Sensex sheds 456pts, Nifty gives up 18,300; Airtel, SBI buck the trend

Topics MARKET LIVE | Markets | Q2 results

Closing Bell:

The markets ended Wednesday's trading session with notable losses on account of profit-taking in metals, energy, capital goods and consumer-related stocks like FMCG, durables and discretionary goods & services. Midcap and Smallcap stocks bore the brunt of the selling pressure during the course of the day.

The BSE benchmark index touched a high of 61,880 in morning trades, but soon reversed course and remained in the negative zone for the major part of the trading day. The Sensex dropped to a low of 61,109, and evenutally ended 456 points lower at 61,260.

The NSE Nifty touched a high of 18,458, and a low of 18,209, and finally settled with a loss of 152 points at 18,267.

Bharti Airtel was the major gainer among the Sensex 30 stocks, the stock surged 4 per cent to Rs 709. SBI rallied to a fresh all-time high and ended 2.5 per cent higher at Rs 500.

On the negative side, Titan dropped 3 per cent to Rs 2,483, and Hindustan Unilever shed 2.5 per cent at Rs 2,483. Bajaj Finserv, NTPC, PowerGrid Corporation and Larsen & Toubro declined 2 per cent each.

In the broader markets, the BSE Midcap index shed 1.9 per cent at 25,915, and the Smallcap index tumbled 2.3 per cent to 28,879. The overall breath too was fairly negative, with 2,297 declining stocks as against 1,004 advancing shares on the BSE.

Among sectors, the BSE Consumer Durables index plunged 3.3 per cent. The Basic Materials, Utilities and Metal indices dropped 2.3-2.5 per cent each. The Power and Realty indices were down around 2 per cent each, while the FMCG and Industrials declined 1.5 per cent. The BSE Telecom index, however, gained 3 per cent at 1,797.

Given the sharp fall in the broader markets, analysts advise retail investors to remain cautious. "We suggest retail investors be cautious and avoid buying on dips kind of strategies, as we are seeing selling pressure in the broader market.", said Yash Gupta, Equity Research Analyst at Angel One.

In the broader markets, IRCTC ended with a loss of 17.3 per cent at Rs 4,433. The stock has slumped nearly 31 per cent from its Tuesday's record high of Rs 6,393 in just matter of two trading sessions.

Mastek plunged over 14 per cent to Rs 2,931 after the company reported muted set of July-September quarter (Q2FY22) numbers. In Q2FY22, the company's dollar revenue increased 2.6 per cent quarter on quarter (QoQ) to $72 million (up 3.9 per cent in constant currency (CC)) while rupee revenue increased 3.4 per cent QoQ at Rs 533 crore. Net profit during the quarter also remained flat at Rs 81.5 crore as against Rs 80.2 crore in June quarter of the same fiscal.

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Markets at 2:30 PM

LIVE market updates: Benchmark indices extended their decline and were trading near day's low amid heavy selling in consumption-related, realty, and metal stocks.

At 2:25 PM, the frontline S&P BSE Sensex was at 61,140 level, down 577 points or 0.96 per cent, while the broader Nifty50 was hovering around 18,200 mark, declining 200 points.

The selloff was far more significant in the broader market space where the BSE SmallCap index tumbled nearly 3 per cent and the BSE MidCap index dropped over 2.5 per cent.

Sectorally, the Nifty Consumer Durables and Realty indices were down 3 per cent each. Among individual stocks, shares of Jubilant FoodWorks plunged 9.5 per cent on the BSE after the company's same-store-sales growth came in at 26.3 per cent for the July-Sept quarter as against Street expectations of over 30 per cent. Overall, its profit came in at Rs 121.5 crore and revenue at Rs 1,100.7 crore.

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Markets at Lunch (01:30 PM):

LIVE market updates: The markets continue to trade on a wobbly note with Smallcaps and Midcaps bearing the brunt of the selling pressure. Among sectors too, barring telecom, all other indices are in the negative zone.

The BSE Sensex touched a low of 61,325, and was down 300 points at 61,416. The NSE Nifty was down 119 points at 18,300.

Shares of fast moving consumer goods (FMCG) companies were under pressure for the second straight day on Wednesday, falling nearly 5 per cent during the period, on concerns of slowing sales in the rural market. READ MORE

Meanwhile, the European markets have started the trading day on a quiet note. The DAX 30 was up 0.2 per cent, while the FTSE 100 and CAC 40 were almost unmoved.

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Markets at 12 NOON:

LIVE market updates: The markets were trading near the day's low on the back of fresh round of selling in select index heavyweights like Hindustan Unilever, HDFC and ITC.

The BSE Sensex was down 226 points at 61,489, and the NSE Nifty was down 79 points at 18,340.

The broader markets continue to trade with deeper cuts. The BSE Midcap and the Smallcap indices were down 1.2 per cent and 1.6 per cent, respectively. The overall breadth too was fairly negative, with 2,164 declining stocks versus 961 advancing shares on the BSE.

Asian markets barring Hang Seng largely were flat in trade today. Hang Seng gained 1.3 per cent. The S&P/ASX 200 was up 0.5 per cent, while the Nikkei added 0.2 per cent. On the other hand, Kospi declined 0.5 per cent, while Twain Weighted and Shanghai Composite were down 0.1 per cent each.

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Markets at 11 AM:

LIVE market updates: The key benchmark indices are swinging between zones owing to mixed trend in the broader markets. At 11 AM, the Sensex was down 54 points at 61,662, and the NSE Nifty 50 was down 30 points at 18,389.

Bharti Airtel, SBI and ICICI Bank were the major contributors to the BSE Sensex accounting for a gain of near 160-odd points, while HDFC Bank, Reliance Industries and HDFC were the major draggers, accounting for a loss of 130-odd points.

The BSE Telecom index soared 3.3 per cent and was the sole gainer among sectoral indices on the exchange. On the flip side, the Consumer Durables was down 1.8 per cent, and the Metal index had shed 1.5 per cent.  

Bata India rallied to a record high on gaining 4 per cent on the back stake by institutions on hopes of businesss revival. Domestic investors have hiked stake in the company by 243 basis points (bps) to 17.88 per cent, while foreign shareholding increased marginally to 5.35 per cent at the end of June 2021 quarter. READ MORE

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Markets at 10 AM:

LIVE market updates: After the early morning volatility, the key benchmark indices recouped losses and were trading higher on the back of a strong buying in FMCG and telecom shares.

The BSE Sensex, which touched a low of 61,490, was up 138 points at 61,853.5. The NSE Nifty was up 33 points at 18,452.

Bharti Airtel has surged over 4 per cent to Rs 709 while Vodafone Idea was up 5 per cent. Nestle India, HCL Technologies and SBI were the other major gainers on the Sensex.

Meanwhile, the broader markets were trading with comparatively deeper cuts in trade on Wednesday. The BSE Midcap index had slipped 0.7 per cent, while the Smallcap index has shed 0.64 per cent.

"There is excessive speculation in certain stocks, particularly in the broader market, which have taken some stocks to unjustifiable levels of valuations. PEs in some cases are 100, 150 and even above 200. The high level of speculative froth in many stocks is evident from the abnormal trading volumes and huge volatility in these stocks," says Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Massive selling (Rs 2,578 crore yesterday) by DIIs indicates that smart money regards markets as overvalued and overheated. The market direction will depend on whether the exuberant retail investors will again rush in to absorb the selling by institutions, he addded.

Among stocks, IRCTC has extended its fall, and was down nearly 18 per cent at Rs 4,410 on the BSE. The stock has shed over 31 per cent (nearly Rs 2,000) in just two trading sessions.

Mastek had tumbled 15 per cent to Rs 2,903 on the BSE in intra-day trade after the company reported muted set of July-September quarter (Q2FY22) numbers. With today's decline, the stock has corrected 21 per cent from its 52-week high level of Rs 3,666, touched in Tuesday's intra-day trade. READ MORE

In the currency market, the rupee opened higher at 75.11 per US dollar relative to Monday's close of 75.34 per $. Currency markets were shut on Tuesday on account of Id-E-Milad.

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(Updated at 09:25 AM)

Opening Trades

LIVE market updates:
The benchmark indices opened a quiet note amid positive global cues. The BSE Sensex opened 84 points higher at 61,800, and after touching a high of 61,873, the index soon slipped into the negative zone.

The BSE Sensex was down 164 points at 61,553. The NSE Nifty touched a high of 18,458, but was down 64 points at 18,355.

Among the Sensex 30 stocks, Tata Steel has slipped 1.5 per cent. Asian Paints, Bajaj Finserv, Bajaj Auto, IndusInd Bank and NTPC are the prominent losers.

On the other hand, Nestle India, Larsen & Toubro, HCL Technologies, Infosys and Bajaj Fiannce were up marginally.

In the broader market, IRCTC has hit the 10 per cent lower circuit at Rs 4,830. The stock had crossed the Rs 1 trillion mark yesterday in intraday deals, after it hit a fresh all-time high at Rs 6,393. Mastek and Indian Energy Exchange (IEX) have also tumbled over 10 per cent each.

Elsewhere in Asia, Hang Seng has rallied 1.5 per cent. Australia's S&P/ASX 200 has advanced 0.7 per cent. Most of the other major markets like the Nikkei, Shanghai Composite, Taiwan Weighted, KOSPI and Straits Times traded on a flat note.

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(Updated at 09:08 AM)

Pre-open Session:

LIVE market updates:
The BSE Sensex was quoted 84 points higher at 61,800 in pre-open trades on Wednesday. The NSE Nifty 50 was up 20 points at 18,439.

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(Updated at 08:10 AM)

LIVE market updates:
A firm global market setup could resume uptrend in the markets after a day's blip. At 8.10 AM, SGX Nifty was up 20 points at 18,447.

Apart from global cues, corporate earnings, stock-specific news, FII flows and oil price movement will continue to influence market trajectory.

Earnings today

Jubilant FoodWorks, Havells India, L&T Finance Holdings, Angel Broking, Just Dial, Shoppers Stop, Snowman Logistics, Tata Communications and Tejas Networks are among the 33 firms slated to release their September quarter earnings today.

Global cues
US equities extended a rally in the overnight session as solid corporate results helped counter concerns stemming from elevated inflation. The Dow Jones Industrial Average rose 0.56 per cent, the S&P 500 gained 0.74 per cent and the Nasdaq Composite added 0.71 per cent.

Consequently, Asian markets followed their US counterparts higher, with Japan’s Topix index rising 0.5 per cent, Australia’s S&P/ASX 200 Index 0.9 per cent and Hang Seng Index 0.7 per cent. Shares in China, however, declined as the focus remains on Beijing’s regulatory curbs and the slowdown in the property sector.



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