Sensex, Nifty Extend Decline to Two-Month Low
Image used for representational purposes only.
Image used for representational purposes only.(Photo: AP)

Sensex, Nifty Extend Decline to Two-Month Low

Indian equity benchmarks closed at a two-month low, led by declines in HDFC Twins and carmakers. The S&P BSE Sensex fell 1.44 percent to 38,337 and the NSE Nifty 50 declined nearly 1.53 percent to close at 11,419.25.

The broader market index represented by the NSE Nifty 500 Index fell as much as 1.60 percent. Markets witnessing a sharp correction is long overdue and not for any specific alarming reason, according to Saurabh Mukherjea, founder, Marcellus Investment Managers.

“We have had weak earnings growth in India for the best part of last six years now and therefore the market was unattractively valued for quite some time.”
Saurabh Mukherjea, Founder, Marcellus Investment Managers

The market breadth was tilted in favour of sellers.

Over 1,347 stocks declined while 425 stocks advanced. All sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Auto Index’s 3.31 percent fall.

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Opening Bell

Sensex dropped nearly 200 points in early trade on Friday amid heavy foreign fund outflow and weak domestic headwinds.

The 30-share index opened over 150 points tracking rally global equities, but surrendered all gains to trade 201.04 points or 0.52 per cent lower at 38,696.42 at 0955 hours. The index swung nearly 400 points in the first hour of the session.

Similarly, the broader Nifty was also quoting 66.75 points or 0.58 per cent down at 11,530.15.

In the previous session, the 30-share gauge closed at 38,897.46, down by 318.18 points or 0.81 per cent, and the Nifty cracked below the 11,600 mark, ending 90.60 points or 0.78 per cent lower at 11,596.90.

Also Read : Closing Bell: Sensex Dips 300 Points; Nifty Plunges Below 11,600

Market opened higher following rally in other Asian equities on reports of two senior US Federal Reserve officials hinting at aggressive rate cuts ahead of the 30-31 July policy meeting.

However, unabated foreign fund outflow, disappointing earnings and reports of slowing economic growth dented market sentiment here, traders said.

“Foreign funds are on a risk-off mode, while domestic mutual funds are providing marginal support in the market,” said Vinod Nair, Head of Research, Geojit Financial Services.

On a net basis, foreign institutional investors sold equities worth Rs 1,404.86 crore, while domestic institutional investors purchased shares to the tune of Rs 329.05 crore, provisional data available with stock exchanges showed Thursday.

Top losers in the Sensex pack included Yes Bank, M&M, Bajaj Finance, Tata Motors, ONGC and Maruti, falling up to 2.27 per cent.

On the other hand, Tata Steel, TCS, Vedanta, HUCL, PowerGrid, HCL Tech, HDFC Bank and Infosys gained up to 0.60 per cent.

Shares of index-heavyweight RIL were trading 0.34 per cent lower ahead of its quarterly results, scheduled to be announced later in the day.

Hindustan Zinc, Bandhan Bank, Dabur India, RBL Bank, Unitech, L&T Finance Holdings and L&T Technologies are also slated to report June quarter results on Friday.

Meanwhile, the Indian rupee appreciated 18 paise (intra-day) to 68.78 against the US dollar.

The global oil benchmark Brent crude futures were trading 1.92 per cent higher at 63.12 per barrel.

Elsewhere in Asia, Shanghai Composite Index, Hang Seng, Nikkei and Kospi were trading over 1 per cent higher in their respective early sessions.

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