Capital Goods Drags Nifty Below 5900

The Indian markets extended their afternoon losses due to heavy selloff seen in Capital Goods, Realty, Auto and Banking stocks. The Nifty closed down by 36 points at 5896 and Sensex lost 139 points to close at 19,468.

The advance-decline ratio ended on the negative side at the end of the day. On the NSE, 1126 stocks closed in the red and 293 shares were in the green.

Top 5 NSE Gainers: GAIL ended up by 2.09% as the top gainer on the NSE. Other gainers included HDFC Bank, Hindustan Unilever, Tata Steel and Coal India.

Top 5 NSE Losers: Siemens hit a fresh 52-week low and ended 4.98% lower, followed by Bharti Airtel, Bharat Petroleum, Maruti Suzuki and Power Grid Corporation.

Most of the sectors ended in losses. Capital Goods, Oil & Gas, Realty and Auto were under selling pressure and ended down in the range of 1.49%-2.31%. FMGC and IT finished the day in the green.

On the global front, most of the Asian shares ended firmly in gains. The Hang Seng was up by 0.85%, followed by the Nikkei 225, which gained 0.49%, and KOSPI, which gained 0.18%. Straits Times, however, closed 0.32% lower. The Shanghai and Taiwan markets remained closed on account of a holiday.

The European markets are trading flat at the moment. CAC 40 is trading in positives with minor gains of 0.02%. The DAX and FTSE 100 have dipped by 0.09%-0.18%.

Buzzers: Dr Reddy’s Labs slipped down by 1.69% at Rs 1872. The company missed the street expectations as the third quarter consolidated net profit declined by a higher-than-expected 29% year-on-year to Rs 363 crore. Its operating profit came down by alarming rate from 27.2% to 15.8%.

Britannia Industries saw good momentum in the last hour of trade and rallied up 2.20% closed at Rs 494. The stock registered an intraday high of Rs 495.30 and a low of Rs 480.55. Its last session trading volumes were about 42,000, whereas today’s volumes were about 75,000. The scrip has touched it two-week high in today’s trading session.

As we stated in our last update, if the Nifty breaks the 5915 levels, it will test the levels of 5880. The index saw a low of 5884 and bounced back. If the breaks down further and close below 5880, it may slip down to the 5825 levels.