RIL, HDFC twins drag Sensex 344 pts; Nifty sheds 8% in October series

RIL, HDFC twins drag Sensex 344 pts; Nifty sheds 8% in October series
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Mumbai, Oct 25: The market erased all its previous day’s gains on Thursday with the Nifty closing the last session of October series on a negative note. Weak global cues, muted domestic sentiments and sell-off in index heavyweights Reliance Industries and HDFC Group stocks pulled the market sharply lower.
The 30-share BSE Sensex lost 481 points intraday, but the positive European cues helped it cut some losses and Nifty end above 10,100 levels.
The Sensex was down 343.87 points or 1.01 percent to close at 33,690.09 and the Nifty shed 99.90 points or 0.98 percent to 10,124.90.
In the October series, the Nifty plunged nearly 8 percent and the Sensex dipped 7.25 percent amid crude & rupee volatility, NBFCs liquidity crisis and tepid earnings season.
“We maintain our cautious view on the Indian markets in the near term. While there could be some intermediate bounces, selling pressure could resume at higher levels,” Jayant Manglik, President, Religare Broking said.
He said the movement of crude oil prices, currency and global developments would be closely monitored in the coming sessions. Domestically, the corporate earnings season so far has not been encouraging, he added.
With more results likely to be announced over the next two weeks, stock specific volatility would continue to remain high, he feels. Hence, he advised traders & investors to remain selective in stock picking.
The broader markets, which underperformed during the day, managed to recoup more than half of losses in late trade and outperformed frontline indices. The Nifty Midcap index lost 0.6 percent. About two shares declined for every share rising on the NSE.
Broad based selling was seen across the sectors with Nifty Realty, Metals, Pharma, Bank and Auto being the top losers, down between 1-2 percent. But technology stocks bucked the trend as the Nifty IT index gained 0.15 percent.
Indiabulls Housing Finance was the biggest loser among Nifty50 stocks, down 7 percent while Bharti Airtel plunged 6.4 percent ahead of second quarter earnings due later in the day.
HDFC (down 2.7 percent), Reliance Industries (1.43 percent), HDFC Bank (1.18 percent), Vedanta (3.5 percent) and SBI (2.41 percent) were leading contributors to the Nifty’s fall.
Wipro was the biggest gainer, rising 3 percent after second quarter earnings performance. IOC, HCL Technologies, Bajaj Finance, Kotak Mahindra Bank, Asian Paints and Coal India were other gainers.
Globally, the Asian markets ended sharply lower following a negative lead from Wall Street overnight. Japan’s Nikkei lost 3.7 percent, Hong Kong’s Hang Seng was down 1 percent and South Korea’s Kospi fell 1.6 percent.
European indices traded in the green at the time of writing this article. France’s CAC was up 1.4 percent and Germany’s DAX gained 0.4 percent.