Continuing downward spiral, the benchmark BSE Sensex and Indian rupee today plunged to their respective three-and-a-half-month lows on sustained foreign fund outflows.
However, gold prices rose by Rs 190 to close at Rs 27,190.
On the day, the Indian rupee fell by 24 paise to 63.56 against the US dollar, while BSE Sensex tanked 297 points to settle at 27,437.94.
Continued selling by foreign investors, who have been hit by controversial tax issue, kept the rupee under pressure.
Meanwhile, the BSE index fell for the seventh day today in eight sessions after IT behemoth Infosys shares tanked 6 per cent on disappointing earning numbers and guidance.
On increased offtake by jewellers to meet wedding season demand, gold prices rose by Rs 190 to close at Rs 27,190 per 10 gm in Delhi’s bullion market.
Costlier imports after the rupee weakened to over three-month low against the dollar also contributed to the rise in the precious metal prices.
At Kolkata, gold prices surged by Rs 180 to Rs 27,265 per 10 gm, while in Chennai, it gained Rs 220 at Rs 27,210.
Bullion traders said, besides marriage season demand, a firming trend in the global markets influenced domestic markets here.
Market Outlook by Vinod Nair, Head – Fundamental Research, Geojit BNP Paribas
Market started the day cautiously as seen in the last few days led with MAT issue and downgrading of earnings. During the last trading hours, huge correction from Infosys post Q4, shocked the market. Though expiry will impact market next week, we believe that in the medium term flow from budget session and Q4 outcome will largely influence the market. The budget session has already gathered pace with introduction of the important GST bill in Lok Sabha today. Market is eager to know whether the government will be able to pass GST and Land Bills in both Lok and Rajya Sabha in coming days. Regarding Q4, results of major companies to be announced next week will be important to know the extent of any downgrading of FY16E earnings.Market Wrap Up by Alex Mathews, Head – Research, Geojit BNP Paribas
After opening with a flat note, the markets entered into the negative zone in the morning session itself. In the second half more sell off was witnessed after the announcement of Infosys earnings. The quarterly numbers were slightly below the street expectations.
Nifty today opened at 8405 made an intraday high and low of 8413 and 8273 and finally closed at 8305, down around 93 points. The market breadth stood negative as there were seen 684 stocks advancing against 2080 stocks declining. The Nifty volatility index, India VIX stood at 19.1050 up around 3.27%.
The worst is not over for the markets as it is yet to be in the oversold region. We can expect more sell off in Monday or even Tuesday after which minor recovery can be expected.
The major losers for the day were Realty and Consumer Durables which closed down around 3.85% and 3.18% respectively.
In the stocks’ front, the major gainers were NMDC and ONGC which closed up around 3.45% and 3.07% respectively whereas the losers were INFY and Cipla which closed down around 6.08% and 3.79% respectively.
The FIIs were net sellers on 23 April 2015, Thursday on the cash markets segment, sold shares worth Rs 276.83 crore. The DIIs on the other hand were buyers on 23 April, bought shares worth Rs 559.60 crore in the capital markets segment.
The European markets were trading in green as the investors weighted on the company earnings. The US index futures were also trading in green.
Alembic Pharma, Andhra Bank, Geometric, Granules India, HIL, ICICI Bank, JSW Energy, Maruti Suzuki and UPL are some of the major ones which may announce their earnings on Monday.
At the forex market, the rupee today tumbled to 63.64 against the dollar but recovered partially to close at 63.56, registering a loss of 24 paise.
In last two trading sessions, the rupee has lost 74 paise, or 1.3 per cent against dollar.
Besides, the benchmark BSE Sensex has crashed by 1,004.16 points or 3.53 per cent this week.
Equity brokers said sustained capital outflows by foreign funds on tax claims despite government’s clarification, muted earnings and forecast of a below-normal monsoon, were major factors behind the plunge.
Globally, crude prices slipped in Asian trade on profit-taking following sharp gains in the previous session as ongoing unrest in the Middle-East fuels worries about supplies from the crude-rich region.
Brent crude eased by 28 cents to US dollar 64.57 per barrel in afternoon trade.
Market outlook by Vivek Gupta, CMT – Director Research, CapitalVia Global Research Limited
Nifty Future start from the week continued to fall and extend its previous week losses as high volatility was witnessed during the intraday; to close at lowest level in more than two week. Market breadth indicating the overall health of the market was negative. Broad based selling was seen across the board led by IT sectors, cement sectors, pharma and telecom sectors while some buying was seen in metal sector.
Proceedings in the parliament during the second and final part of the ongoing Budget session are being closely watched as the government hopes to pass the Constitution Amendment Bill for the introduction of a nationwide Goods and Services Tax (GST) in the country. The government had tabled the Constitution Amendment Bill for GST in the Lok Sabha during the winter session of parliament.
Movement of index in near term will depend on further reforms initiatives to be taken by the government and upcoming fourth quarter results of large cap companies like HDFC, Maruti Suzuki, ICICI bank, Idea cellular, Ambuja cement etc. to be announced next week.
Nifty April Future gave closing at 8338.70 with weekly net loss of 300.15 points.
Technically, Nifty Future is forming a distribution pattern and closed around the lower boundary line. Short term trend remains down until index moves above resistance level of 8550 and expected to be volatile and trade with negative bias as next week this month’s derivative contracts will expire. Deeper corrections can be seen till 8000 to 7800 levels if index break below its support level of 8270.
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