Post Session: Sensex ends 100 pts lower; Nifty cracks 8,000 level Analysis for Aug 31, 2015

Posted By: Religare
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Amidst choppy trade, the Indian equities ended in negative terrain as uncertainties about the Fed rate hike and China's economy kept domestic bourses under pressure. Further, sharp gains in the previous two sessions also prompted investors to book some profit at Dalal Street.

Snapping two-day gaining streak, the BSE SENSEX closed at 26283.09, down by 109.29 points or by 0.41 per cent and the NSE Nifty ended quoting 7971.3, down by 30.65 points or by 0.38.

In the volatile trade, the BSE Sensex touched an intraday high of 26504.73 and intraday low of 26215.16, while the NSE Nifty touched high and low of 8043.6 and 7947.95, respectively.

Rating agency Ambit Capital has reduced its gross domestic product (GDP) growth target as well as its yearend that is FY16 end Sensex target from 32,000 to 28,000, saying that the Indian economy hasn't yet touched its bottom levels.

Investors also remained sidelined ahead of the GDP data for June quarter to be released after hours which may offer fresh cues over the health of Asia"s third biggest economy that expanded 7.5 per cent in the March quarter. The August Manufacturing and Services PMI data is also due this week.

Further, speculation that the US Federal Reserve may still raise interest rates in the near-term despite the China induced global financial turmoil, after the Vice President of the world"s top central bank warned that it was too early to rule out September policy tightening as the ongoing volatility in global markets may ease quickly while seeing a pickup in the pace of inflation.

Leading the decline on the D-Street were Bharat Heavy Electricals Ltd. (Rs. 227.15,-3.18%), Hindalco Industries Ltd. (Rs. 80.00,-2.14%), Bharti Airtel Ltd. (Rs. 355.05,-1.99%), Oil And Natural Gas Corporation Ltd. (Rs. 239.20,-1.79%), ICICI Bank Ltd. (Rs. 278.65,-1.73%), among others.

However, some buying were witnessed in stocks, such as Cipla Ltd. (Rs. 683.00,+3.52%), Dr. Reddy's Laboratories Ltd. (Rs. 4320.00,+3.38%), Lupin Ltd. (Rs. 1925.00,+3.34%), GAIL (India) Ltd. (Rs. 297.20,+2.55%), Vedanta Ltd. (Rs. 98.80,+2.54%), among others, among others.

On the sectoral front, power and realty indices were among top losers on BSE, slipping 1.54 per cent and 1.34 per cent, respectively.

The Market breadth, indicating the overall strength of the market, was weak. On BSE out of total shares traded 2755, shares advanced were 1193 while 1464 shares declined and 98 were unchanged.

On the global front, the Asian equities ended mostly lower, amid speculation that China may put a stop to its controversial stock market intervention. Shanghai Composite ended in red, while Japan"s Nikkei 225 tanked over 1 per cent as a stronger yen dimmed the appeal of exporter stocks. On the flip side, Hang Seng ended higher, paring early loses.

Story first published: Monday, August 31, 2015, 16:12 [IST]
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