Today’s Action:
Benchmark indices had a yet another plummeting trading session as they headed deep in the south. Indian market enters into under pressure.
Daily Market Review:
There seemed to be no respite for the Indian markets as the global turmoil continued to drag the indices. After the Dow Jones crashed yesterday by over 4%, major global indices posted some hefty losses today.
India’s frontline indices opened gap down today, as the weak global cues continued to haunt the investors. Broader indices also had a brutal opening today, however some intermittent buying helped them to recover the early morning losses.
The Nifty and the Sensex dropped 1.58% and 1.61%, respectively while the Nifty Midcap and the Smallcap indices corrected 1.62% and 2.77%, respectively.
All the sectors ended in deep red today due to the heavy sell-off in the market. The top three losers were Nifty IT (-2.9%), Pharma (-2.19%) and PSU Bank (-2.11%).
The market breadth remained in favour of losers once again. On NSE, 238 shares advanced against a decline in 1318 shares. A total of 33 shares remain unchanged.
The IND 47 index, which is a list of top 47 stocks in chart and fundamental characteristics, lost 2.92% today.
From the earnings corner, Lupin announced its Q3 FY 2018 numbers today. The results were very disappointing as the net profit fell 65%, y/y to INR 222 crore due to pricing pressure in US. The stock fell over 4% intraday post results.
PNB also announced its Q3 FY 2018 numbers. The Company’s profit rose by 11% y/y thus missing the consensus estimates and loan book grew by 17%. The asset quality improved a bit as gross non performing assets were lower at 12.11% compared to 13.31% in the previous quarter.
Today, the Nifty attracted one distribution day due to higher trading volume compared to the previous session. The total distribution day count now stands at three each on the Sensex and the Nifty. Both the indices have breached their 50-DMA and are trading below it thus warranting a change in market condition to ‘’Uptrend Under Pressure’’.
RBI policy decision on interest rate, which is due tomorrow, might have a great impact on investor sentiment. As per market expectation, RBI is expected to keep the interest rate unchanged.
Current Outlook:
– Be cautious with any new purchases.
– Form a defensive game plan for your portfolio.
– Stay disciplined and exercise sound sell rules
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