Stock Market

Midcap outperforms Nifty, Sensex loses 131 pts; Infosys, Reliance drag

Chillicious News

Equity benchmarks extended losses for third consecutive session Monday as investors remained cautious amid rising geopolitical tensions and weak US jobs data that dragged global peers. They also maintained caution ahead of earnings season that will kick off by Infosys on Thursday.

The 30-share BSE Sensex was down 130.87 points at 29,575.74 and the 50-share NSE Nifty fell 16.85 points to 9,181.45 amid consolidation, dragged by Infosys, Reliance Industries and HDFC.

“We expect further consolidation ahead and suggest continuing with buy on dips approach,” Jayant Manglik of Religare Securities says.

Ashwani Gujral of ashwanigujral.com also reiterated his earlier stance that the market will remain sideways for few more days and then break on the upside.

According to him, it is unlikely to see a deep correction.

However, the broader markets outperformed benchmarks as the BSE Midcap and Smallcap indices gained 0.6 percent each on positive breadth. About three shares advanced for every two shares falling on the exchange.

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Technology stocks were under pressure after technology research firm Gartner has revised worldwide IT spending growth forecast downwards to 1.4 percent from 2.7 percent in 2017 and ahead of Infosys’ earnings. Infosys was leading contributor to Sensex’ loss, down 2.88 percent followed by Wipro and HCL Technologies that fell 2 percent each. TCS was down 0.7 percent.

Oil marketing companies shares prices continued to rise as IOC, BPCL and HPCL gained 1.5-3.6 percent on top of 2-5 percent rally in previous session.

Yes Bank stock closed above Rs 1,600 level for the first time, up 3 percent. Motilal Oswal has reiterated its buy rating on the stock with a target price of Rs 2,110 (implying 35 percent upside), citing robust book value CAGR of 23 percent, superior return on equities, strong asset quality and increased balance sheet granularity. The stock is available at around 30 percent discount to private banks like HDFC Bank, IndusInd Bank and Kotak Mahindra Bank, the research house says.

Amongst Nifty Bank stocks, only SBI & HDFC Bank close in the red. Axis Bank gained 1.4 percent and ICICI Bank was up 0.2 percent.

Reliance Industries, HDFC and Asian Paints among largecaps were other losers, down 1-2 percent while Tata Motors and Adani Ports gained 1-1.5 percent.

In the broader space, United Spirits, Radico Khaitan, GM Breweries, Globus Spirits, Tilaknagar Industries and United Breweries were down 3-7 percent after Madhya Pradesh Chief Minister Shivraj Singh Chouhan decided to shut down all liquor across the state in a phased manner.

NIIT share price lost nearly 6 percent as its Chief Executive Officer Rahul Keshav Patwardhan resigned. Sobha slipped nearly 10 percent as promoter Sobha Menon sold 4.15 percent stake in company on April 7 via open market sale.

Madhucon Projects surged 13 percent on receiving letter of award valued at Rs 173 crore, Rs 317 crore and Rs 166 crore on EPC mode.

Healthcare stocks were in action today. Divis Labs was up 5.6 percent as the US health regulator exempted some more products manufactured at company’s Visakhapatnam unit from import alert.

Marksans Pharma spiked 7 percent after the US FDA issued four observations, which are procedural in nature, for Goa unit inspected from April 3-7. Torrent Pharma gained 1 percent as sources told CNBC-TV18 that the company signed deal with Novartis to buy generic brands. Ajanta Pharma also gained 1 percent on zero USFDA observations for its Dahej unit.

Meanwhile, European markets were under pressure amid increased geopolitical risks as investors digested the US missile attack in Syria last week. Asia ended mixed.