INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Snapping five-session rally, domestic equity market succumbed to profit-booking to end lower on Tuesday mainly on account of
losses in financial and auto stocks.
Global sentiment remained weak after International Monetary Fund (IMF) cut its global growth forecast
Asian and European peers traded with losses, which dented sentiment back home even as IMF said that India would lead global growth in
2019-20.
BSE Sensex slipped 137 points to 36,445 while NSE Nifty settled at 10,923, down 39 points.
HDFC duo, Mahindra Mahindra and Maruti
were among top Sensex drags
Whereas, Vedanta was worst index performer, falling 3.63 per cent
MM, Tata Steel, Bharti Airtel, Maruti and HCL Tech were among other stocks that lost ground.
Only nine stocks ended higher in 30-share pack,
The scrip jumped 5 per cent after pharma major issued a clarification that it has neither gave any loan nor guarantees to Suraksha Realty
The stock settled 4.54 per cent up at Rs 416.45 apiece on Tuesday.
Kotak Bank rallied for a second straight day on back of strong Q3 numbers
and upbeat brokerage view on stock
YES Bank remained unchanged by end of trade
Metal index was worst hit in sectoral space
It ended 2.31 per cent lower on fears of slowdown in China
Barring NMDC, all other constituents of metal pack witnessed losses.
Telecom, auto and finance too ended in red
Shares of Prabhat Dairy gained traction after stock reversed gains to fall 16 per cent
The stock after rising 20 per cent in opening session, soon gave up gains and settled 14.29 per cent lower after Maharashtra-based company
promoters are selling 98 per cent of total company revenues, but Prabhat Dairy shareholders will only benefit for 29 per cent of sale value
said Sameer Kalra, Equity Research Analyst and Founder at Target Investing.
BSE Midcap and smallcap indices too witnessed a tepid session,
falling 0.09 per cent and 0.49 per cent, respectively
FactorsGlobal sentiment weighsAsian, European shares and US equity futures also fell after IMF trimmed its global growth forecasts and a
survey showed increasing pessimism among business chiefs as rich and powerful gather at World Economic Forum in Davos, Switzerland.
Weakness
in rupee persistsAfter opening five paise higher in today's session, rupee resumed its fall in intraday trade and was trading at 71.40,
down 11 paise, against US dollar
The domestic unit slipped as much as 18 paise against greenback.
China slowdownChina confirmed its slowest growth rate in nearly 30 years,
which continued to weigh on global market mood
China's official economic growth came in at 6.6 percent in 2018.
Expert TakeThe market has mirrored downswing in global equities which was
impacted on concerns over global economic growth
Investors are worried over government's ability to meet fiscal target of 3.3% of GDP in FY19, further dragging sentiment
On other hand, volatility may continue in near term due to risk of populist measures in interim budget and lower tax collection- Vinod Nair,
Head of Research, Geojit Financial ServicesAmidst broad-based selling across sectors and weak global cues, benchmarks opened session in red
and continued sluggish trade till afternoon session
Broad-based selling was witnessed in market and all sectors barring Pharma were trading in negative territory
The midcap and smallcap indices continued to underperform its large peers
Crude prices saw a decline of more than 1.2% as it traded at $61.94
The market will keep a close eye on earnings and crude oil prices in coming sessions- Satish Kumar, Sr
Research Analyst, Choice Broking
