Heavy Selling In CG And Metals Drags Markets

It was yet another day of disappointment on D-Street as the markets ended in the red. Heavy selling in Capital Goods and Metals stocks dragged the Sensex and Nifty lower by 0.80% and 0.92% respectively. The Sensex managed to close above the 17300 levels and Nifty broke its support of 5250.

Among the sectoral indices, Metals and Capital Goods plunged down by 2.9% and 2.62% respectively and were major contributors in the lower closing of the broader markets. Others like Bankex, Power and Auto also closed down by over 1% each. Only FMCG and Teck managed to close positive.

The peer Asian markets also closed the trading day lower. Shanghai closed down by 0.29%, while Hang Seng and Nikkei ended lower by 1.49% and 1.10% respectively.

European markets have remain almost unchanged from the levels they saw in their early trades. FTSE is stable, while DAX and CAC are up by 0.74% and 0.24% respectively. Investors are eagerly awaiting tomorrow’s ECB meeting.

Dow Jones Futures is currently trading lower 62.5 points or 0.48% at 13025, indicating a negative sentiment.

Back home, heavy selling in Capital Goods and Metals stocks disappointed the street. CG stocks like BHEL and L&T were among the leading index losers, trading lower by 4.98% and 2.89% respectively. In the Metals pack too, stocks like Jindal Steel and Tata Steel lost 4.78% and 3.42% respectively. ICICI Bank, Tata Motors, SBI, etc. closed lower in the range of 2%-4%. Other stocks like NTPC, Infosys, RIL, M&M, Bajaj Auto, Coal India, etc. also closed their trades lower in the negative territory.

The gainers list has remained almost the same from what it was in the morning. Bharti Airtel finished as the highest gainer, higher by 3.28% at Rs 257.85. The investor favourite FMCG stocks also saw gains, with HUL and ITC up by 1.84% and 0.66% respectively. HDFC, Maruti Suzuki, HDFC Bank and TCS were some of the stocks that closed the day in the green.

Tech Mahindra closed higher by 1.3% at Rs 831.55 after the company made an announcement that it has entered an international partnership with KPN.

Axis Bank plunged 4.9% to Rs 930.35. Morgan Stanley has downgraded the bank from 'equal weight' to 'underweight' and has cut its target price on the stock to Rs 800 from Rs 900.

The market breadth also remained on the negative side today. Out of the 3259 stocks traded on the BSE, 1798 declined, 1321 advanced and 140 remained unchanged at day's end.