Sensex Tanks 184 Points On Dismal Corporate Earnings
The Sensex extended losses for second straight day, plummeting 183.75 points to close 28,155.56, while the broader Nifty dropped well-below the crucial 8,800-level following sustained sell-off across the sectors despite firm global cues
The benchmark Sensex extended losses for second straight day, plummeting 183.75 points to close 28,155.56, while the broader Nifty dropped well-below the crucial 8,800-level following sustained sell-off across the sectors despite firm global cues.
Volatility ruled across the spectrum barring FMCG counters which found minor buying interest, with shares of index heavy weight Tata Motors and SunPharma continue to witness heavy drubbing because of poor earning results.
Market witnessed lurking negativity after forceful overnight statement of US Federal Reserve Chairwoman Janet Yellen to hike rates in its policy review next month might may results renewed capital outflows from emerging economies.
Realty, industrials, auto, healthcare, consumer durables, metal and power sectors witnessed acute selling pressure outperformed by broader markets the midcap and small cap shares.
Auto major Tata Motors fell over 10 per cent after the automaker on Tuesday reported a sharp 96 per cent fall in December- quarter profit, citing sharply lower earnings at Jaguar Land Rover (JLR) and losses in its domestic business, weighed heavily on the bourses apart from profit-booking in recent gainers.
Sun Pharmaceutical also dropped over 4 per cent after 4.72 per cent decline in consolidated net profit for the December.
The 30-share Sensex, opening lower at 28,270.11, traded to an high of 28,382.32 and plunging to day's low of 28,102.23 before settling at 28,155.56, showing a loss of 183.75 points, or 0.65 per cent over its last close.
The gauge had lost 17.37 points yesterday.
The 50-share NSE Nifty also slid 67.60 points, or 0.77 per cent, to 8,724.70 after moving between 8,807.90 and 8,712.85.
Globally, European and Asian markets rose as Wall Street set record highs overnight after Federal Reserve Chairwoman Janet Yellen spoke in support of an interest rate hike next month.
Yellen said yesterday that the Fed will probably need to raise interest rates at an upcoming meeting in March, and that delaying rate increases could leave the Fed`s policy- making committee behind the curve.
Stocks of south korea, singapore, Japan and HongKong gained between 0.45 per cent to 1.23 per cent, while Sc (China) fell 0.15 per cent.
Paris CAC rose 0.48 per cent, while London's FTSE by 0.41 per cent and Germany's DAX up 0.50 per cent.
Meanwhile, Foreign portfolio investors (FPIs) sold shares worth a net Rs 6.45 crore yesterday, as per provisional data released by the stock exchanges.
Selling was witnessed in mid-cap and small-cap stocks.
Among secondary barometers, the BSE mid-cap index provisionally fell 1.16 per cent. The BSE small-cap index provisionally dropped 1.52 per cent. The declines in both these indices were higher than the Sensex's drop in percentage terms.
Of the 30-share Sensex pack, 18 scrips ended lower while the remaining 12 firmed up.
Major losser was Tata Motors slumped 10.32 per cent with the stock extending yesterday's 3.68 per cent fall triggered by the company's weak Q3 December 2016 results. Tata Motors' consolidated net profit fell 96.22 per cent to Rs 111.57 crore on 2.22 per cent decline in net sales to Rs 66855.18 crore in Q3 December 2016 over Q3 December 2015.
Sun Pharmaceuticals Industries fell 4.25 per cent, with the stock extending yesterday's 0.73 per cent fall triggered by the company's weak Q3 December 2016 results. On a consolidated basis, Sun Pharmaceuticals Industries' net profit declined 11.23 per cent to Rs 1,721.85 crore on 8.41 per cent rise in net sales to Rs 7,683.24 crore in Q3 December 2016 over Q3 December 2015.
It was followed by Tata Steel 2.57 per cent, Adani Ports 2.09 per cent, Hero Motoco 1.99 per cent, ICICI Bank 1.49 per cent, Maruti 1.32 per cent, Dr reddy 1.27 per cent, NTPC 1.08 per cent and Bharti Artl 0.99 per cent.
However, ITC rose by 0.96 per cent followed by TCS 0.53 per cent, HDFC Bank 0.49 per cent, Bajaj Auto 0.38 per cent, Asian Paints 0.34 per cent and Power Grid 0.32 per cent.
Among BSE sectoral and industry indices, realty fell by 3.53 per cent, followed by industrials 3.10 per cent, auto 3.03 per cent, healthcare 1.90 per cent, consumer durables 1.61 per cent, metal 1.35 per cent, power 1.30 per cent, telecom 1.15 per ent, capital goods 1.12 per cent and oil&gas 1.05 per cent, while, FMCG rose by 0.08 per cent.
The market breadth remained negative as 2,147 stocks ended lower, 688 closed higher while 150 ruled steady.
The broad market depicted weakness. There were more than three losers against every gainer on BSE. 2,143 shares fell and 698 shares rose. A total of 144 shares were unchanged.
The total turnover on BSE amounted to Rs 3,412.57 crore, higher than turnover of Rs 2,694.12 crore registered during the previous trading session.