Sensex today: The benchmark indices were trading lower on Friday with the Nifty50 slipping its crucial 10,200 mark tracking negative trend in Asian markets. Asian bourses were on the defensive as worries over the US investigation into the Trump Organisation tested investor nerves, already frayed by fears US tariffs could hurt the global economy and trigger a trade war. At 1:50 pm, the Sensex was trading at 33,393, down 292 points, while the broader Nifty50 was ruling at 10,262, down 90 points. In the broader market, the BSE Midcap and the BSE Smallcap marginally slipped nearly 1 per cent each.
Among individual stocks, JP Associates spiked over 14 per cent, following news reports that ace investor Rakesh Jhunjhunwala-owned Rare Enterprises bought around 3 crore shares in the company in a block deal.
Back home, Exports grew by 4.5 per cent in February, the lowest expansion in the last four months, to $25.8 billion as shipments of engineering, textiles and gems and jewellery declined while trade deficit narrowed to a five-month low of $12 billion. The trade deficit — the difference between imports and exports — stood at $9.52 billion in February 2017, as per the data released by the commerce ministry.
Overseas, MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.2 per cent in early trade. Japan’s Nikkei was down 0.3 per cent. On Wall Street, the S&P 500 edged 0.08 per cent lower on Thursday, marking its first four-day losing streak of 2018.
On Thursday, Sensex dropped by 150 points to close at 33,685.54 in a volatile trade as heavy selling pressure in oil and gas, banking, metals, FMCG and energy stocks subdued investor sentiments. The wider Nifty50 fell by 50.75 points or 0.49 per cent to close trade at 10,360.15 points.
The BSE market breadth was, however, bullish with 1,636 advances and 1,053 declines. In terms of the broader markets, the S&P BSE mid-cap index edged up by 0.49 per cent and the small-cap index by 0.80 per cent.
Vinod Nair, Head of Research, Geojit Financial Services, said: “Market continued to consolidate in a narrow range following mixed trend in global market. Mid and small-cap outperformed as investors started accumulating stock in the oversold levels.”
“World Bank prediction of 7.3 per cent growth in FY19 will give a positive long term sentiment, but global trade concerns and scepticism on upcoming state election will refrain market for a decisive up move,” he added.
Nifty Metal top sectoral loser
Sensex tanks 400 points
Sensex extended losses to tank over 400 points in the afternoon trade, while Nifty dipped below its crucial 10,250 level with financial and energy stocks taking the brunt as fears of a trade war due to the imposition of U.S. tariffs preyed on investors’ minds.
Mahindra & Mahindra top gainer
Mahindra and Mahindra rallied over 2 per cent to Rs 751 after brokerage firm Jefferies India upgraded the stock to Buy from Hold earlier. It also increased its target price to Rs 860 a share from Rs 820 a share. Brokerage Motilal Oswal Securities also has a buy rating on the stock with a atrget price of Rs 889, an upside of over 22 per cent.
Markets at noon
At 1:50 pm, the Sensex was trading at 33,393, down 292 points, while the broader Nifty50 was ruling at 10,262, down 90 points. In the broader market, the BSE Midcap and the BSE Smallcap marginally slipped up to 0.2 per cent.
Stoploss: Rs 306
CMP: Rs 302.55
- Fresh selling in futures trade
- Profit-booking on the short-term chart
Edelweiss Securities on trade deficit
Trade deficit in February narrowed to $12 billion versus monthly run rate of $15 billion in past four months. To some extent, this was expected due to seasonal factors. In our view, a few trends stand out: a) non-oil exports have slowed to 2% YoY versus average 15% in previous three months. However, this largely reflects high base effect and, hence, is not concerning. Adjusting for base, the growth should still be in low teens; b) exports of labour-intensive sectors (gems/jewellery, fabric, etc) continued to struggle—persisting since mid-2017 and is a cause of concern; c) electronics imports continued to grow unabated at 20% plus, leading to sustained widening in electronics deficit; and d) agri-trade balance is gradually improving, which is encouraging. Going into March, the trade deficit could narrow further owing to seasonal factors, but the key monitorable will be trend in labour-intensive exports and strength in global trade.
Sensex heatmap at open
ONGC, Kotak Mahindra Bank and NTPC slipped over 1 per cent each, while Mahindra & Mahindra was the top gainer.
Market breadth, indicating the overall health of the market turned positive. On the BSE 968 stocks rallied, 522 stocks declined, while 63 stocks remained unchanged.
Stocks in focus
- Future Consumer : Signs pact with Bin Ablan group to form an Equal Jv Co.
- Puravankara : Unit to invest Rs 5 billion for Goa Housing Project.
- Wipro : Invests $2.02m in Avaamo Inc., taking total investment to $3.02m.
Nifty outlook by Angel Broking
Yesterday, although benchmarks remained under pressure and closed with some losses; the real action was seen outside the index. So many individual stocks from the broader markets soared during the session. This is very much in-line with our previous article as we have been focusing more on stock-specific moves. Going ahead, positional traders should keep a close track of the trading range 10,480-10,300 and as long as index oscillates within this, it would be a prudent strategy to continue with a stock centric approach.
The benchmark indices were trading flat. The Sensex was trading at 33,685, up 0.32 points, while the broader Nifty50 was ruling at 10,345, down 14.90 points.
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