Stock Market Highlights: Indian equity benchmarks Sensex and Nifty ended lower Tuesday dragged sharp selling in pharma stocks amid weak global cues. Broader indices, midcap and smallcap indices also closed lower each. Among NSE's sectoral indices, Nifty Pharma plunged the most over 4 percent followed by private banks, FMCG, realty, auto and IT indices, while Nifty Metal and Nifty PSU Bank closed in the green.
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Deepak Jasani, Head of Retail Research, HDFC Securities
Indian benchmark equity indices once again failed to hold on to gains on July 27 as Asian markets came under pressure after China continued crackdown on its internet businesses Nifty has formed a bearish Engulfing Top like pattern. It has repeatedly failed to cross the 15,962 level. With the US Fed meet and F&O expiry over the next two days, we could see heightened volatility in the markets. 15,632-15,824 could be the band for the Nifty over the next 1-2 sessions.
Ajit Mishra, VP - Research, Religare Broking
Markets traded volatile for yet another session and lost nearly half a percent. The tussle is still on over the next directional move in the index and there’s no clear indication yet. Excessive volatility due to prevailing earnings season and upcoming monthly expiry of derivatives contracts are further adding to the participants’ worries. We reiterate our view to restrict leveraged positions and wait for clarity.
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities
For the third consecutive day, Nifty failed to surpass the levels of 15,900, which has triggered tired bull liquidation below the levels of 15,750. During the day, Nifty fell to 15,700 levels, where it has the support of huge Put writing. The market was down mainly due to consistent and aggressive selling from FIIs in the Asian markets. Today, due to steep weakness in Dr Reddy, we saw massive liquidation in other pharmaceutical companies. The Nifty Pharma index fell more than four per cent during the day, which is the biggest intraday fall after the month of December 2020. The Nifty Metal index closed in the positive territory for the fourth consecutive day. The setup of the market is range bound and as we are approaching the supports of the lower boundary 15,650-15,600, we need to be stock specific. On the higher side, 15,810/52,750 and 15,900/53,100 would be resistance levels.
Manish Shah, Founder, www.Niftytriggers.com
Nifty continues to trade in a band of 15,950-15,650 and this band is in force for the last six weeks. The balance of power has not shifted in favour of either bulls or bears. In a range-bound market, the strategy is simple. One buys at the support and sells at the resistance. Nifty is almost in a perfect range of 15,600-15,950. If Nifty drops towards 15,650-15,600 we should wait for some reversal signals to go on the long side for a capped upside of 15,900-15,950. A rising 50 period moving average is at 15,650 and also at the support of the rising trendline. Thus 15,600- 15,650 is a very good support zone. With just three days for the July 2021 contract to expire Nifty may not trade above 15,950 and below 15,650. Expect the grind to continue for some more time.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The weakness with choppy trend continued in the Nifty and still there is no respite for bulls at the lows. The chart pattern of daily and weekly signal a possibility of an upside bounce in the market from the lows of around 15,650-15,680 levels in the next 1-2 sessions. On the higher side 15,900 remains an overhead hurdle for the near term.
Sumeet Bagadia, Executive Director, Choice Broking
The benchmark index wiped out its early gains and traded lower throughout the day. Finally, the Nifty50 closed at 15,743.10 levels with a loss of 81 points while Banknifty ended at 34,794.70 levels with half a percent fall. Technically, on the daily chart, the nifty50 index has formed a long bearish candlestick and closed below the prior two days of lows. However, there is good support at around 15,650 levels, which is a 50-days SMA support. Overall, the Nifty index is struggling in a range of 15,700-15,900 and either side breakout will decide the further direction. At present, Nifty is finding resistance around 15,900 levels while on the downside, support is intact at 15,600 levels.
Mohit Nigam, Head, PMS - Hem Securities
Indian Benchmark saw a sudden sell-off with Sensex falling more than 300 points and VIX spikes to 8 percent. The Hang Seng Index sank 4.2 percent as speculation swirled that US funds are offloading China and Hong Kong assets. The mid-small-cap segment is witnessing high volatility in response to results. Most sectoral indices were in the negative zone with pharma being the worst hit and Dr Reddy's Lab shares dropped 10 percent after its Q1 report disappointed the market. Immediate support and resistance for Nifty50 are 15,600 and 16,200 respectively.
Abhishek Chinchalkar, CMT Charterholder and Head of Education, FYERS
For the umpteenth time, Nifty has yet again faced a strong headwind on approaches near 15,900. The benchmark index has given up all of its early session gains to turn red, weighed by profit-booking across sectors, most notably among the pharma stocks. A strong sell-off among Chinese and Hong Kong markets have also added to woes. Meanwhile, metals and PSU banks are the only sectors that are trading noticeably in green at present.
Currently, Nifty remains in a consolidation mode between 15,500-15,400 on the downside and 15,900-16,000 on the upside. Until we get a decisive move out of this band, one should avoid building directional trades in the index and instead prefer a stock-specific long/short approach. Having said that, with the Federal Reserve meeting scheduled tomorrow and the monthly F&O expiry on Thursday, it would be advisable to trade on a lighter note, as we could see a pickup in volatility over the next two sessions.
Rupee At Close | The Indian rupee ended marginally lower at 74.46 per dollar amid selling in the domestic equity market. The local currency opened at 74.36 per dollar against the previous close of 74.42 and traded in the range of 74.35-74.54.
Market At Close | Market closes lower after a range-bound trading session; Pharma top losers.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research
The market witnessed a correction after a failed attempt to hold the support level around the Nifty 50 Index level of 15,800. The market suggests, 15,700 will be an important support level from a short-term perspective. Sustaining above 15,680-15,700 levels, the market expects to bounce back, and trade in the range of 15,680-15,900. The technical indicator suggests, a volatile movement in the market in the range of 15,680-15,900.
Market At Close | Here are the highlights of today’s trading session
- Market Closes Lower After A Range-bound Trading Session; Pharma Top Losers
- Sensex Falls 274 Points To 52,579 & Nifty 78 Points To 15,746
- Midcap Index Slips 119 Points To 27,455 & Nifty Bank 152 Points To 34,797
- Pharma Stocks Slip Led By Dr Reddy’s & Alembic Pharma On Weak Q1 Earnings
- Dr Reddy’s Falls Over 10% To Record The Biggest One-day Fall In Last 5 Years
- Alembic Pharma Slips More Than 11% After Company Withdraws FY22 Guidance
- Nifty Pharma Falls 4% With All Its Constituents Closing In The Red
- Metal Stocks Rise Following Rpts Of China Mulling Export Tariffs Of 10-25% On Steel
- Nifty Metal Rises Over 1%; Hindalco, Nalco, JSPL & Tata Steel Top Gainers
- Bajaj Finserv Continues The Gaining Momentum With Stock Up 5% In Last 2 Sessions
- Reliance Fails To Hold 100-DMA Of 2,067, Ends At A 2-month Closing Low
- Manappuram Fin, Pfizer, Jubilant Food, Trent, AB Fashion Top Midcap Gainers
- Ramco Cements Closes 6% In The Red After Lower-than-expected Q; Stock Down 6%
- REC, Granules, PFC, CONCOR, Indiabulls Hsg, Guj Gas Amongst Top Midcap Losers
- Zomato Snaps 3-day Gaining Streak, Closes 8% Lower
- Market Breadth Favours Declines; Advance-Decline Ratio At 3:4
Closing Bell | The Indian equity benchmark indices ended lower Tuesday dragged selling in pharma and private banking stocks amid weak global cues. The Sensex fell 273.51 points, or 0.52 percent, to 52,578.76, while the Nifty closed 78.00 points, or 0.49 percent, lower at 15,746.45. Broader indices, midcap and smallcap indices also closed lower each. Sell-off in Asian markets dented sentiment.
Among NSE's sectoral indices, Nifty Pharma plunged the most over 4 percent followed by private banks, FMCG, realty, auto and IT indices, while Nifty Metal and Nifty PSU Bank closed in the green. Dr Reddy’s Laboratories, Cipla, Axis Bank, Adani Ports & SEZ and Divi’s Laboratories were the top Nifty50 losers, while Hindalco Industries, SBI Life Insurance, Tata Steel, Bajaj Finserv and SBI were the top index gainers.
Glenmark Life Sciences subscribed 2.39 times so far on day 1; retail portion booked 4.45 times
The initial public offering (IPO) of Glenmark Life Sciences witnessed strong investors’ interest as the issue has been subscribed 2.39 times so far on July 27 - the first day of the bidding process. The offer received bids for 3.58 crore equity shares against the IPO size of 1.50 crore equity shares, according to data available on the exchanges. The portion set aside for retail investors was subscribed 4.45 times, while that for non-institutional investors is subscribed 69 percent. Qualified institutional buyers have put in bids for 7,640 equity shares against their reserved portion of 42.42 lakh equity shares.
APL Apollo Tubes | The Board of Directors of the company on August 6 will consider a proposal for the issue of bonus shares on the equity shares of the company.
Nimish Mehta of Research Delta Advisor on Dr Reddy's Laboratories
For Dr Reddy's there are many triggers in terms of the US pipeline. We still remain enthused about the pipeline on this company, we are keeping a watch on products. US launch pipeline itself is very exciting and that is what is keeping us also looking forward to some good numbers as and when they launch these products.
CLSA on Vedanta
Vedanta reported 1QFY22 Ebitda of Rs 99 billion, largely in line with estimates. During the call, it highlighted deleveraging at the parent (VRL) will be a key focus this year, and that Vedanta could even look to raise debt to pay-out a dividend. It also announced 0.4 mt of aluminium smelter capacity expansion at Balco. Capex for FY22 was guided at $1.8 billion-$2 billion. Operationally, its results were largely in line with higher aluminium offsetting weak oil and power. We maintain our O-PF rating despite an inexpensive valuation as we await clarity on its capital allocation decisions.
Dixon Technologies Q1FY22 | The company's net profit jumped to Rs 18.1 crore from Rs 1.6 crore and revenue increased to Rs 1,867.3 crore from Rs 517 crore, YoY. EBITDA rose to Rs 47.9 crore from Rs 16.9 crore, while EBITDA margin narrowed by 70 bps to 2.6 percent from 3.3 percent, YoY.
ICICI Direct on Glenmark Life Sciences
Glenmark Life Sciences has a good performance execution and a clean regulatory track record. The company is also a leading developer and manufacturer of select high value, non-commoditised APIs in chronic therapies and works with 16 of the 20 largest generic companies globally. The growth momentum also has a strong undercurrent of global API industry growth. We recommend Subscribe to the issue.
Axis Bank shares drop after Q1 profit misses estimates
Axis Bank share price declined over 3 percent intraday in trade on Tuesday as it missed the street's expectations on net profit in June quarter results. The country's fourth-largest private sector lender by market value had reported its quarterly results on Monday after market hours. Axis Bank posted a 94.23 percent year-on-year surge in net profit to Rs 2,160.15 crore for the quarter ended June 30. A CNBC-TV18 poll had predicted the bank's net profit at Rs 2,575.1 crore. Total income rose 2.94 percent on a year-on-year basis to Rs 19,591.63 crore, according to a regulatory filing. Read here.
Asian stocks hit 2021 lows on China tech selling, real yields drop before Fed
Asian stocks hit their lowest this year on Tuesday on a third straight session of selling in Chinese internet giants, and real bond yields hit record lows ahead of a Federal Reserve policy meeting, said a Reuters report. The Hong Kong benchmark fell 4.57 percent, its third day of declines, with the Hang Seng Tech index down 8.69 percent to its lowest since its inception in July 2020. It has fallen around 17 percent in three days and has lost 44 percent from a February peak.
Ramco Cements Q1FY22 | The company’s standalone net profit rose 54.2 percent to Rs 169 crore from Rs 109.6 crore, while revenue increased 18 percent to Rs 1,229 crore from Rs 1,042 crore, YoY.
Heena Naik, Research Analyst - Currency, Angel Broking
The two day FOMC Policy Meeting is likely to end tomorrow and the release of the policy statement may draw heightened interest given the uptick in concerns around the delta variant. The US Fed Funds target rate range of 0-0.25 percent and the monthly QE asset purchases is likely to remain the same. In his recent statement, the US Fed Chair made it clear that the inflation pressures are largely transitory which means that an imminent shift in policy is unlikely. However, there could be discussions surrounding the path of tapering. Nonetheless, there is a growing hawkishness creeping into the viewpoints expressed by other FOMC members given the strong economy and the fact that inflation is running at more than double its 2 percent target. Any hints or talks of a September tapering and improving global growth environment could push the US Dollar Index higher in turn hampering all other currencies.