Nifty suffers longest decline in 8 years, midcaps crack1 min read . Updated: 13 May 2019, 05:03 PM IST
- Midcap and smallcap stocks saw a sharper fall
- Global markets continued to be roiled by US-China trade tensions
Indian markets fell sharply today with Sensex and Nifty extending their declines to the ninth day. The US-China trade war continued to rock global financial markets. The Sensex fell 372 points to 37,090 while Nifty ended 1.2% lower at 11,148 - its longest losing streak since May 2011. The broader markets saw steeper declines with BSE midcap and smallcap indices falling 1.9% and 2.1% respectively.
Shares of IDFC First Bank slumped 13% after the lender reported second straight quarter of losses on account of higher provisioning.
HDFC shares rose 1% after the mortgage financier's Q4 earnings beat the Street estimates. Just six out of the 30 Sensex stocks today managed to close in the green.
Shares of Sun Pharma today plunged 20% in a sudden fall in late trade before seeing some recovery at close. Shares fell to a 52-week low of ₹350.4 intraday on BSE as compared to their Friday's close of ₹438 on Friday.
Among other Sensex stocks, Yes Bank shares fell 5.6%, Tata Steel 3.2%, IndusInd Bank 3.2%, Tata Motors 3%, L&T 2.8%, NTPC 2.75%, ITC 2.6% and ICICI Bank 1.73%.
"Weak IIP data and escalating trade war between the US and China weighed on the sentiment. Markets are currently facing headwinds from both local and global front. Nifty has slipped below the crucial support of 11,200 and now the next support exist around 11,000," said Jayant Manglik, president of retail distribution at Religare Broking.
Sameet Chavan, chief analyst for technical and derivatives at Angel Broking, said today Nifty breached the strong support zone around 11,250-11,200 and "now, the final ray of hope is around 11,100–11,050, which is a combination of 61.8% retracement as well as the ‘200-SMA’ on daily chart."
L&T shares fell 2% after its March-quarter profit fell short of the Street's estimates and the conglomerate warned that disruptions in decision making processes due to elections could impact operating parameters in first half of 2019-20.
SBI turned in an impressive Q4FY19 performance with a sustained core and strengthening balance sheet. PAT undershot primarily due to increased provisioning pertaining to NCLT accounts and rise in coverage. SBI is well-positioned to exploit emerging opportunities amid sagging competition. Furthermore, value embedded in non-banking subsidiaries is getting more stable and scalable. Ascribing ₹83/share to subsidiaries, the stock is trading at an inexpensive 0.8x FY21E P/BV for RoE potential of 14-15% by FY21 (after factoring around 5% dilution in FY20)," Edelweiss Research said in a note. SBI shares were up 1.3% at ₹312 in early noon trade.
Domestic brokerage Edelweiss has maintained Reduce on Avenue Supermarts, which operates DMart retail stores, citing high valuation. "DMart is a play on the strong Indian retail story, and we estimate it would deliver revenue, EBITDA and PAT CAGR of about 25% each over FY19–21. Rising competition will make incremental margin expansion a task. Hence, we maintain ‘REDUCE/SU’ with a TP of ₹1,280 (35x 12-month forward EV/EBITDA). Stock is trading at 30.7x FY21E." DMart shares were trading 0.60% higher at ₹1,262 in early trade.
Oil futures were mixed today, with US crude edging lower, as investors and traders fretted over global economic growth prospects amid a standoff in China-US trade talks.
U.S. West Texas Intermediate (WTI) futures were at $61.58 per barrel, down 9 cents, or 0.2%, from their previous settlement. Meanwhile Brent crude futures were at $70.73 a barrel, up 11 cents, or 0.2%, from their last close. Brent ended the previous session little changed. (Reuters)