Home Business Sensex drops 150 pts, Nifty slips below 10750; Avanti Feeds drops 4%

Sensex drops 150 pts, Nifty slips below 10750; Avanti Feeds drops 4%

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NEW DELHI: Domestic markets opened on a weak note on Friday tracking selloff in other Asian markets. There are concerns that global liquidity will take a hit as the ECB looks poised to signal winding down of its bond buying programme. US stocks ended lower in overnight trade and that too hurt the sentiment. A kick start of hike in interest rates in emerging markets added to the concern.

At 9.27 am, the BSE Sensex was trading 95.90 points, or 0.27 per cent, lower at 35,367.18. Nifty50 fell 41.55 points, or 0.39 per cent, to 10,726.80. Fear guage India VIX eased 6 per cent to 12.01. Midcap and smallcap indices restricted losses.

The weakness in the domestic market also has to do with earning downgrades. The cycle of earnings downgrades doesn’t seem to have ended yet, with May standing out for the ferocity with which analysts slashed growth estimates in the month. The projected earnings per share (EPS) for 2018 of the MSCI India Index — a dollar-denominated benchmark used by global fund managers to evaluate their investments in Mumbai stocks — has been trimmed by 2.6 per cent in May.

Sensex stock Power Grid fell 2.05 per cent to Rs 198.65.

ICICI Bank declined 1.24 per cent to Rs 287.35. The bank was looking to file a consent petition with markets regulator Sebi to end the ongoing investigation against its CEO and MD Chanda Kochhar in Videocon, ET Now reported quoting sources on Thursday.

Reliance Industries dropped 1.12 per cent to Rs 960.55. The company had sought shareholder approval to raise up to Rs 20,000 crore through a non-convertible debenture (NCD) issue in 2018-19. RIL said its oil and gas business continued to face headwinds due to declining volumes and shut D6 wells.

YES Bank, IndusInd Bank and Axis bank fell up to 1 per cent.

On the upside, drug maker Dr Reddy’s Labs rose 1.87 per cent to Rs 2,003 while Sun Pharma added 1.84 per cent to Rs 497.50.

Tata Motors gained 1.60 per cent to Rs 310.20. The auto maker’s arm Jaguar Land Rover (JLR) reported 6.1 per cent increase in global sales at 48,281 units in May, driven by introduction of new models including the Range Rover Velar across markets.

On the global front, Asian shares kicked off to a poor start as global risk appetite deteriorated on worries the European Central Bank was ready to start tapering its massive stimulus, although trade was expected to be cautious ahead of big diplomatic meetings, Reuters reported. The ECB will debate next week whether to end bond purchases later this year, the bank’s chief economist said on Wednesday.

Data suggests that foreign portfolio investors (FPIs) sold Rs 525.40 crore worth of domestic stocks on Thursday, provisional data available with BSE suggested. DIIs were net buyers to the tune of Rs 1,198 crore, data suggested.

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