India : Freefall on D-Street: Nifty ends below 8300, Sensex tanks 699pts
It was free fall on Dalal Street mostly due to profit booking. The Sensex is down 698.86 points or 2.5 percent at 26818.82 and the Nifty is down 229.45 points or 2.7 percent at 8296.30. About 462 shares have advanced, 2223 shares declined, and 146 shares are unchanged.
The midcaps underperformed the benchmark indices closing 3.5 percent in the red while the bank stocks slipped more than 2 percent. Nifty auto was another index which took a beating and ended more than 4.5 percent down. Pharma stocks were relative outperformers ending the day four-fifth of a percent in the negative territory.
Analysts are worried that although Indian fundamentals are better than other emerging markets, he feels demonetisation could suppress domestic demand and defer revival of corporate earnings. Pramod Gubbi, Director Institutional Sales at Ambit says several sectors exposed to strong consumption and demand drivers might take a hit.
He further says that there is a certain amount of uncertainty in near term implications of the US elections and demonetisation move by the Indian government may deter any runaway rally in the markets.
Meanwhile, State Bank of India fell 3 percent after its Q2 results disappointed. Its bad loans doubled in scond quarter and provisions for further NPAs also doubled by the bank.
The bank reported nearly 35 percent drop in its profit, on back of rise in provisions and contingencies SBI saw fresh slippages of Rs 10,341 crore, rise of nearly 1 8 percent from Q1. The Bank’s provisioning also went up by 21 percent QoQ.
In the auto space, Mahindra and Mahindra reported an impressive set of numbers for the second quarter. The company beat street estimates on all major parameters.
The homegrown auto major reported a 27 percent jump in its standalone net profit to Rs 1163.27 crore for the second quarter ended September 30, 2016.
M&M tanked 6 percent as benchmark indices tumbled. Other losers in the Sensex were Adani Ports, ICICI Bank, Hero MotoCorp and Asian Paints. Sun Pharma, boosted by its firm Q2 rsults announced last evening post market hours, was up 3 percent and only green stock in the Sensex.
