Stock Market

Sensex falls for 2nd day, Nifty ends below 7750; Lupin tanks 9%


Chillicious Team

Equity benchmarks extended fall for the second consecutive session Friday despite positive global cues. The broader markets also caught in late bear trap as the BSE Midcap and Smallcap indices declining 0.5 percent and 0.8 percent, respectively.

The 30-share BSE Sensex slipped 97.82 points to 25301.90 and the 50-share NSE Nifty dropped 33.70 points to 7749.70. The market breadth was also negative as about two shares declined for every share rising on the Bombay Stock Exchange.

Samir Arora of Helios Capital Management feels that India can correct 5 percent if global markets fall. According to him, money that leaves India is unlikely to come back soon.

Meanwhile, the Securities and Exchange Board of India (SEBI) on Thursday tightened participatory notes (P-Notes) norms by imposing limits on the transfer of P-Notes and seeking more disclosure.

Samir Arora said this won’t be a genuine issue for regular investors because foreign institutional investors (FII) using P-Notes meet the norms. Now new P-Notes will be issued only after FII standards are complied with, he added.

Lupin was the leading contributor to Sensex’s fall, crashing more than 9 percent despite a strong quarterly earnings report. Brokerages are worried about future prospects of the company following recent FDA observations on Goa & Mandideep plants and due to likely higher R&D expenses and cut in FY18 sales guidance by the company.

More to come…