Podcast | Sensex loses steam after hitting record, Nifty at all-time closing high
After days of positive moves, investors on Tuesday took a breather and ended around flat lines. The Sensex managed to end below 37,700. Meanwhile, the Nifty too slipped off its opening highs, but managed to end at an all-time closing high.
The drag on indices was largely led by banks, which witnessed a profit booking after it saw a big rally on Monday. So, even better than expected results from an index heavyweight such as Punjab National Bank could not salvage the banks from falling on Tuesday.
Along with it, there was weakness among other sectors such as FMCG, energy and infra. Among broader markets, the Nifty Midcap index managed to end the day over quarter of a percent lower.
“Equity benchmarks indices traded in a narrow range, amidst intraday volatility. The Nifty index ended flat to close at 11,391 levels. The broader market indices’ performance was largely in line with the benchmark with BSE Midcap and BSE Smallcap ending with minor losses of 0.2% each,” Jayant Manglik, President, Religare Broking, said in a statement.
The Sensex was down 26.09 points or 0.07% at 37665.80, while the Nifty was up 2.40 points or 0.02% at 11389.50. The market breadth is narrow as 1,243 shares advanced, against a decline of 1,448 shares, while 163 shares were unchanged.
Tata Steel, Asian Paints, and Titan Company gained the most, while Adani Ports and Coal India were the top losers.
Stocks in news:
Punjab National Bank (PNB) reported a lower-than-expected net loss of Rs 940 crore for the quarter-ended June. The loss was contained on the back of healthy interest income and fall in bad loans. This is the scam-hit lender’s second consecutive loss as for the quarter-ended March 2018, it had posted a massive loss of Rs 13,417 crore. The stock slipped 8% to close at Rs 82.95.
Adani Ports and Special Economic Zone slipped 6 percent as company’s June quarter (Q1FY19) net profit fell 9.1 percent to Rs 697.4 crore. Revenue declined 12.2 percent to Rs 2,411 crore versus Rs 2,745.1 crore. The other group company Adani Power fell 10 percent as investors turned cautious of its financials on the back of poor Q1 results.
Adani Transmission Q1 has doubled its profit in the quarter ended June 2018. The stock closed 2.6% higher at Rs 175.65.
Shares of Intellect Design Arena added 14.6% as the company signed multi-million dollar deal with an Asian Bank. The company has signed a significant multimillion dollar deal with leading bank in Asia market with a strong foothold in Singapore, Malaysia, Indonesia, Thailand and China to implement world’s first Integrated Trade Finance and Supply Chain Finance (SCF) platform.
Shares of Merck rose 17 percent as the company posted 140 percent jump in its June quarter net profit at Rs 48.3 crore on the back of robust operating income.
Auto components manufacturer Motherson Sumi Systems has reported a healthy 57 percent year-on-year growth in consolidated profit to Rs 482 crore, driven by growth across segments. The stock closed 3% lower.
Majority of Asian stocks rose as investors looked to shrug off concerns on trade war between US and China. Nikkei 225 added 0.69 percent, or 155.42 points, to close at 22,662.74.
Meanwhile, European markets were trading higher as traders digested fresh set of corporate earnings that were being reported for the June quarter. , as investors monitored simmering global trade tensions and the latest batch of corporate earnings.
The pan-European Stoxx 600 edged up around 0.3 percent during early morning deals, with most sectors and major bourses in positive territory.
Going forward, Manglik of Religare expects some consolidation as well. “With headline index trading at record highs, some consolidation cannot be ruled out. We expect stock specific volatility to continue with more corporate earnings scheduled in the next 1-2 weeks,” his statement further added.