Skip to main content

Market Update: Mayhem on Dalal Street as Sensex, Nifty tank over 2%; 166 stocks hit new 52-week low

The brutal sell-off in the Indian equity market was largely on the back of the US market giving way with the S&P 500 and Dow Industrials indices slumping more than 4 percent, as the Dow notched its biggest intraday decline in history with a nearly 1,600-point drop and Wall Street erased its gains for the year.

It was mayhem, a disastrous Tuesday for the Indian markets. The Sensex tanked over 1000 points in the morning trade while the Nifty nose-dived 300 points.

The brutal sell-off in the Indian equity market was largely on the back of the US market giving way with the S&P 500 and Dow Industrials indices slumping more than 4 percent, as the Dow notched its biggest intraday decline in history with a nearly 1,600-point drop and Wall Street erased its gains for the year.

All sectoral indices were trading lower by at least 2 percent with Nifty realty slumping over 4 percent dragged by stocks like DLF, Indiabulls Real Estate and HDIL, each tanking over 5 percent. Unitech, Sobha and Delta Corp were the other losers.

Bank Nifty dipped 3.2 percent led by Axis Bank and Canara Bank, falling over 4 percent each while SBI, PNB, Yes Bank and IndusInd Bank were the other top losers.

The top Nifty losers included names like Tata Motors which fell 7.11 percent followed by Axis Bank and Indiabulls Housing Finance, each shedding over 4.5 percent. UPL and Yes Bank were the other losers.

The top Sensex losers were Vakrangee which tanked 10 percent while Adani Power and Dilip Buildcon were down over 7 percent each.

The top Sensex gainers included Religare Enterprises which added 3.16 percent followed by Astral Poly Technik which added 2 percent.

139 stocks hit new 52-week low on NSE including Allahabad Bank,  Castrol India, Exide Industries, Fortis, IDFC twins, India Cements, LIC Housing Finance, PTC India Financial, Tata Motors, Union Bank and Suzlon Energy.

On the BSE, 158 stocks hit fresh 52-week low including names like Srei Infra, Tata Motors, Fortis Healthcare and Cosmo Films among others.

The market breadth was in favour of the declines on Tuesday morning with 84 stocks advancing while 1545 stocks declined and 381 stocks remained unchanged. On the BSE, 173 stocks advanced while 1947 stocks declined and 67 remained unchanged.

In an interview to CNBC-TV18, Sanjay Mookim of BofAML said that the pace of the decline in the market is astounding. He expects earnings growth in FY19 to be better than H2FY18 while he has a Sensex target of 32,000 by end of 2018.

When markets are underperforming, low PE stocks will perform well, he said, adding that this is not the time to buy midcaps.

Sanjay Mookim further added that divestment number looks relatively high if only it is done through secondary markets. Dynamics of Indian market and earnings environment are secondary to global markets.
www.shristocktips.com

Comments

Popular posts from this blog

Market Update: PSU bank index outperforms as PNB, Syndicate Bank jump 2-5%; JP Associates zooms 11%

The market breadth was in favour of the advances with 957 stocks advancing while 668 declined and 383 remained unchanged. On the other hand, in the BSE, 1176 stocks advanced and 888 declined and 108 remained unchanged.

The Indian markets on Friday morning were trading flat with the Nifty shedding 51 points or 0.49 percent  while the Sensex was down 178 points.

The Nifty PSU banking index was up 0.6 percent led by stocks like Syndicate Bank which jumped 5 percent followed by Allahabad Bank which gained over 3 percent. IDBI Bank and OBC were the other gainers. PNB gained 2.38 percent.

The top Nifty gainers included Mahindra & Mahindra and Aurobindo Pharma which were up 1.7 percent each followed by UPL, Yes Bank and Zee Entertainment.

The top Nifty losers included IOC and BPCL which fell 2 percent each followed by HPCL, Tata Motors and NTPC.

The most active Nifty stocks included IDBI bank which jumped over 3 percent while JP Associates zoomed over 10 percent after Rakesh Jhunjhunwala…

HDFC Sec retains sell on Bharti Infratel, reduces target to Rs 310 despite 22% fall in last 2 months

The share price has declined from a peak of Rs 480 to Rs 373 (22 percent) in last two months.

Bharti Infratel shares declined 1.5 percent to close at Rs 368 on Tuesday after HDFC Securities has reiterated its Sell rating on the stock with revised target price at Rs 310 (from Rs 387 per share) despite sharp fall in last two months. INDIAN STOCK TIPS

The share price has declined from a peak of Rs 480 to Rs 373 (22 percent) in last two months.

"Target price is based on 20x Dec-19E EPS (Rs 356) for business as usual (versus 24x earlier) less impact of Rs 60 per share from Vodafone-Idea merger (versus Rs 39 per share earlier) and likely acquisition of Vodafone-Idea stake in Indus at enterprise value of Rs 50 lakh per tower (+Rs 15 per share)," the research house said.

It further said the key reason for the de-rating is instant loss of tenancies on merger of Vodafone-Idea and impact of Reliance Communications and Aircel businesses’ scaling down.

This would push back Bharti Infrat…

Nifty could slip towards 9,900; 3 stocks which could give up to 11% return

A close beyond 10,400 levels with healthy volumes can pause the current bearishness triggering a short covering to levels of 10,640-10,730.

The Nifty index Futures continued to slide lower for the second month in a row making it 10 percent decline from the record highs. Further, it has broken down from a broadening wedge pattern along with a close below the 200-DMA, affirming weakness dominant in the markets at the moment.

A sustained trade below 10,050 can accelerate the fall to levels of 9,930-9,700. However, a close beyond 10,400 levels with healthy volumes can pause the current bearishness triggering a short covering to levels of 10,640-10,730.

Moreover, the relative strength index or the RSI has turned down from the neutral levels of 50 on two occasions in recent pullbacks suggesting further weakness in the coming trading sessions.

Here is the list of stocks which can give up to 11 percent return:

Arvind Ltd: SELL| Target Rs345| Stop Loss Rs410| Return 11%

On the weekly chart, Arv…