The markets have spiralled down this morning, with both the Sensex and Nifty touching their lowest in almost four months, amid geo-political concerns in the Middle-East with index heavyweights leading the decline.
At 10.30am, the BSE Sensex had plunged over 500 points to break below its crucial psychological level of 27,000 and the Nifty has also came under pressure to break below its crucial support 200-DMA. The Sensex was at 26,897, lower by 542 points and the Nifty is at 8,151, dowen 168 points.
The broader markets were also having a rough ride, with the BSE midcap and small cap index shedding around 2% each at 10386 and 10943 respectively.
The benchmark indices had moved in a narrow range and closed flat on Tuesday, with the Nifty still managing to hold onto to its 200-DMA of around 8150. However, the markets are close to re-testing those levels this morning.
The market participants would be keeping an eye on the developments in Parliament, especially with regard to the GST bill. The rupee has opened higher at 63.34 a dollar, up 10 paise compared to previous day's closing value of 63.44 per dollar.
EXPERT VIEW
"In our view, even with the recent correction of ~8% (Nifty at 8,300) and forward multiple of 18x 1-year forward the market is still exuberant. The exhilarated expectations from change of guard at the center seem to be wearing as earnings growth rebound has failed to materialise," said Dhananjay Sinha, head of institutional research at Emkay Global Financial Services in a note.
"Index correction can be led by sectors that have reached rich valuations, notwithstanding consistent rise in earnings and market weightage viz. Banking (private banks), Pharma and Autos. We look to pick up strong names on declines," he adds.
GLOBAL MARKETS
Asian stocks stumbled early Wednesday morning in sympathy with weak U.S, but have recovered from thereon and are trading mixed. The Hang Seng, Taiwan and Shanghai indices are trading in the green, while SET and Jakarta indices have edged lower.
The US markets had closed lower on Tuesday as investors eyed higher bond yields and an unexpectedly wide march u-s trade deficit. The Dow ended down by 0.79% and Nasdaq shed 1.5%.
SECTORS AND STOCKS
There is selling pressure across sectors. Banking, metal and oil stocks are doing the most damage this morning, and heavyweights such as BHEL, NTPC, Axis Bank and ONGC are the top losers on the BSE.
In the banking space, Axis Bank, Yes Bank, ICICI Bank and SBI have shed between 1% and 3% each.
In the oil space, oil marketing companies such as Indian Oil Corporation (IOC) Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) have fallen by upto 6% on the bourses as oil prices hit their highest for the year on Tuesday. Among the individual stocks, IOC has dipped nearly 6% to Rs 344, while BPCL down 5% to Rs 741 and HPCL 4% to Rs 604 on the BSE.
The metal space is seeing profit-booking after two successive days of gains. Jindal Steel, NMDC, Hindalco and Tata Steel have shed around 3% each.
On the other hand, Bharti Airtel is the sole BSE Sensex gainer, jumping over 3% to Rs 398 on the BSE in an otherwise subdued market on the buzz that Morgan Stanley Capital International (MSCI) Global Standard Indexes increased the weightage of the company in the MSCI India Index to 2.6% from 1.3%, effective June 1, 2015.
The market breath is weak. Out of 2050 stocks traded on the BSE, there are 382 advancing stocks as against 1609 declines.
No comments:
Post a Comment