent.
Oil prices were mixed amid likely increase in crude output. Brent crude futures were at $75.66 a barrel, up half a percent while US crude futures fell 1.44 percent to $66.90 a barrel.
Meanwhile, the rupee depreciated 45 paise to 67.87 against the US dollar on fresh demand for the greenback from importers and banks.
Back home, the broader markets slightly outperformed frontliners as the Nifty Midcap index falling 0.35 percent on weak breadth. About 953 shares declined against 783 advancing shares on the NSE.
Nifty PSU Bank was the major loser among sectoral indices, falling 3 percent while Nifty Bank lost 359 points. Nifty Financial Services, Pharma and Realty indices were down 1 percent each whereas IT and Auto gained half a percent each.
ICICI Bank, SBI, Bajaj Finserv, IndusInd Bank and Yes Bank were biggest losers with 2-3 percent loss. HDFC Bank (down 0.5 percent), HDFC (1 percent), Kotak Mahindra Bank (down 1 percent), ITC (0.45 percent) and Reliance Industries (0.32 percent) were also under pressure.
Aurobindo Pharma share price declined 4.2 percent after March quarter earnings missed analyst expectations.
Technology stocks outperformed the market on weaker rupee. HCL Technologies gained more than a percent while TCS, Infosys and Tech Mahindra rose 0.2-0.6 percent.
IOC (up 1.2 percent), HPCL (0.62 percent) and BPCL (0.8 percent) extended gains on stability in crude oil prices.
Mahindra & Mahindra was the biggest gainer among Nifty50 stocks, rising more than 2 percent after March quarter earnings beat analyst expectations.
BHEL also gained nearly 6 percent after profit more than doubled in March quarter YoY while Coal India declined a percent as profit in Q4 plunged more than 50 percent compared to year-ago.
Vista Pharmaceuticals share price was locked at 10 percent upper circuit after the company signed a non-disclosure agreement to acquire a complex ANDA for UROCARE.
Manpasand Beverages continued to be locked in 20 percent lower circuit for the second consecutive session on concerns over corporate developments. This fall was despite the company trying to allay fears around the controversy surrounding its auditor, Deloitte which resigned abruptly.
