Investor-anxiety over the ongoing quarterly results subdued Indian equity markets on Monday leading to a barometer index closing at a loss of 175 points or 0.65 percent.
Initially, both the Indian bellwether indices opened in the green on the back of positive Chinese markets. However, both soon ceded the gains as investors were spooked regarding uncertainty over the second quarter results.
Notwithstanding the downward trend, hopes of healthy macro data points on industry output and inflation later in the day somewhat arrested the fall.
The wider 50-scrip Nifty of the National Stock Exchange (NSE) closed in the negative territory. It was lower by 46.10 points or 0.56 percent at 8,143.60 points.
The barometer 30-scrip sensitive index (S&P Sensex) of the Bombay Stock Exchange (BSE), which opened at 27,242.60 points, closed at 26,904.11 points -- 175.40 points or 0.65 percent down from its previous close at 27,079.51 points.
The Sensex touched a high of 27,305.04 points and a low of 26,855.75 points during the intra-day trade.
The barometer index had closed with gains of 233.70 points or 0.87 percent on October 9, the last trading day.
Analysts pointed out that the markets closed in the red due to the uncertainty over the second quarter results, which they fear might turnout to be below expectations due to currency fluctuations and slowing demand scenario.
"Positive Chinese indices gave a steady opening to the markets here which made early gains," Anand James, co-head, technical research desk with Geojit BNP Paribas Financial Services, told IANS.
Asian markets closed on a positive note on Monday supported by a rally in the Chinese indices which were up three percent.
The Chinese central bank had announced a stimulus package over the weekend. The Chinese government has also indicated its intentions to initiate reforms in the telecommunication sector.
"However, the markets soon receded on the back of investors' anxiety over the quarterly results and rise in the oil prices which are expected to sustain," James said.
The results season was kicked off from October 5. Infosys was the first bluechip to come out with its results on Monday.
The global software major reported a net profit of Rs.3,398 crore for second quarter registering a 9.8 percent growth year-on-year (YoY) and 12 percent on a sequential basis.
"Apart from stock-specific action, the markets had no clear trigger on the possible government reforms. This has been a dampener. However, expectations of healthy macro numbers have stopped the markets from going into a free fall," James added.
The factory output data for August and inflation figures for September will be released on Monday evening. Both the key data points will give future guidance to the Reserve Bank of India's next move on lending rates.
Gaurav Jain, director with Hem Securities said that weak guidance by Infosys subdued the markets.
"Infosys weak guidance post its quarterly numbers spoiled the sentiment of the street," Jain said.
Nitasha Shankar, vice president, research with YES Securities, told IANS: "Metal and energy stocks continued to outperform. IT and pharma stocks remained weak throughout the trading session."
Sector-wise, information technology (IT), healthcare, technology, entertainment and media (Teck) and fast moving consumer goods (FMCG) stocks came under intense selling pressure.
However, metals, capital goods and automobile scrip managed to stay afloat.
The S&P BSE metals index increased by 102.92 points, capital goods index gained by 52.02 points and automobile index was higher by 40.66 points.
On the other hand, the S&P BSE IT index plunged by 239.73 points, healthcare index receded by 175.22 points, Teck index declined by 117.39 points and FMCG index was lower by 61.11 points.
Major Sensex gainers during Monday's trade were: Vedanta, up 7.00 percent at Rs.110.85; Hindalco Industries, up 5.98 percent at Rs.88.65; Gail, up 2.49 percent at Rs.319; Tata Motors, up 1.83 percent at Rs.362.40; and BHEL, up 1.76 percent at Rs.205.60.
The major Sensex losers were: Infosys down 3.88 percent at Rs.1,122.50; Lupin, down 2.16 percent at Rs.2,011.65; Cipla, down 1.71 percent at Rs.676.35; Sun Pharma, down 1.58 percent at Rs.892; and HDFC, down 1.44 percent at Rs.1,272.10.
