Sexsex loses 181 points on market woes
Mumbai, October 30
The benchmark BSE Sensex today feel for the fifth straight day, tumbling 181 points to end the day at 26,656.83 — a one-month low — after lacklustre results from L&T and ITC rekindled worries over the financial health of India Inc.
The Nifty also struggled to break free, which closed below the 8,100-mark weighed down by losses in heavyweights.
ITC figured in the list of worst performers as it sank over 4 per cent after its quarterly numbers failed to move investors. The FMCG major posted a marginal rise in standalone net profit at Rs 2,431.25 crore for the September quarter.
There was more pain as diversified group L&T fell 4.11 per cent as its second quarter net profit fell short of market expectations.
Thanks to a positive start by the November derivatives series, the 30-share Sensex jumped around 105 points in early trade. But soon after, selling pressure following weak earnings took a toll as the index settled lower by 181.31 points, or 0.68 per cent, at 26,656.83 — its weakest close since October 1.
Vedanta tumbled the most while M&M, BHEL, Bharti Airtel, and Tata Motors also lost ground.
The gainers included NTPC, ICICI Bank and Dr Reddy's.
The NSE Nifty closed below the 8,100-mark by falling 45.95 points, or 0.57 per cent, to 8,065.80 — also its lowest closing since October 1.
On a weekly basis, the Sensex lost 813.98 points, or 3.05 per cent, and the NSE Nifty plunged 229.70 points, or 2.84 per cent — their worst weekly performance in two months.
"Market was dragged down by subdued quarterly earnings by key corporates like capital goods major Larsen & Toubro and FMCG heavyweight ITC. Breakdown of commodity prices across the world, weak global cues and a weak rupee weighed on sentiment," said Gaurav Jain, Director, Hem Securities.
Sectorally, the BSE capital goods index was hit the hardest, down 2.65 per cent, followed by FMCG, realty, auto and metal.
Broader markets too came under pressure, with the BSE small-cap losing 0.78 per cent and mid-cap 0.13 per cent.
Meanwhile, foreign investors bought shares worth Rs 174.12 crore on Thursday, according to provisional data.
Earlier in the day, major Asian indices ended mixed amid concerns over US Fed's rate hike trajectory as it indicated raising rates at its policy-setting meeting due in December.
European stocks were trading a tad lower in their early trade, taking cues from Asia.
Markets took heart from the fact that with the latest closing, both indices have snapped two straight months of losses.
US stocks overnight ended slightly lower, succumbing to weaker-than-expected GDP and pending home sales data a day after the Federal Reserve signalled a distinct possibility of a December rate increase.
Pramit Brahmbhatt, Veracity Group CEO said: "During the day, Sensex and Nifty dropped over half a percent as investors preferred to stay away from market as disappointing results from ITC & L&T dented sentiment and forced it to trade low."As many as 18 stocks out of the 30-share Sensex pack ended lower.
Market breadth continued to remain negative as 1,615 stocks ended in the red, 998 closed in the green while 194 remained steady. The total turnover rose further to Rs 3,186.77 crore, from Rs 2,773.00 crore yesterday.
"As expected, the poor set of numbers during the second half of result season is impacting the market. It will lead to further consolidation in the earnings forecast for FY16E.
Hence, the important trigger now depends on Bihar election outcome," said Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services Ltd. — PTI
