10:35 a.m.: Losses in frontline IT stocks and ITC continue to drag markets. TCS, ITC, Wipro and Tech Mahindra down over 1 per cent. Adani Ports (-3.2%) is the biggest Nifty50 loser and is lower for the third day on earnings concerns.
10:25 a.m.: Markets remain under pressure: Sensex down 150 Points, Nifty below 7,700; IT stocks, ITC drag
10:00 a.m.: Valuations in India not particularly cheap but India investment is most effective way of diversifying from China risk, says global brokerage CLSA.
Rupee should remain relatively stable but biggest risk to currency market is if Raghuram Rajan’s term is not renewed, adds CLSA.
09.40 a.m. The Sensex is hovering around the psychological 25,000 mark. It has not slipped below 25,000 since April 12, 2016. Most market experts are cautious in their outlook, given global headwinds and concerns about monsoon rains.
Investors should not go long in Nifty as long as the index trades below 7,760-7,770, says Gaurav Bissa, derivatives analyst with LKP Securities. Long positions in Nifty should only be created above 7,770, with stop loss at 7,720 for target of 7,900, he added.
Jayant Manglik of Religare Securities said Thursday’s erratic moves signals a trend reversal. He advised analysts to “accumulate quality stocks” and “wait patiently for resumption of uptrend”.
09.30 a.m. The BSE Sensex slumped nearly 200 points, while the broader Nifty traded below the key 7,700 levels on Friday. Domestic markets fell tracking weak global sentiments.
All sectoral indices on the Bombay Stock Exchange traded in the red, though the FMCG sub-index underperformed, falling over 1 per cent.
Tobacco major ITC, which has the second largest weightage in the Nifty, fell over 3 per cent. ITC – India’s biggest cigarette maker – has shut its plants from May 4 to comply with a new pictorial warnings rule issued by the government.
Tata Motors, Dr Reddy’s Lab, BHEL, M&M and Tata Steel were other Nifty stocks traded with over 1 per cent cuts.
Gains were led by mobile operator Bharti Airtel, which traded over 1 per cent higher.
Corporate earnings continue to be in focus. Royal Enfield motorcycle maker Eicher Motors, which reported its March quarter numbers yesterday, traded 0.4 per cent higher. However, Hero MotoCorp – India’s biggest motorcycle maker- fell 1 per cent, post its Q4 numbers. Hero had reported its March quarter earnings after markets closed yesterday.
Among midcap stocks, Fortis Healthcare shares fell over 3 per cent. The company’s promoters were fined nearly Rs 2,600 crore for “concealing” facts in a 2008 deal involving drugmaker Ranbaxy.
As of 09.28 a.m., the Sensex traded 162 points or 0.64 per cent lower at 25,100, while the Nifty was down 48 points at 7,687.