The benchmark Nifty got badly bruised by 111.35 points to settle at 5,751.90. Deven Choksey, KR Choksey Securities is not hopeful that markets will hold strong levels. According to him, the pullback was never going to last because it lacked fresh buying. “Unless we find fresh buying taking place in the market, we cannot have the confidence of market going up."
He added that 5,700 is a very significant support level for the Nifty. “If it breaks that, then that could invite further selling pressure,” he stressed.
India's second largest IT services exporter Infosys Technologies reported 2.48% growth in Q3FY11 net profit of Rs 1,780 crore and revenues grew by just 2.3% at Rs 7,106 crore as against expectations of Rs 1,814.69 crore & Rs 7,200.07 crore, respectively. Explaining the rationale behind the disappointing numbers, the management said that seasonality led to lower volume growth in the third quarter. The BSE IT Index crashed 3.41%; Infosys tanked 5.1% and Wipro was down 3%. HCL Tech fell 2.5% and TCS lost 1%.
The weaker economic outlook in developed markets coupled with high unemployment and risk of sovereign default could impact industry growth, says S Gopalakrishnan, CEO & MD of Infosys.
Though the third quarter results came in as disappointing, Srishti Anand, IT Analyst, Angel Stock Broking sees strong numbers going ahead from Infosys. Infosys’ FY11 earnings per share would be close to Rs 121 and FY12 EPS would be upwards of Rs 145 per share, she said. "Management has spoken about a very aggressive hiring strategy of close to 26,000 campus offers with a huge conversion rate of 70%. As well as 25,000 lateral. So, I am talking about more than 40,000 net additions, on probably the base of 1.6 or something, which translates into strong growth for FY12 close to 25% plus. So, I am really comfortable and the guidance looks pretty promising that way."
In actual today's fall was led by financials with a loss of 3.5% in BSE Bankex on profit booking. ICICI Bank, SBI and Kotak Mahindra Bank plunged 4% each; PNB plummeted 4.9%. Axis Bank, IDFC and HDFC were down 2-3.8%.
The 30-share BSE Sensex plunged 351.28 points or 1.80% to close at 19,182.82. Nilesh Shah of Envision Capital said the start to 2011 has been pretty shaky. "That’s driven by several factors including inflation and interest rates hardening." "The market is going to look forward the earnings season because that is going to be very critical as to what is going to be the likely impact of a lot of these macroeconomic variables on corporate earnings," he added.
However, he felt, as long as 5,750 holds, the downside should be limited for the Nifty. "So far level of 5,750 has been an important level which it has by and large found support in the months of November, December and January. From a pure short-term perspective, as long as those levels are maintained, the downside risk to the market could be pretty limited."
Heavyweight Reliance Industries tumbled 1.5% while ONGC gained 1.25%. The BSE Metal Index lost over 1% - SAIL, Jindal Steel, Tata Steel, Hindalco and Sesa Goa declined 1.4-2.66%.
Hero Honda and M&M from auto pack slipped 1.8-2.6% while Tata Motors rose 1.5%. DLF from realty segment too gained 0.6%. Cement companies' shares also outperformed other largecaps; Ambuja Cements rallied 3% and ACC went up 1%.
In power space, NTPC, Reliance Infrastructure, Suzlon, Power Grid, Tata Power and Reliance Power were down 0.5-1.77%. L&T, BHEL and Siemens from capital goods pack slipped 0.4-0.7%. Bharti Airtel from telecom pack went down 0.7%.
Broader indices too fell; the BSE Midcap Index was down 0.8% and Smallcap down 0.65%.
In midcap space, Glodyne Tech, Dewan Housing, City Union Bank, Manappuram and Jubilant Foodworks gained 3-6% whereas Godfrey Phillip, JSW Holdings, Kalpataru Power, Techno Electric and Kirloskar Oil lost 4.4-4.9%.
In smallcap space, Sahara One, AP Paper Mills, Venkys, Everonn Education and Lumax Inds were up 5-8.8% while Zenith Infotech, A.K.Capital, Reliance Broadcast, Praj Industries and Rane Holdings fell 5.6-13.5%.
About 1124 shares advanced as against 1756 shares declined on Bombay Stock Exchange.
Total traded turnover on exchanges stood at Rs 1,70,270.6 crore. This included Rs 14,142.99 crore from NSE cash segment, Rs 1,52,571.83 crore from NSE F&O and the rest of Rs 3,555.78 crore from BSE cash segment.
At 14:45 hours IST - gains made by the benchmark Nifty yesterday washed out completely in today's trade, led by profit booking in financials. Infosys was the leading dragger with nearly 5% fall, followed by heavyweights like Reliance Industries, NTPC, Wipro and TCS.
Healthcare, FMCG, capital goods, power, select auto and metal companies' shares were other losers in trade. However, ONGC, Tata Motors, DLF, Ambuja Cements, ACC, Sterlite, Cairn and Bajaj Auto were only gainers.
Traders were doing some short covering as well as there was cash based buying at lower levels, which helped the markets to show a bit of recovery from day's low. The 30-share BSE Sensex was trading at 19,246, down 287 points and the 50-share NSE Nifty tanked 95 points at 5,767, after recovery of over 20 points from day's low of 5744.35.
IT bellwether Infosys was down nearly 5% on huge volumes. It was the most active share on exchanges as well. Its Q3FY11 numbers were quite disappointing - it has reported 2.48% growth in net profit to Rs 1,780 crore over previous quarter as against expectation of Rs 1,814.69 crore.
Bankex cracked 3%, as SBI, ICICI Bank, HDFC Bank, PNB, Axis Bank, Kotak Mahindra Bank and IDFC were down 2.5-4%.
In midcap space, Dewan Housing, Ispat Industries, Jubilant Foodworks, Money Matters and Manappuram were up 3.5-4.6 while Amtek Auto, Godfrey Phillip, Kirloskar Oil, Indiabulls Financial and UCO Bank lost 3.7-5%.
In smallcap space, AP Paper Mills, Simplex Project, Venkys, Hindustan Motors and Sahara One rallied 6.7-10.4% whereas Zenith Infotech, A.K.Capital, Reliance Broadcast, Bheema Cements and SVC Resources fell 5-11%.
At 13:07 hours IST - equity benchmarks wiped out all their yesterday's gains, pulled down by banking, technology, healthcare, FMCG and infrastructure companies' shares along with heavyweight Reliance Industries. The Nifty dropped below 5800 level - shed 108 points to 5,754.
About 42 shares advanced as against eight shares declined on S&P CNX Nifty. All sectoral indices were in red; IT and Bankex led this downtrend with fall of nearly 3%.
India's largest lenders SBI, ICICI Bank, HDFC Bank, PNB and Axis Bank plunged 3-3.5%. Country's second largest IT services exporter Infosys tumbled 4.5% on the back of disappointing numbers in Q3FY11. Wipro and TCS were also down 1-1.5%.
Infosys has reported 2.48% growth in net profit to Rs 1,780 crore over previous quarter as against expectation of Rs 1,814.69 crore.
The 30-share BSE Sensex slipped 337 points to 19,197. However, broader indices were marginally in red.
Among other heavyweights, Reliance Industries, NTPC, L&T, ITC, HUL and Bharti Airtel were down 1-1.5%.
State-run SAIL is going to declare its December quarter results today - the stock dipped 2.5%. Jindal Steel, Tata Steel, Sesa Goa and Hindalco tumbled 1.4-2.2%.
Sun Pharma, Dr Reddy's Labs, Ranbaxy Labs and Cipla from healthcare segment slipped 1-1.7%. Hero Honda, M&M and Maruti from auto pack were down 0.65-2.2% while Tata Motors rose 0.6%.
ONGC, Ambuja Cements, Reliance Communications, ACC and DLF were only gainers on Nifty.
In midcap space, Jubilant Foodworks, City Union Bank, Manappuram, Dewan Housing and Ispat Industries gained 3-4.4% whereas Shree Renuka, Anant Raj Industries, IOB, Godfrey Phillip and Whirlpool lost 3.6-4%.
In smallcap space, AP Paper Mills, Everonn Education, Hindustan Motors, Falcon Tyres and Kiri Dyes Chemical rallied 5.9-9.4% while Zenith Infotech, Bheema Cements, SVC Resources, LS Industries and Spectacle Info fell 5-8%.
Nifty below 5850; Infosys, SBI, ICICI Bank, HDFC Bank slip
At 12:25 hours IST - the benchmark Nifty was consistently witnessing selling pressure and was not able to cross 5850 level - in fact it was in narrow range of 5810-5850 since morning. Financial, healthcare and select metal companies' shares along with heavyweight Infosys were putting pressure on markets.
However, Anil Dhirubhai Ambani Group, cement and oil & gas companies' shares along with TCS, Wipro, Tata Motors, DLF, Sterlite, Bajaj Auto and Tata Power were on buyers' radar, which were quite supportive.
Nilesh Shah of Envision Capital said the start to 2011 has been pretty shaky. "That’s driven by several factors including inflation and interest rates hardening." "The market is going to look forward the earnings season because that is going to be very critical as to what is going to be the likely impact of a lot of these macroeconomic variables on corporate earnings," he added.
The 30-share BSE Sensex was down 198.47 points or 1.02% at 19335.63, and the Nifty was down 63.60 points or 1.08% at 5799.65. About 1398 shares advanced, 1219 shares declined, and 637 shares remain unchanged.
IT bellwether Infosys was down over 4% on huge volumes. It was the most active share on exchanges as well. Its Q3FY11 numbers were quite disappointing - it has reported 2.48% growth in net profit to Rs 1,780 crore over previous quarter as expectation of Rs 1,814.69 crore. The stock dragged the IT Index by 2%. However, TCS and Wipro were up 0.8% & 0.25%, respectively.
In financial space, SBI, ICICI Bank and PNB tanked 2% each. Axis Bank and HDFC Bank were down 1.6% each. Dr Reddy's Labs, Ranbaxy, Cipla and Sun Pharma from healthcare pack 0.4-1.7%.
Tata Steel was down 1.4% and SAIL down 1.92%.
However, Reliance Communications, Tata Motors, ONGC, DLF, Reliance Infrastructure, Ambuja Cements and ACC gained 1.3-3.6%
ICICI Bank, Infosys, SBI, Tata Steel, Adani Enterprises, Tata Motors and YES Bank were most active shares on exchanges.
In midcap space, Jubilant Foodworks, City Union Bank, Money Matters, Ispat Industries and Manappuram gained 3.5-4.7% while Godfrey Phillip, IOB, Indiabulls Financial, Kirloskar Oil and Shree Renuka lost 2.6-3%.
In smallcap space, AP Paper Mills, Falcon Tyres, Hindustan Motors, Binani Ind and Venkys rose 7-10.7% whereas Bheema Cements, SVC Resources, Spectacle Info, LS Industries and A.K.Capital Services tanked 5%.
Sensex southbound amid volatility; TCS, ONGC, Wipro up
At 11:08 hours IST - equity benchmarks extended losses on the back of further sell-off in IT bellwether Infosys' shares followed by financial and healthcare companies' shares. NTPC, ITC, BHEL, Tata Steel, Hero Honda and Bharti Airtel also added more pressure on markets. The Nifty was hovering in a range of 5810-5850 level along with volatility.
However, the support was led by cement, realty and Anil Dhirubhai Ambani Group (ADAG) companies' shares along with ONGC, TCS, Wipro, Tata Motors, Sterlite, L&T and Bajaj Auto.
India's second largest IT services exporter Infosys has reported 2.48% growth in net profit to Rs 1,780 crore over previous quarter, which was quite disappointing for the markets. CNBC-TV18 was expecting net profit at Rs 1,814.69 crore. Infosys plunged over 4%, which drag the IT Index by 2%. However, TCS and Wipro rose 0.9% each.
Explaining the rationale behind the disappointing numbers, the Infosys management said that seasonality led to lower volume growth in the third quarter.
Moshe Katri, MD, Cowen & Co says, Q3 is a seasonally weak quarter. According to him, expectations have to be tempered down. “We have a lot of people that are very excited and very upbeat about the sector, which is not wrong, but I think expectations have to be tempered down.”
The 30-share BSE Sensex was trading at 19,440, down 94 points and the 50-share NSE Nifty fell 31 points to 5,832. However, the market breadth was slightly in favour of advances; about 775 shares advanced as against 443 shares declined on National Stock Exchange. The broader indices were up 0.4-0.6%.
Dhiraj Agarwal, Standard Chartered Capital Markets says, index performance is likely to be at 10-15% in 2011. However, he is concerned that inflation and interest rates are key challenges for markets.
Among frontliners, Ambuja Cements rallied 4.12%. Reliance Communications, Jaiprakash Associates, Bajaj Auto, Reliance Infrastructure, Tata Motors and ACC gained 1.2-2.5%.
However, ICICI Bank, Jindal Steel, HDFC Bank, Hero Honda, Dr Reddy's Labs and BPCL fell 1-2%.
In midcap space, BF Utilities, Jubilant Foodworks, A2Z Maintenance, Money Matters and Dewan Housing rallied 3.9-5.5% while Indiabulls Financial, Kirloskar Oil, Godfrey Phillip, United Bank and Shree Renuka fell 2-2.7%.
In smallcap space, Venkys, Everonn Education, Kalyani Steels, Kiri Dyes Chemical and KRBL surged 6.5-8.5% while Bheema Cements, Sujana Towers, Binny, SVC Resources and Spectacle Info lost 5% each.
Nifty retreats on disappointing Infosys Q3 nos
The benchmark Nifty retreated a bit in opening trade today, led by disappointing numbers from IT bellwether Infosys and profit booking in financial stocks. There was small bouts of volatility as well as markets outperformed global markets on Wednesday with 1.9% gain.
India's second largest IT services exporter Infosys Technologies has reported consolidated net profit at Rs 1,780 crore and revenues at Rs 7,106 crore, growth of 2.48% & 2.29%, respectively on quarter-on-quarter basis. Numbers were below markets' expectations. CNBC-TV18 was expecting net profit at Rs 1,814.69 crore and revenues at Rs 7,200.07 crore.
Infosys tanked 3% followed by TCS, HCL Tech and Wipro with fall of 1.5-2.4%. The BSE IT Index plunged 2.5%.
Among frontliners, ONGC, ICICI Bank, SBI, PNB, Suzlon Energy, Hero Honda, M&M, Hindalco and Tata Steel
However, Kotak Mahindra Bank, Cairn, GAIL, Reliance Industries, SAIL (ahead of numbers today) and Bajaj Auto were on buyers' radar.
At 9:16 hours IST, the 50-share NSE Nifty declined 20 points to 5,843 and the 30-share BSE Sensex fell 79 points to 19,454.
However, the CNX Midcap rose just 8 points to 8,385; about 519 shares advanced as against 323 shares declined on National Stock Exchange.
Midcap & Smallcap space:
Polaris was down 1.7%. Yes Bank and UCO Bank were also down over 1%.
However, HCC rose 2.7%. Alok Industries and Delta Corp were up 1.4%. PVP Ventures shot up 6.7% and KRBL rose 8.5%.
Global cues:
Asian markets were marginally in green. Nikkei was up 0.5% and Hang Seng up 0.7%.
Fed’s Beige book showed the nation's economy strengthened at the end of the year. The Dow Jones Industrial Average ended up 84 points at 11755. The Nasdaq Composite was up 20.5 points at 2737 and S&P 500 Index rose 11.5 points at 1286.
Commodities
Natural gas was up 0.9% at USD 4.52 per MMBtu
February crude oil contract was up 0.8% at USD 91.86/barrel
February gold contract went up 0.1% at USD 1385.8/ounce
March silver contract gained 0.1% at USD 29.55/ounce
Agriculture commodities: Grains rose 3.2%, soybeans surged 4.5% and corn gained 4.3%
F&O cues:
Total Nifty futures up Rs 1857 crore, Options up Rs 1525 crore
Stock futures net add 1.27 crore shares in Open Int
Nifty Fut Open Int net add 6.5 lakh shares in Open Int; Nifty futures prem down to 11 pts versus 15 pts
Nifty Open Int PCR up at 1.01 versus 0.95
Nifty Put add 35 lakh shares in Open Int, Call shed 11.3 shares in Open Int
Highest Open Int outstanding on call side at 6200 call, 6100 call; highest Open Int on put side at 5600 Put
Nifty 5600 Call adds 13.7 lakh shares in Open Int; prem down from 38 to 23
Nifty Feb 5600 Put adds 5.3 lakh shares in Open Int; prem down from 92 to 65
Nifty Feb 5500 Put add 3.6 lakh shares in Open Int
Nifty 5400 Put adds 3.2 lakh shares in Open Int
Nifty Feb 6000 Call add 3.12 lakh shares in Open Int
Nifty 5900 call sheds 9.4 lakh shares in Open Int
Nifty 5800 Call sheds 7.6 lakh shares in Open Int
