The benchmark key indices gave up the gains on the first day of the year ending in red on Wednesday as concerns over global growth and uncertainty ahead of general elections took centrestage.
The benchmark key indices gave up the gains on the first day of the year ending in red on Wednesday as concerns over global growth and uncertainty ahead of general elections took centrestage.
The BSE Sensex closed 363.05 points, or 1%, down at 35891.52, and the NSE Nifty ended 117.60 points, or 1.08%, lower at 10792.50, dragged mainly by losses in auto, metal and financial stocks.
All sectoral indices on BSE, except IT and teck, posted losses with metal and auto falling over 3%.
Shares of auto companies such as Eicher Motors, TVS Motor, M&M, Bharat Forge, Tata Motors and Maruti declined 2% to 9% over weak December vehicles sales data.
Metal stocks declined with the BSE metal index falling 3.45% as global base metal prices fell amid disappointing Chinese growth data. Consumer discretionary good & services fell 1.83%, basic materials fell 1.75% and utilities fell around 1.71%.
Sun Pharma, TCS, Asian Paints, Infosys, YES Bank and ICICI Bank were among the major gainers on the 30-stock Sensex, whereas Vedanta, Tata Steel, M&M, Tata Motors, Maruti and Hero MotoCorp were among the top losers. In global markets, the year started on a weak note, with stocks plunging across Europe and Asia after evidence of slowing Chinese growth dampened investors' sentiments.
Shares of IT companies, however, advanced as the rupee fell over 1% to below 70 against dollar.
According to Sahaj Agrawal, derivatives analyst, Kotak Securities, Nifty continues to consolidate in the range of 10400-11000. Selling pressure was seen on account of the fall seen in global markets.
"I expect the index to test 11000 levels back in the next few trading sessions and suggest using this correction as a buying opportunity. We expect the pace of the up-move to be slow but remain confident of a breakout of the trading range. We expect 10400 to be held and a meaningful rally to play out. IT and FMCG stocks trading with positive bias while metal and auto stocks to remain under pressure," he said.
Hemang Jani, head – advisory, Sharekhan by BNP Paribas, said that on the macro front the Nikkei Manufacturing PMI for December 2018 came at 53.2, pointing at manufacturing activity expanding at a slower pace in December. On the global front, Dow futures were trading lower by 300 points after weak economic data was released in China. According to him, in the near term, movement in crude oil, currency and Q3FY19 earnings, starting next week, will decide the trend of the market.
"For the year 2019, uncertainty over global events, direction of foreign funds and political stability along with the Union Budget in the domestic market to remain as major headwind," he said.
Factory worries
- Metal stocks declined with the BSE metal index falling 3.45% as global base metal prices fell amid disappointing Chinese growth data
- Consumer discretionary good & services fell 1.83%, basic materials fell 1.75% and utilities fell around 1.71%.
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Metal stocks declined with the BSE metal index falling 3.45% as global base metal prices fell amid disappointing Chinese growth data. Consumer discretionary good & services fell 1.83%, basic materials fell 1.75% and utilities fell around 1.71%.
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