The market
shattered on Tuesday with the benchmark indices falling 1.58 percent on weak Eurozone
data and launch of air strikes against ISIS in Syria by US military.
The 30-share BSE Sensex fell 431.05 points
(the biggest fall since July 8, 2014) to close below the 27000-mark at 26775.69
while the 50-share NSE Nifty managed to hold the 8000 level, down 128.75 points
at 8017.55. The broader markets too lost shine with the BSE Midcap and Smallcap
indices 2-2.5 percent.
The fall was amid huge market turnover of more
than Rs 6 lakh crore today. Experts believe the fall may extend a bit further
due to weak global cues but upcoming positive events may cap that downside.
The Indian
market may correct around 2-4 percent but there are plenty of positive triggers
in the near-term that must allow it to head in a positive terrain, believes
Mehraboon Irani of Nirmal Bang Securities.
According to Irani, Prime Minister Narendra
Modi’s US visit, divestment news, achieving fiscal deficit target and state
polls (Maharashtra and Haryana on October 15) will add optimism in the market
for at least next 2-4 months.
The only
issue that the Indian market may now face is inflation, which continues to
remain sticky and may restrict the RBI governor Raghuram Rajan from cutting
rates in the near future.
On the
global front, European markets fell 1-1.5 percent (at 16 hours IST) on poor
flash PMI data, weak US housing data and geopolitical tensions. The US and five
Arab allies have carried out the first strikes against Islamic state militants
in Syria. The Pentagon said warplanes, drones and tomahawk missiles were used
in the attacks, which targeted several ISIS held areas.
On the home turf, all sectoral indices ended
in red with the BSE Realty, Oil & Gas, PSU, Capital Goods, Metal and
Healthcare falling 2-5 percent. Bank, Auto and Power were down 1.5-1.9 percent.
However, FMCG and IT (so called defensives) outperformed, down 0.4 percent and
0.6 percent, respectively.
Realty
major DLF tanked nearly 7 percent after the Delhi government hiked circle rates
- the minimum valuation at which properties have to be registered - by up to 20
percent with an aim to check black money component in sale and purchase
transactions. The new rates will come into effect from today.
Cipla dropped 4.65 percent followed by Tata
Motors, Tata Steel and Hindalco Industries with 3-4 percent loss. Shares of
ICICI Bank, Reliance Industries, L&T, ONGC, Sun Pharma, Axis Bank and
Bharti Airtel dropped 2-3 percent.
Utility vehicle maker Mahindra and Mahindra
slipped 2 percent after Credit Suisse downgraded the stock to neutral, citing
unattractive valuations. The brokerage cut its earnings estimates by 5 percent,
but raised target price to Rs 1,470 as the value of subsidiaries has gone up in
line with the rest of the market.
Shares of
TCS, Infosys, HDFC and HDFC Bank declined around a percent. However, ITC, Hindustan
Unilever, NTPC and Wipro bucked the trend, up marginally.
In the
broader space, Suzlon Energy, Delta Corp, India Cements (despite the news of
demerger of Chennai Super Kings division), Anant Raj, Andhra Bank and Snowman
Logistics were down 5-10 percent. However, HCC and Indiabulls Power gained over
3 percent.
PSU banks like OBC, Andhra Bank, Allahabad
Bank, Canara Bank, Union Bank, Bank of India, IDBI Bank, Syndicate Bank, Bank
of Baroda and IOB tumbled 2.5-6 percent.
Sharda Cropchem saw a strong debut today, up
48.37 percent to close at Rs 231.45 compared to issue price of Rs 156. It
touched an intraday high of Rs 273.85 and low of Rs 225 after opening at Rs
254.10.
Decliners
beat advancers on the Bombay Stock Exchange by a ratio of 2129 to 890 while about
four shares declined for every advancing on the National Stock Exchange. More
information please visit this Site www.bigprofitbuzz.com
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