An evening walk down Dalal Street | Nifty holds 10,900 even as global growth concerns weigh
Equities ended the day on a negative note, but off their low points as bulls put up a fight in the last hour. The Nifty managed to hold 10,900, while the Sensex closed a little over 100 points lower.
Some global cues too had their impact on the markets here. Concerns over global slowdown pushed global markets lower. The International Monetary Fund (IMF) cut global growth forecasts as well.
Back home, Counters were buzzing among index heavyweights as the likes of Vedanta, Tata Steel and Maruti Suzuki, Reliance Industries and HDFC twins dragged the market. Meanwhile, gains in names such as Sun Pharma and Kotak Mahindra Bank helped the market recover.
Among sectors, Nifty pharma was the sole gainer, while pain was visible among automobiles, banks, infrastructure, metals and IT. Metal stocks were under pressure as global growth concerns weighed on metal prices across the world.
The market breadth was negative as 948 shares advanced, against a decline of 1,583 shares, while 164 shares were unchanged.
Sun Pharma, Kotak Mahindra Bank, and Wipro were the top gainers, while Vedantta, M&M, and Tata Steel lost the most.
Stocks in the News
Sun Pharmaceutical surged 5 percent as the company informed exchanges about scrapping arrangement with Aditya Medisales.
Kotak Mahindra Bank closed with gains of 2 percent as the bank posted good numbers for December quarter. Analysts also gave a thumbs up to its banking business, but raised concerns on subsidiaries not having performed well.
Share price of Prabhat Dairy witnessed wild swings. The stock surged 20 percent in early trade after company board approved sale of its stake in step down subsidiary. But some concerns on interest of minority shareholders dragged the stock. It ended 15 percent lower.
Shares of Ashok Leyland closed 3 percent lower after brokerage house CLSA reiterated sell on the stock and also cut target to Rs 75 from Rs 85 per share.
Shares of Zensar Technologies slipped 5 percent after company’s December quarter (Q3FY19) net profit declined by 40 percent to Rs 55.28 crore against Rs 93.4 crore in the September quarter 2018.
Share price of UFO Moviez India declined 4 percent after NCLT dismissed the petition for the approval of scheme of amalgamation.
Public sector lender Union Bank of India fell 3 percent in morning in addition to 6 percent correction seen in previous session, as analysts disappointed with elevated slippages in Q3.
TVS Motor shares ended 3 percent higher as profit for December quarter rose 15 percent to Rs 178.4 crore.
Havells India posts 10% growth in Q3 net profit at Rs 196 crore. The stock ended 5 percent higher.
Shree Cement Q3 net profit falls 10% to Rs 301 crore but posted a good operational show. The stock ended over a percent higher.
European stock markets were in negative amid concerns on slowing global growth. Stoxx 600 Index was near the flat zone.
Asian markets declined as investors worried about global growth outlook, especially after IMF cut its forecasts. The Shanghai composite declined about 1.18 percent to close at around 2,579.70 and the Shenzhen component fell 1.435 percent to finish its trading day at approximately 7,516.79. The Shenzhen composite also shed 1.171 percent to close at about 1,314.58.