Market

Market underperforms as financials drag indexes; Nifty settles just above 10,800

Updated : January 10, 2019 04:09 PM IST

Nifty Midcap Index ended 70 points higher at 17,691.

Bandhan Bank gained nearly 4 percent after Kolkata-based bank reported an all-time high net interest margin of 10.5 percent.

Goa Carbon reported a disappointing quarter as most plants were shut in October-December quarter.

Market underperforms as financials drag indexes; Nifty settles just above 10,800

Indian market closed lower after a narrow-range trade on Thursday. The BSE Sensex slipped 106 points lower to 36,106 and the NSE Nifty50 by 34 points at 10,822. Financials dragged indexes, while support for the bulls came in from IT stocks, primarily Infosys, as the rupee fell against the US dollar.

In fact, HDFC, the major index loser in trade today saw shares worth Rs 980 crore changing hands in block deals, while Kotak Mahindra Bank, HDFC Bank, IndusInd Bank and Axis Bank also dragged. Financials contributed 29 out of 34 points in Nifty’s fall.

The underperformance seen in banks dragged Nifty Bank 195 points lower to 27,529. The only frontline Index that saw a close in the green was Nifty Midcap Index, which ended 70 points higher at 17,691.

On the earnings front, Bandhan Bank gained nearly 4 percent after Kolkata-based bank reported an all-time high net interest margin of 10.5 percent on the back of robust loan growth of 46.1 percent YoY.

On the other hand, Goa Carbon reported a disappointing quarter as most plants were shut in October-December quarter for the maintenance work. The company reported a loss of Rs 5 crore against the profit of Rs 22.5 crore in the same quarter last year.

In the derivatives segment, the Nifty Put option of 10,700 added a little less than 1.5 lakh shares in the open interest with premium moving 3 percent higher. The Nifty January Futures closed with a premium of 30 points against a premium of 22 points on Wednesday.

Asian markets mostly slipped on Thursday following lower-than-expected Chinese inflation data, while investors digested the conclusion of a three-day trade negotiation between the Beijing and Washington.

Mainland Chinese markets, watched by investors in relation to the ongoing trade war, experienced a turbulent trading day that saw stocks close in negative territory. The Shanghai composite slipped 0.36 percent to close at 2,535.28, while the Shenzhen composite shed 0.26 percent to 1,303.48.

The Shenzhen component also fell 0.26 percent to close at around 7,428.61. Hong Kong's Hang Seng index ended largely flat, with shares of Chinese tech giant Tencent gaining 0.31 percent.

Elsewhere in Asia, Japan's Nikkei 225 slipped 1.29 percent to close at 20,163.80, while the Topix Index declined 0.85 percent to finish at 1,522.01.

South Korea's Kospi closed fractionally lower at 2,063.28 despite shares of chipmaker SK Hynix jumping 2.67 percent.

In Australia, the benchmark ASX 200 rose 0.29 percent to close at 5,795.30, with the sectors mostly higher. The heavily-weighted financial sub-index gained 0.21 percent as shares of Australia's so-called Big Four banks advanced.

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