Sensex drops 224 pts in fag-end, Nifty below 19,400; Delta Corp sinks 23%

CLOSING BELL ON JULY 12, 2023: Shares of online gaming firms wilted under selling pressure on Wednesday owing to the 28% GST levy. Meanwhile, HDFC signed-off its from the bourses with a 0.6% loss.

Stock Market Highlights: The frontline indices succumbed to aggressive selling in late deals, mainly in IT ahead of TCS and HCL Technologies Q1 earnings. Investors also preferred to keep positions on the lighter side ahead of the inflation numbers in India and later tonight in the US. 

The S&P BSE Sensex dropped to a low of 65,320 – down nearly 500 points when compared to the day’s high of 65,812. The Sensex eventually ended with a loss of 224 points at 65,394. The NSE Nifty swung in a range of near about 150 points, before settling 55 points lower at 19,384.

Among the Sensex 30 shares, Infosys, Tata Motors and UltraTech Cement declined over a per cent each. NTPC, IndusInd Bank and Larsen & Toubro were the other prominent losers. On the other hand, Kotak Bank, Asian Paints and Sun Pharma finished on a positive note.

That apart, shares of TCS and HCL Technologies slipped 0.5 per cent and 0.7 per cent, respectively, ahead of their Q1 results later today. HDFC signed-off its last trading day on the bourses with a loss of 0.6 per cent on the BSE. 

The broader indices, however, bucked the trend. The BSE MidCap and SmallCap indices were up 0.5 per cent each.  

Shares of online gaming were in focus after the government imposed 28 per cent GST. Delta Corp nose-dived nearly 28 per cent in intra-day deals, and finally ended 23.3 per cent lower. Nazara Technologies tumbled over 14 per cent in early deals, but eventually recouped losses and was down 3.2 per cent at close. READ MORE

Primary Market Update

Utkarsh Small Finance Bank IPO was subscribed 3.2 times as of 03:45 PM on Day 1 of the offer period. Retail portion received bids up to 10.5 times, HNIs (Non-institutional segment) 4.7 times and Employee 2.1 times. Most brokerages recommend ‘Subscribe’ rating on the IPO. Here’s why

 

4:14 PM

Tech View :: 'Dip towards 44,500 will present buying opportunity in Bank Nifty'

The bears continue to dominate the market, as the index broke below the support level of 44,800. This suggests a bearish sentiment in the index.The next support level on the downside is located at 44,500 levels. If the index dips towards this level, it may present an opportunity for traders to initiate long positions, expecting a potential bounce from this support.On the upside, the immediate hurdle is at 45,000, where the highest open interest is observed on the call side. This level may act as resistance for the index.

Views by: Kunal Shah, Senior Technical & Derivative analyst at LKP Securities

4:11 PM

Tech View :: 'Nifty is undergoing time wise correction'

The Nifty continued to trade within the range 19,300 – 19,550 for the seventh trading session. It closed ~55 points down. On the daily charts, we can observe that the Nifty is facing resistance in the zone 19,500 – 19,550, around the previous swing high. The hourly momentum indicator has triggered a negative crossover and is whipsawing on account of the sideways consolidation in the Nifty. Until we get a decisive close beyond the extremes of the range (19300 – 19550), we can expect the consolidation to continue.

The strategy to trade such a consolidation would be to take a contrarian view around the extremes of the range. In this case, we are approaching the lower boundary 19,300 and hence we should look out for a sign of strength around the support and go long. Overall, the trend is positive, and Nifty is undergoing time wise correction. Crucial support zone stands at 19,300 – 19,280 while the resistance zone is placed at 19,460 – 19,485.

 

As far as Bank Nifty is concerned, the Index continued to correct and traded in a downward sloping channel. It has now reached the lower end of that channel and also the  50% fibaonnci retracement level (44,600) which should attract buying interest. We expect the Bank Nifty to start recovering as it has now reached crucial support zone. On the upside initially we expect it to target 45,000.

Views by: Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas

4:08 PM

Comment :: 'Indications are in favor of further consolidation'

Indications are in favor of further consolidation in the index so participants have no option but to focus on stock-specific opportunities. The recent surge in the US markets is encouraging but we need sustainability of the move. Meanwhile, Nifty has been hovering within the 19,300-19,550 zone and either side break would offer cues over the next directional move. 

Views by: Ajit Mishra, SVP - Technical Research, Religare Broking

4:07 PM

COMMENT :: What all happened in the markets today?

The range-bound movement in the Indian indices was influenced by the likelihood of subdued IT earnings. While optimism about moderation in US inflation supported the broad index. Further, an uptick in domestic food inflation on the back of higher mandi prices trending above MSP and muted Kharif sowing forced the investors to be cautious. Monsoon progress and the Kharif sowing trend in July are the keys to the future inflation trend.

Views by: Vinod Nair, Head of Research at Geojit Financial Services.

4:00 PM

Q1 Earnings :: TCS reports net profit of Rs 11,074 crore

>> Revenue from operations rise to Rs 59,381 crore vs Rs 59,162 crore QoQ & Rs 52,758 crore YoY

>> The Board has declared an interim dividend of Rs 9 per Equity Share.  

>> The interim dividend shall be paid on Monday, August 7, 2023. Record date for the same has been fixed as July 20, 2023.

3:58 PM

Currency check :: Rupee ends at 82.25/$ against Tuesday’s close of 82.37/$

3:56 PM

Buzzing stocks :: Premier Explosives zooms over 40% in 2 days on Rs 552-cr order win

3:54 PM

Buzzing stock :: Waaree Renewable spurts 11%, zooms 8,500% in since 2021

3:50 PM

Buzzing stock :: HDFC ends 0.6% lower ahead of delisting on July 13

3:49 PM

Buzzing stock :: TCS ends flat ahead of June quarter results

3:47 PM

Buzzing stock :: HCL Tech down close to 1% ahead of Q1FY24 results

3:46 PM

Buzzing stock :: Nazara Tech falls 2.6% on 28% GST hit

Company clarifies :: This tax, once implemented, will apply only to the skill-based real money gaming segment of our business. The contribution of this segment to our overall consolidated revenues for the financial year FY23 was 5.2%.

The Company will proactively take steps to mitigate any potential impact to this segment of our business, and we anticipate minimal impact to our overall revenues.

3:44 PM

Buzzing stock :: Delta Corp tumbles 23% as Centre levies 28% GST on Casinos

3:42 PM

Broader market indices rise half a per cent each

3:41 PM

Nifty Losers :: Adani Ports, Infy drag the most on 50-share index