Sensex Ends 54 Points Lower On Weakness In IT, Capital Goods Stocks

The Sensex fell over 50 points while Nifty settled below its crucial psychological level of 8,600 for second day tracking weakness in IT, capital goods and banking shares.

The Sensex declined 54 points to close at 27,782 and Nifty slipped 20 points to shut shop at 8,573.

For the most part of the day, stock markets reeled under selling pressure wherein Sensex fell as much as 139 points and Nifty hit a low of 8,548. However, late buying in heavyweights like Tata Motors, Reliance Industries and HDFC helped benchmark indices recover most of the lost round.

Meanwhile, investors stayed on the sidelines ahead of a speech by US Federal Reserve Chair Janet Yellen in Jackson Hole, Wyoming later in the day.

Investors are wary Yellen will hint at a near-term interest rate hike, which could divert some of the massive liquidity that has underpinned emerging markets, after hawkish comments from a slew of other Fed officials recently.

Caution ahead of Yellen's speech has hit both global and Indian shares this week.

Tata Motors DVR and Tata Motors were among the top Nifty gainers after the company reported that its revenues in June quarter rose 9 per cent to Rs 67,056 crore compared with Rs 61,510 crore during the ame quarter last year.

Reliance Industries, Asian Paints, GAIL India, Eicher Motors, Hindalco and M&M were also among the gainers.

On the other hand, Wipro, HCL Technologies, Bank of Baroda, Larsen & Toubro, Idea Cellular, Infosys, State Bank of India, Sun Pharma and Yes Bank were among the laggards.

The broader markets ended on a mixed note with Mid-Cap index closing 0.17 per cent higher while Small-Cap index declining 0.12 per cent.

3:21 p.m.: Stock markets recover most of the lost ground in last hour of trade on the back of buying in index heavyweights like Tata Motors, Reliance Industries and HDFC. Sensex down 21 points at 27,814 and Nifty trades 9 points lower at 8,583.

3:20 p.m.: Tata Motors reports net profit of Rs 2,236 crore on sales of Rs 66,101 crore in June quarter compared with net profit of Rs 5,231 crore on sales of Rs 60,094 crore during the same quarter last year.

2:48 p.m.: Wipro was the top Nifty loser, down 3 per cent to Rs 488.75. HCL Technologies, Bank of Baroda, Larsen & Toubro, Adani Ports and SEZ, BHEL and Infosys were also among the losers.

2:40 p.m.: Real estate stocks witness selling pressure. The BSE Realty index declines 1.2 per cent; HDIL, Indiabulls Real Estate, Unitech, DLF, Prestige Estates, Oberoi Realty and Phoenix Mills were among the laggards.

2:33 p.m.: Shares of Gammon Infrastructure Projects plunged nearly 5 per cent today as the company reported a flat standalone net profit at Rs 5.88 crore for the first quarter ended June 30.

The scrip declined by 4.31 per cent to Rs 5.10 on BSE. On NSE, it went down by 4.71 per cent to Rs 5.05. (Read)

2:26 p.m.: Overall market breadth remains negative as 1,550 stocks fall while 967 advance on the BSE.

2:13 p.m.: Infosys, Larsen & Toubro, ICICI Bank, TCS, State Bank of India, Wipro, Sun Pharma, Adani Ports and Asian Paints were among the top decliners.

1:59 p.m.: Sensex continues to trade with a negative bias, down 86 points and Nifty slips 26 points to 8,566.

1:47 p.m.: Banking stocks moved lower today while stocks of select non-banking financial company (NBFCs) gained after the Reserve Bank yesterday announced measures to deepen the corporate bond market in the country. 

RBI said on Thursday it would enable banks to pledge corporate bonds as collateral when borrowing funds from its overnight repo window. The central bank also said that it would amend its regulations shortly to allow foreign investors to transact in corporate bonds directly. (Read)

12:26 p.m.: Capital goods stocks were witnessing selling pressure. The BSE Capital Goods index was down 1 per cent; Larsen & Toubro, Alstom T&D, Thermax, Texmaco, Sadbhav Engineering, VA Tech Wabag, ABB, BHEL and Suzlon Energy were among the losers.

12:05 p.m.: Nifty 8,600 strike price put option is the most active options contract on the National Stock Exchange, as many as 6.3 lakh shares have been added to the open interest of 3.3 million shares. The premium on the contract jumped 9 per cent to Rs 117.30.

11:40 a.m.: From the Nifty basket of shares, 23 were advancing while 28 were declining. Bharti Infratel was the top gainer, up 2.78 per cent to Rs 349. GAIL India, Tata Motors, Cipla, Hindalco, Reliance Industries and Tech Mahindra were also among the gainers.

11:32 a.m.: PSU banking shares were also witnessing selling pressure. IDBI Bank was the top loser from this space, down 5 per cent to Rs 71.50. Punjab National Bank, Syndicate Bank, Oriental Bank of Commerce, Bank of Baroda, Andhra Bank, State Bank of India and Allahabad Bank were also among the losers, down 1-1.75 per cent each.

11:26 a.m.: Broader markets in-line with the benchmark indices. The BSE Mid-Cap index slips 0.06 per cent and Small-Cap index declines 0.01 per cent. Piramal Enterprises was the top loser from this space, down 4 per cent to Rs 1,880. JP Associates, IDBI Bank, Jindal Steel, Adani Power, Oriental Bank of Commerce, Yes Bank and JSW Energy were also among the losers.

11:21 a.m.: According to Imtiyaz Qureshi, co-founder & director of Investeria Financial Services, markets can correct further if the Nifty slips below 8,580. Investors should go short on Nifty if it breaks 8,580 with stop loss at 8,640 for target of 8,518-8,480, he added. (Read)

11:12 a.m.: Banking stocks witness selling pressure. The Nifty Bank index falls 0.6 per cent and the PSU Bank Nifty declines 1.22 per cent. Punjab National Bank was the top loser from the banking space, down 2 per cent to Rs 123. IndusInd Bank, Yes Bank, Bank of Baroda, Federal Bank, State Bank of India and ICICI Bank were also among the laggards.

11:08 a.m.: Sensex edges lower, slips 8 points to 27,827 and Nifty declines 4 points to 8,587.

11:00 a.m.: Welspun India shares made a comeback on Friday, following the nearly 50 per cent crash in the textiles manufacturer in previous four trading sessions. The stock jumped 6 per cent today, though analysts warned that the rally could get sold into like yesterday.

10:25 a.m. Stock update: J Kumar Infraprojects surges 5% after its joint venture bags Rs 5,000 crore project from Mumbai Metro

10:15 a.m.: Markets slip into negative territory: Sensex down 25 points on emergence of selling pressure in banking stocks.

10:10 a.m.: Muthoot Finance, Manappuram Finance and LIC Housing Finance up between 2-4 per cent.

10:05 a.m.: Prateek Agarwal of ASK Investment Manager says banks profitability and credit growth could be hit due to new bond market rules.However, the guidelines would be positive for NBFCs, he adds, as it would bring down their cost of funds. 

9:45 a.m.: Market view - TS Anantakrishnan of Varanium Capital Advisors does not see much upside from current levels. Nifty risks falling to 8200-8300 levels, volatility to increase ahead of US elections, he says. 

9:40 a.m.: Tata Motors has strong resistance at Rs 520 levels and at current levels, the Q1 earnings have been discounted: Sanjiv Bhasin of IIFL

9:35 a.m.: Biocon and Cipla among top picks in pharma space, says Sanjiv Bhasin of IIFL. He expects Rs 1,100 levels in Biocon in 6-9 months.

9:30 a.m.: Tata Motors rises 2 per cent ahead of Q1 earnings announcement. 

9:26 a.m.: Sensex up around 80 points while Nifty trade above 8,600. Cautiousness prevailed ahead of a keenly anticipated speech by Federal Reserve Chair Janet Yellen.

The Nifty remained above 8,600 but caution prevailed ahead of a keenly anticipated speech by Federal Reserve Chair Janet Yellen.

The Nifty remained above 8,600 but caution prevailed ahead of a keenly anticipated speech by Federal Reserve Chair Janet Yellen.

The BSE Sensex and the broader Nifty50 are likely to open on a positive note, according to Nifty futures trading on Singapore Exchange (SGX). As of 08.20 a.m., the SGX Nifty were trading 18.50 points or 0.21 per cent higher at 8,660, indicating a higher start for domestic stock markets.

Foreign institutional investors sold cash shares worth Rs 372 crore yesterday, while domestic institutional investors sold shares worth Rs 357 crore. The net selling by investors sent the Nifty below 8,600, while the Sensex dropped most in two weeks.

However, foreign brokerages continue to retain their positive outlook on domestic equities. CLSA's Chris Wood said that India is the most promising stock market from a five-year view. He expects inflows to continue into domestic mutual funds market.
 
Meanwhile, traders expect the Sensex and Nifty to consolidate around current levels in the absence of major local or global cues.

"It seems that market is no hurry for next directional move and it may spend few days more around current level. Needless to say, lower band of prevailing consolidation range i.e. 8500 would act as cushion in Nifty ahead. No major domestic event is lined up in near future so traders should closely watch the developments on global front for further cues," said Jayant Manglik of Religare Securities.

Among stocks, Tata Motors will be closely tracked ahead of its June quarter earnings announcement today. Brokers polled by NDTV Profit expect Tata Motors to post a net profit of Rs 2,548 crore on sales of Rs 65,111 crore.

Biocon shares are likely to gain as the European drug regulator is set to review the company's breast cancer drug filing. The review is first step towards commercial sale.

Asian markets traded mixed today, with Japan's Nikkei and South Korea's Kospi indices edging lower, while Hong Kong's Hang Seng and Chinese markets edging higher.

Investors are likely to be cautious ahead of a speech by Federal Reserve Chair Janet Yellen at the annual gathering of central bankers in Jackson Hole, Wyoming, today. US stocks were modestly lower on Thursday, weighed down by a drop in healthcare and consumer companies.

(With inputs from agencies)