Sensex recoups 622-pt loss, ends 410 pts down; IT stocks worst hit

Negative global market cues and profit taking pushed both Sensex and Nifty lower for the first time in four days

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After a sharp selling pressure hit the benchmark indices in afternoon session, pushing them over 1 per cent lower, recovery was visible as investors lapped up stocks at lower levels. Negative global market cues and profit taking pushed both Sensex and Nifty lower for the first time in four days. Rise in US bond yield and crude oil price along with the Chinese crisis acted as key headwinds to the ongoing rally in the global market.

The BSE Sensex after hitting a low of 59,045 in intra-day deals bounced back, recouping over half of the losses. It finally settled the day at 59,668, down 410 points. The Nifty, meanwhile, tumbled 107 points to end at 17,749. In the 30-pack index, only nine stocks closed higher, led by Power Grid, NTPC, Sun Pharma and Titan. Whereas Bharti Airtel, Tech Mahindra, Bajaj Finance and Bajaj Finserv were the top losers.

The broader markets, too, declined in tandem with the benchmarks. The BSE Midcap index lost 0.71 per cent and the BSE Smallcap 0.62 per cent. The advance-decline ratio consequently worsened.

In the sectoral space, barring three indices, namely Nifty PSU Bank, Nifty Pharma and Nifty Metal, all ended in the red. Losses in realty index post a sharp rally were the steepest, down 3.02 per cent. Investors also booked profits in IT names ahead of the earnings season, pushing index 2.2 per cent lower. Media, financial and private banking stocks too suffered losses.

4:25 PM

Tech View :: Volatile moves between 17600-18000 likely

The market witnessed a correction and an attempt to hold the level around the Nifty 50 Index level of 17600. It suggests that 17550-17600 will be an important support zone for the market to stay positive in the short term. If the market is able to sustain the level of 17550-17600, it can witness higher levels of 18000. Technical indicator suggests, a volatile movement in the market in a small range between 17600-18000.

-- Ashis Biswas, Head of Technical Research at CapitalVia Global Research

4:24 PM

'Broader market sentiments remain soft'

Nifty ended in the red on Sept 28, falling the most in the past week, though it recovered some of its losses. Nifty after making a low at 17576, staged a smart recovery. In this process it filled the upgap formed on Sept 23. In case this recovery continues and is sustained over the next 1-2 days, then Nifty will still have a chance to touch 18000. Advance decline ratio continues to be in the negative, reflecting the broader soft sentiments. 17802-17819 is the resistance in the near term for the Nifty while 17580-17611 is the support.

-- Deepak Jasani, Head of Retail Research, HDFC Securities

4:22 PM

CLOSING COMMENTS :: S Ranganathan, Head of Research at LKP securities

Highly volatile trade witnessed today with significant swings on either side led by the IT & Oil & Gas Index. The PSE Index put up a stellar show today rising over 3% with power stocks making a smart up move. Despite the smart pullback from the lows of the day, declines were higher than advances in the broader market.

4:22 PM

MARKET QUOTE :: Vinod Nair, Head Of Research at Geojit Financial Services

Following negative global cues and profit booking in IT and realty sectors, the domestic market hit rough weather, however, it witnessed a rebound towards the closing. Rise in US bond yield and crude oil price along with the Chinese crisis acted as key headwinds to the ongoing rally in the global market. Amid broad-based selling in the domestic market, public sector, energy and metal stocks traded higher.

4:22 PM

Sun Pharma jumps 4% on new product launch

>> Sun Pharma launched Chericof 12 in India, a novel formulation that provides relief from cough for up to 12 hours

4:15 PM

IDBI Bank rallies 8% on credit rating upgrade

>> ICRA on Monday upgraded IDBI Bank's existing rating to ''ICRA A+'' from ''ICRA A'' for Infrastructure bonds, Flexi Bond, Senior & Lower Tier II bonds, Subordinate debt

>> The rating upgrade factors in the sustained improvement in the credit profile of IDBI Bank Limited with expectations that the internal capital generation is likely to be sufficient for growth as well as for maintaining sufficient cushion over the regulatory capital requirements.

4:12 PM

Antony Waste Handling Cell tanks 7% post block deal

>> 4.5 million shares of the company changed hands via block deal

>> Reports suggest a large PE fund exited its stake in the company

>> Total transaction valued at Rs 150 crore

4:07 PM

BHEL surges 6% on bagging order from Goa Shipyard for warship gun mount

>> Goa Shipyard has placed a maiden order on Bharat Heavy Electricals Limited (BHEL) for supply of an upgraded Super Rapid Gun Mount (SRGM), the Main gun onboard most Warships of the Indian Navy.