Sensex snaps 5-day winning streak; HDFC, Infosys help Nifty close week above 10,000

The market was moderately lower at close but recouped losses in last hour of trade Friday, with the Nifty closing the first day of August series above 10,000-mark led by HDFC and Infosys.

The 30-share BSE Sensex also cut losses by more than 200 points, down 73.42 points to close at 32,309.88 due to selling pressure in private banks, pharma and infra stocks.

The 50-share NSE Nifty was down 6.05 points at 10,014.50 after hitting an intraday low of 9,944.50.

The broader markets outperformed benchmarks despite weak breadth, with the BSE Midcap index up 0.5 percent. About 1,388 shares declined against 1,248 advancing shares on the BSE.

HDFC again ended at fresh record closing high of Rs 1,783.80, up 3.2 percent on top of 5.83 percent rally in previous session that was driven by value buying, especially after June quarter earnings. Even analysts retained their positive stance on the stock.

Yes Bank also retained its uptrend, surging 3.2 percent to end at record closing high of Rs 1,844. It was in addition to 4.3 percent upside in previous session after stellar performance in Q1 earnings and stock split news.

Dr Reddy’s Labs was biggest loser among Sensex stocks, down 6 percent as brokerage houses turned bearish on the stock after disappointing earnings.

HDFC Securities downgraded DRL to sell with a target price of Rs 2,275 as its valuations are expensive compared to peers. “We have further cut FY18/19/20 estimates owing to the continuous and severe erosion in the base business. Till the time we have visibility on the resolution of the warning letter, which would spark a recovery in the US business, the outlook is bleak,” it reasoned.
More to come….