The market extended losses for fifth consecutive session on Monday despite positive global cues, as the Sensex fell more than 200 points amid weak midcap companies’ earnings. Higher crude oil prices and weaker rupee also dented sentiment.
Private banking & financials barring ICICI Bank, auto, metals, pharma stocks and Reliance Industries pulled the market lower, but PSU banks outperformed all.
The 30-share BSE Sensex was down 232.17 points at 34,616.13 while the 50-share NSE Nifty managed to hold 10,500 levels despite shedding 79.70 points to close at 10,516.70.
The market is likely to remain volatile in near term due to higher crude oil prices and weaker rupee, experts said.
“We expect the Indian markets to remain range bound in the coming sessions. Further course of market would be dictated by global developments, crude oil price and currency movement in near term,” Jayant Manglik, President, Religare Broking said.
However, stock specific volatility would continue with on-going corporate earnings season, he feels. “We would advise investors to accumulate quality companies on dips.”
Global markets as well as crude oil prices remained higher on easing of US-China trade war concerns. Brent crude futures were up 0.22 percent at $78.68 a barrel at the time of writing this article. Brent crossed $80 for the first time since November 2014 last week.
France’s CAC and Britain’s FTSE were up 0.7 percent each while Asian markets like China’s Shanghai Composite and Hong Kong’s Hang Seng closed up more than 0.6 percent each.
Back home, the broader markets underperformed frontliners following dismal earnings, with the Nifty Midcap index declining 321 points on weak breadth. About four shares declined for every share rising on the NSE.
Nifty Bank, Auto, Pharma, Metal and Realty indices were down up to 3.3 percent.
Dr Reddy’s Labs declined 4.5 percent and Cipla dropped 2.4 percent ahead of March quarter earnings on Tuesday. Sun Pharma also lost 4.5 percent.
PSU banks were major gainers on reduction in bad loans after Tata Steel acquired debt-laden Bhushan Steel. The PSU Bank index was up 2.66 percent as Bank of India, PNB, Union Bank, Canara Bank, IDBI Bank, SBI, Indian Bank and Bank of Baroda gained 2-4 percent.
HDFC, HDFC Bank, Yes Bank, Bajaj Finance, Tata Motors, Titan Company, Vedanta, HUL and Eicher Motors slipped up to 3 percent while TCS, ICICI Bank, IOC, BPCL, Bharti Infratel, GAIL and Coal India gained 1-2 percent.
FMCG firm Colgate Palmolive declined over a percent on lower-than-expected Q4 volume growth and fall in toothpaste market share while kitchen appliances maker TTK Prestige dropped 5 percent after the company reported 32 percent decline in profit.
CCL Products dropped 5.5 percent despite 33 percent YoY growth in profit while Indian Metals plunged 15 percent after profit in Q4 dropped 97 percent YoY.
DB Corp was up 6 percent as the board will consider share buyback on May 26.
Jet Airways, Just Dial, BEML, REC, Adani Power, LIC Housing Finance, Glenmark Pharma, Ashok Leyland, Amara Raja Batteries, Kitex Garments and Strides Shasun fell up to 20 percent.
Avenue Supermarts lost 5 percent for the second consecutive session after promoter Radhakishan Damani decided to sell up to 1 percent stake in open market.
IndoStar Capital Finance saw decent gains in first trading session despite weak market conditions, closing up 2.3 percent at Rs 585.