Sensex slips over 100 points; Nifty50 below 8,600; Tata group stocks crack up to 9%

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NEW DELHI: The S&P BSE Sensex slipped over 100 points in morning trade on Thursday led by losses in Tata Motors, HDFC Bank, TCS, Axis Bank, and SBI.

The Nifty50 slipped below its crucial support level of 8,600 weighed down by losses in realty, power, metal, consumer durables, capital goods, and banking stocks.

At 09:20 am: The 30-share index was trading 79 points lower or 0.30 per cent at 27,757. It touched a high of 27,843.62 and a low of 27,726.86 in morning trade.

The Nifty50 was trading at 8,585 down 30 points or 0.34 per cent. It touched a high of 8,609.90 and a low of 8,575.35 in the first 30 minutes of trade.

The S&P BSE Midcap Index was down 0.53 per cent and BSE S&P Smallcap Index was trading 0.08 per cent lower.

ITC (up 0.8 per cent), ONGCBSE 0.59 % (up 0.64 per cent), Adani Ports (up 0.8 per cent), and Sun Pharma (up 0.47 per cent) were the major Sensex gainers.

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Tata Motors (down 3.4 per cent), Tata Steel (2.7 per cent), Asian Paints (down 1.5 per cent), and Lupin (down 1.1 per cent) were the major Sensex losers.

Domestic equity indices are likely to trade on a flat to negative note on Thursday, tracking mixed closing for US stocks in overnight trade and ahead of the earnings of many blue chip companies.

The day will see high volatility due to expiry of October series futures and options contracts.

135 BSE-listed firms to announce earnings: As many as 135 companies would announce their September quarter earnings on Thursday. The list includes Maruti SuzukiBSE 0.32 %, ONGC, Tech MahindraBSE -0.94 %, ABB, MRF, PVR, TVS MotorBSE -0.40 %, Emami and Bharat ElectronicsBSE -0.08 %. Through the week, a total of 475 BSE-listed companies will announce their September quarter numbers.

Cues from Singapore negative: At 7.45 am, Nifty50 futures on the Singapore Stock Exchange were trading 13 points lower at 8,602, indicating a negative opening for the domestic market.

“The market, in many instances, has priced in a bit of earnings recovery. If you look at the multiples, they have gone up way ahead of earnings outlook for the companies. The domestic market is hanging around and overseas cues are probably more important than how the particular earnings season shapes us,” said Sanjay Mookim, BofA ML.

F&O rollovers at 57%: Marketwide rollover of F&O contracts to the November series stood at 57 per cent on a D-1 basis against average rollover of 59 per cent seen in last three series. Rollover of Nifty futures stood at 52 per cent, which was lower than the average rollover of 58 per cent seen in last three series.

“Low roll levels have been a big cause of concern this series. On the back of this, fresh arbitrage positions have shown reluctance to rollover,” EdelweissBSE -0.64 % Securities said in a note.

Nifty50 formed ‘Bearish Belt Hold’ pattern: A ‘Bearish Belt Hold’ pattern formed after a ‘Hammer’ formation signifies that weakness still persists and traders should tread with caution. This pattern often signals a reversal in investor sentiment from bullish to bearish, but traders should await further price action before making any decision.

In the near term, if the Nifty50 breaches below the 8,550 level, it may threaten the recent bottom formed around the 8,500 mark.

Asian markets stay weak: The Chinese CSI300 fell 0.27 per cent to 3,345.77 on Thursday morning. Japan’s equity benchmark Nikkei was trading 0.28 per cent lower at 17,343. Other Asian indices, including Hong Kong’s Hang Seng (down 1.02 per cent), South Korea’s Kospi (up 0.22 per cent) and Taiwan’s TWSE (down 0.78 per cent), were trading mixed.

US markets ended mixed overnight: The Dow Jones Industrial Average climbed 30.06 points, or 0.17 per cent, to 18,199, but the S&P500 index edged 3.73 points, or 0.17 per cent, lower at 2,139 and the Nasdaq Composite fell 33.13 points, or 0.63 per cent, to 5,250.

Brent crude below $50 a barrel: Crude oil prices slipped below $50 a barrel mark on Thursday on doubts that Opec will be able to bring together its members and Russia to organise a coordinated crude production cut, Reuters reported.
Brent crude oil futures rose above $50 a barrel early on Thursday, but fell back to $49.91 by 0034 GMT, 7 cents below their last closing price. WTI futures were trading at $49.17 a barrel, down 1 cent from their previous settlement, Reuters said.