Sensex dips 155 pts as record Covid cases weigh on indices; pharma stks up

Trends in the broader markets were mixed as the S&P BSE SmallCap index closed 0.7 per cent higher while the S&P BSE MidCap index dipped 0.07 per cent.

MARKET LIVE: Sensex falls 100 points; broader indices outperform

Stock market updates:Snapping their 3-day winning streak, domestic equity markets traded range-bound in the negative territory on Friday, with a few episodes of gains. Amid mixed global cues and record Covid-19 cases back home, coupled with reports of vaccine supply crunch, the benchmark indices dropped 0.3 per cent today.

Among headline indices, the S&P BSE Sensex ended the day at 49,591 level, down 155 points. 50 per cent of the constituents ended the day in the red with Bajaj Finance (down 3 per cent), Ultratech Cement, NTPC, ICICI Bank, Axis Bank, IndusInd Bank, and Reliance Industries leading the list of losers. On the upside, Sun Pharma, HUL, Tech Mahindra, Titan Company, Dr Reddy's Labs, and HCL Tech were the top gainers on the index, up in the range of 1 per cent to 3.5 per cent.

On the NSE, the 50-share barometer settled at 14,835 levels, down 39 points dragged down by UPL, Tata Steel, Coal India, and Axis Bank.

Trends in the broader markets were mixed as the S&P BSE SmallCap index closed 0.7 per cent higher while the S&P BSE MidCap index dipped 0.07 per cent.

The SmallCap index hit fresh record peak of 21,667, for second day in a row on the back of gains in Srei Infra, Butterfly Gandhimathi, Kilitch Drugs, Subex, Bank of Maharashtra, Aarti Surfactants, Vimta Labs, and Sasken Technologies.

Among individual stocks, shares of Srei Infrastructure Finance Limited hit 20 per cent upper circuit at Rs 7.02 on the BSE after its subsidiary Srei Equipment Finance Limited said it has received expression of interest for up to $250 million capital infusion in the company from international private equity (PE) funds. READ MORE

Those of Khadim India, meanwhile, extended their winning run to the fourth day in a row and jumped over 7 per cent in the intra-day trade to hit a high of Rs 159 on the BSE following a change in the credit rating of the company by rating agency ICRA. The agency has revised long term credit rating on the company's overall borrowings of Rs 204 crore to BBB- from BBB, although, it tweaked the outlook to 'Stable' from 'Negative'. READ MORE

Shares of Zensar Technologies too extended gains to the third straight day on Friday and climbed nearly 6 per cent after the company announced a strategic partnership with US-based Claimatic. Following this development, the stock of Zensar Technologies jumped 5.70 per cent on the BSE in intra-day trade to touch a high of Rs 290. READ MORE

Sectorally, investors appeared to be defensive with the Nifty Pharma index ending over 3 per cent up. The Nifty IT and FMCG indices, meanwhile, settled 0.8 per cent higher each.

Shares of PSU Banks too outperformed at the bourses with Bank of Maharashtra skyrocketing 15 per cent on the National Stock Exchange (NSE) in the intra-day trade while Indian Overseas Bank surged 12 per cent, and Central Bank of India jumped 10 per cent after a Buisness Standard report said senior officials of the Niti Aayog, the Reserve Bank of India (RBI), and the finance ministry’s financial services and economic affairs departments are set to meet on April 14 (Wednesday) to discuss the potential candidates for privatisation. The index closed 2 per cent higher today after ralling 5 per cent in the early morning deals.

On the downside, the Nifty Bank, Private Bank, and Auto indices slipped up to 1 per cent.

Global markets

MSCI’s broadest gauge of world stocks set a record high in Asian trading, though it was down 0.1 per cent by close. In Asia, Japan’s Topix gained 0.6 per cent and Australian stocks hovered near a 13-month high, while South Korea’s Kospi touched the highest intraday level since mid-February.

Chinese shares, however, slid 1.5 per cent, as robust domestic inflation data raised worries over policy tightening.

European stocks were subdued on Friday, but on course for their longest weekly winning streak since November 2019. The pan-European STOXX 600 index was flat after hitting an all-time high at the open, while UK’s blue-chip FTSE 100 and Germany’s DAX slipped 0.4 per cent and 0.2 per cent, respectively.

(With inputs from Reuters)

4:26 PM

TECH VIEW :: Ashis Biswas, Head of Technical Research at CapitalVia Global Research

The market witnessed a lackluster trend to continue and an attempt to overcome the resistance level around the Nifty 50 Index level of 14900. While a breakout above 14900 is the key factor from a short-term perspective, Anything above this level market to gain momentum, that could lead to an upside projection till 15300 levels. The momentum indicators like RSI, MACD to further strengthen in favor of a positive outlook and advise the traders to consider a breakout above 14900 as an opportunity to build fresh long.

4:21 PM

MARKET CLOSING COMMENT :: Deepak Jasani, Head of Retail Research at HDFC Securities

Indian benchmark equity indices ended the final trading session of the week on April 09 on a negative note after a three-day gaining streak. Nifty made an intra day high at 1005 hours and gradually fell during the day though in a narrow range. At close the NSE Nifty 50 index, shed 0.26% or 38.9 points to end at 14,834.9. For the week, the Nifty closed 0.2% lower

Volumes on the NSE were in line with recent averages. Among sectors, Pharma, Media and FMCG rose the most, while Banks and Metals fell the most. The Nifty Midcap index gained 0.2% while the Smallcap index rose 0.5% at the close of trade.

Nifty has formed a mild bearish engulfing pattern on daily charts after a doji. This suggests hesitation on the part of traders to go all out on long side at these levels. However the broader market continues to perform well and sectoral rotation gives traders enough opportunities to trade. On upmoves, 14984-15050 continues to be a resistance while 14687-14737 on the downside could provide support.

4:13 PM

MARKET CLOSING COMMENT :: Vinod Nair, Head of Research at Geojit Financial Services

Domestic markets traded in a mild negative territory following weak global cues and increasing covid cases. Fall in the market was led by the private banks as concerns on the bank's asset quality spiked with increasing restrictions across states. Buying interest was seen in PSU Banks in hopes of finalisation of potential privatisation candidates. On the sectoral front, pharma stocks were the top gainers while broader markets continued to perform well

4:04 PM

TECH VIEW :: Rohit Singre, Senior Technical Analyst at LKP Securities

Index witnessed a strong volatile week and closed a week at 14837 with minimal loss on weekly front & formed a Doji candle pattern on weekly chart which represents indecision in the markets. The index failed to sustain above 14900 zone which means on the immediate basis index has good resistance at 14900-15000 zone and trading below said levels may show some pressure from every rise, good support is still placed at 14700-14600 zone

3:58 PM

MARKET RECAP :: S Ranganathan, Head of Research at LKP Securities

Yet again today we witnessed a day when all the action were in the broader market with Pharmaceuticals doing well. Provisional data on direct tax collections for the last fiscal kept sentiments buoyant in select FMCG stocks

3:52 PM