 "Markets trip on China growth concerns; Nifty holds 7,550")
After hitting fresh 52-week lows intra-day, markets closed the first session of the week on a dismal note as Asian shares wobbled yet again today as growth concerns in China led to a sell-off in Chinese equities.
The upcoming third quarter earnings, which will kick-off from tomorrow as well as the announcement of key macro-economic data, has also put pressure on investors.
The S&P BSE Sensex ended 109 points at 24,825- its lowest closing level since June 4, 2014. The Nifty50 settled 37 points at 7,564- four month closing lows.
According to Ravi Shenoy, AVP-Research, Motilal Oswal Securities, "Automobile stocks were the favorites as earnings growth is expected to be strong on weak commodity prices and good demand. PSUs continued to be under pressure on asset quality concerns in the banking space and weak demand supply and hence 52-week low prices on the commodities front."
He further said, "Small and mid-cap stocks declined more than front-line indices with the market breadth negative at ~1500 declines for 1200 gainers. This does suggest some concern amongst retail investors as they have been more focused on this space than large-caps. The ferocity of the fall last week and global weakness is playing on investor psyche."
Among the key macro data, the industrial production for the month of November (IIP) as well as the consumer inflation for the month of December (CPI) will be announced later this week.
Oil prices resumed their downfall on persistent worries over the growth slowdown in China's economy and a supply glut but analysts said ongoing tensions between producer giants Iran and Saudi Arabia could provide some support.
Meanwhile, foreign portfolio investors (FPIs) sold shares to the tune of Rs 1,236.95 crore on Friday, as per provisional data released by the stock exchanges.
GLOBAL MARKETS
Asian stocks fell sharply today tracking another plunge in Chinese shares after the Shanghai Composite ended 5.3% lower amid sluggish inflation data last week and growth concerns in addition to the devaluation of the Yuan. Shanghai Composite ended down 5.3% while Hang Seng eased 2.7% and Straits Times ended down 2.1%. Meanwhile, Japanese markets were closed today on account of a holiday.
European markets have come off their lows and are trading in green. All the major indices are trading 0.2-1% higher each.
STOCKS IN FOCUS
Reliance Industries outperformed in a weak market and to some extent was responsible to limit the losses. Analyst at Sharekhan sees strong earnings traction in case of RIL, backed by an improvement in its gross refining margins (GRM) and the benefit of capex incurred in the petrochemical and refining businesses. The stock ended nearly 3% up.
Tata Motors was another stellar performer for the day. Its luxury arm- Jaguar Land Rover (JLR) achieved a record global sales in 2015 with the premium luxury vehicles' manufacturer retailing 4,87,065 vehicles, its highest figure yet and a five per cent increase from previous year. The stock finished 2.1% up.
Metal stocks ended mixed with Vedanta and Hindalco finished higher between 1-5% each while JindalSteel, JSW Steel, NMDC, Tata Steel ended 0.5-2% lower.
IT stocks finished lower as they will kick start their Q3FY (October-December) quarter results from current week. The sector giant Tata Consultancy Services (TCS) will unveil its numbers on January 12, while Infosys will release its on January 14. Among other peers, Wipro (down 3%), Tech Mahindra (3% down), HCL Technologies (1.5% down)
Banking and financial shares that are proxy to the economy ended majorly on the downside with only Axis Bank finishing in green. SBI, ICICI Bank, HDFC twins, 0.3-3% each.
Among other shares, Shares of Lanco Infratech jumped 3.4% after the company said its arm had started operations at Vijaywada unit.
Hyderabad-based Aurobindo Pharma said it has received final approval from the US Food and Drug Administration (USFDA) to manufacture and market Norethindrone Acetate tablets USP in 5 mg strengths. The stock ended finshed 1.4% lower.
Shares of Ashok Leyland ended nearly 2% up after the company announced that it has received an order from the Zimbabwe government.
