Post Session: Sensex, Nifty end in red despite positive global cues; TCS falls 3% Analysis for Jul 09, 2015

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Amidst choppy trade, the Indian equities ended lower for the third straight day on Thursday, led by losses in technology and oil & gas stocks. The investors also shied away from fresh investment ahead of Tata Consultancy Services Ltd"s earnings, slated to be announced today after market close. Further, gains in markets were also capped by losses in blue-chip stocks such as TCS, Infosys, BPCL, ONGC and Reliance Industries.

The BSE SENSEX closed at 27573.66, down by 114.06 points, or by 0.41 per cent, while the NSE Nifty ended 34.5 points lower at 8328.55.

Early today, Sensex rebounded over 100 points amid value buying in selected blue chip stocks such as Larsen & Toubro, ICICI Bank and HDFC Bank, but soon pared its gain and slipped into negative terrain as slew of negative development from China and Greece affected market performance.

The D-Street witnessed lackluster trade as investor"s maintained wait and watch approach ahead of corporate earnings season that kicks off today with IT bellwether TCS and Bajaj Corp set to unveil their April-June quarter report cards today. The caution also prevailed ahead of tomorrow"s industrial output data for May which may show that factory growth probably slowed to 3.6 per cent following 4.1 per cent in April, coupled with lingering concerns over China and Greece.

Analysts have warned that April-June 2015 may have been yet another disappointing quarter for India Inc. with earnings growth likely to have remained lackluster without a meaningful pickup in corporate investment, prompting a cautious approach by investors at Dalal Street.

In a similar trend, the broader market ended lower with the BSE MIDCAP closing at 10844.7, down by 32.41 points, or by 0.3 per cent, while the BSE SMLCAP settled 37.29 points or 0.33 per cent lower at 11313.98.

In the choppy trade, the BSE Sensex touched intraday high of 27798.13 and intraday low of 27540.6, while the NSE Nifty touched intraday high of 8400.3 and intraday low of 8323.

Leading the decline in the BSE Sensex pack were Vedanta Ltd. (Rs. 139.00,-4.86%), Tata Consultancy Services Ltd. (Rs. 2521.40,-2.80%), Bajaj Auto Ltd. (Rs. 2513.95,-2.33%), Infosys Ltd. (Rs. 937.70,-2.04%), Tata Motors Ltd. (Rs. 398.15,-1.73%), among others.

Meanwhile, Bharat Heavy Electricals Ltd. (Rs. 264.35,+3.59%), Larsen & Toubro Ltd. (Rs. 1847.50,+2.39%), Hindalco Industries Ltd. (Rs. 104.00,+2.21%), Hero MotoCorp Ltd. (Rs. 2605.40,+2.05%), Bharti Airtel Ltd. (Rs. 432.90,+0.83%), were among top gainers on BSE.

On the sectoral front, oil and gas and IT indices emerged as top losers, shedding 2.01 per cent and 1.91 per cent, respectively.

The Market breadth, indicating the overall strength of the market, was strong. On BSE out of total shares traded 2895, shares advanced were 1512 while 1276 shares declined and 107 were unchanged.

On the global front, Asian peers ended higher with markets in China rising for the first time in three days as officials took further measures to arrest an equity rout that has wiped out more USD 3 trillion of value. Hang Seng also rebounded after a severe dip in the previous session, while Japanese stocks ended marginally higher as an investor flight to the safety of the yen dimmed the lure for exporter stocks.

Meanwhile, European Stocks were also trading higher on hopes that Greece can strike a deal. Greece has until tonight to submit fresh economic reform measures including spending cuts to press for a new bailout and convince European leaders to keep the cash-strapped country in the euro.

Story first published: Thursday, July 9, 2015, 18:12 [IST]
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