Private banks, capital goods, select metals and pharma stocks dragged the market.
The market lost half a percent on Thursday due to profit booking after seeing more than 300-point relief rally in previous session. Private banks, capital goods, select metals and pharma stocks dragged the market. Even weak earnings from Bajaj Auto and Lupin also dented sentiment. The 30-share BSE Sensex fell 134.09 points to 28370.84. The 50-share NSE Nifty closed below the 8600 level, down 43.70 points to 8589.80. About 1531 shares advanced against 1315 shares declined on the Bombay Stock Exchange. Experts see some consolidation in the market. They expect the market to hit 8100-8200 before seeing 9000 level. Saurabh Mukherjea of Ambit Capital said the market will find support as long as domestic flows are intact. Domestic investor sentiment is the most positive seen in last 3-4 years, he added. Meanwhile, the monsoon session of parliament continued to be a washout. Both houses adjourned for the day following ruckus over the Lalit Modi controversy. The opposition stuck to its demand seeking external affairs minister Sushma Swaraj's resignation. Lupin plunged more than 5 percent as its first quarter earnings missed expectations. Topline fell 5.7 percent and profit tanked 16 percent in June quarter compared to same quarter last year. The company acquired US generics firm Gavis for USD 880 million, saying the acquisition will be EPS accretive from the first year itself. Additionally, sources told CNBC-TV18 that US Food & Drug Administration has inspected Lupin's manufacturing unit in Goa last week and handed out Form 483 with 9 observations post inspection. The US drug regulator found observations related to cross contamination & free movement and stock locations & test records, sources said. Lupin's Goa unit makes formulations for supplies to US, EU and Japan. Bajaj Auto, too, disappointed street as the company's topline lagged estimates, growing just 6.8 percent in June quarter year-on-year. Profit rose 37 percent, boosted by other income. Average realisations during the quarter also declined 9.5 percent Q-o-Q to Rs 55,832 per unit. S Ravikumar, President, Business Development, Bajaj Auto said realisations would improve from here on and market share in the premium bike segment was likely to improve in the next quarter. Cairn India surged 6 percent after a media report indicated that Cairn Energy will vote against Vedanta's Cairn India offer. Brokerage CLSA said the rejection of merger may drive 50 percent upside in Cairn. Among others, shares of ICICI Bank, TCS, L&T, HUL, Axis Bank (ahead of Q1 earnings), Bharti Airtel and Tata Steel were down 1-3.6 percent. However, Tata Motors bucked the trend, up 3 percent followed by Dr Reddy's Labs, M&M and Maruti Suzuki with 1-1.6 percent upside. Eicher Motors lost 3 percent post downgrades by a few brokerages. Deutsche Bank downgraded the stock to hold while Goldman Sachs removed it from Asia Pacific buy list.
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The market lost half a percent on Thursday due to profit booking after seeing more than 300-point relief rally in previous session. Private banks, capital goods, select metals and pharma stocks dragged the market. Even weak earnings from Bajaj Auto and Lupin also dented sentiment. The 30-share BSE Sensex fell 134.09 points to 28370.84. The 50-share NSE Nifty closed below the 8600 level, down 43.70 points to 8589.80. About 1531 shares advanced against 1315 shares declined on the Bombay Stock Exchange. Experts see some consolidation in the market. They expect the market to hit 8100-8200 before seeing 9000 level. Saurabh Mukherjea of Ambit Capital said the market will find support as long as domestic flows are intact. Domestic investor sentiment is the most positive seen in last 3-4 years, he added. Meanwhile, the monsoon session of parliament continued to be a washout. Both houses adjourned for the day following ruckus over the Lalit Modi controversy. The opposition stuck to its demand seeking external affairs minister Sushma Swaraj's resignation. Lupin plunged more than 5 percent as its first quarter earnings missed expectations. Topline fell 5.7 percent and profit tanked 16 percent in June quarter compared to same quarter last year. The company acquired US generics firm Gavis for USD 880 million, saying the acquisition will be EPS accretive from the first year itself. Additionally, sources told CNBC-TV18 that US Food & Drug Administration has inspected Lupin's manufacturing unit in Goa last week and handed out Form 483 with 9 observations post inspection. The US drug regulator found observations related to cross contamination & free movement and stock locations & test records, sources said. Lupin's Goa unit makes formulations for supplies to US, EU and Japan. Bajaj Auto, too, disappointed street as the company's topline lagged estimates, growing just 6.8 percent in June quarter year-on-year. Profit rose 37 percent, boosted by other income. Average realisations during the quarter also declined 9.5 percent Q-o-Q to Rs 55,832 per unit. S Ravikumar, President, Business Development, Bajaj Auto said realisations would improve from here on and market share in the premium bike segment was likely to improve in the next quarter. Cairn India surged 6 percent after a media report indicated that Cairn Energy will vote against Vedanta's Cairn India offer. Brokerage CLSA said the rejection of merger may drive 50 percent upside in Cairn. Among others, shares of ICICI Bank, TCS, L&T, HUL, Axis Bank (ahead of Q1 earnings), Bharti Airtel and Tata Steel were down 1-3.6 percent. However, Tata Motors bucked the trend, up 3 percent followed by Dr Reddy's Labs, M&M and Maruti Suzuki with 1-1.6 percent upside. Eicher Motors lost 3 percent post downgrades by a few brokerages. Deutsche Bank downgraded the stock to hold while Goldman Sachs removed it from Asia Pacific buy list.
For More Detail Visit Our SIte -- http://www.allianceresearch.in/
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