Sensex down 273 points at closing, Nifty below 15,800

Our Bureau Mumbai | Updated on July 27, 2021

Pharma stocks under pressure, metals shine

Key benchmark indices Sensex and Nifty erased all the early gains to end lower on Tuesday. This was on the back of weak Asian markets and across the board profit-booking by traders.

The second day of a major sell-off in Chinese and Hong Kong stock markets spread nervousness in the global markets. The Chinese government is leading a crackdown on education and tech companies, and have even shut down many. This is weighing on the global market sentiments.

The BSE Sensex declined by 273.51 points or 0.52 per cent to close the day at 52,578.76. It hit an intraday high of 53,024 and a low of 52,433. The Nifty 50 index fell by 78.00 points or 0.49 per cent to 15,746.45. Its intraday high was 15,881.55 and low was 15,701.

Hang Seng and Sanghani Composite indices were down 4-5 per cent and declined the most in the global trade. US index futures including Dow Jones, S&P and Nasdaq were trading marginally lower by 0.2 to 0.4 per cent.

Decliners outnumber

In India, the market breadth was in favour of the declines with 1,673 stocks falling versus 1,590 gaining. About 111 stocks remained unchanged on the BSE. Another 504 stocks hit an upper circuit and 217 were locked in the lower circuit. 488 stocks were trading at their 52-week high level and 21 touched a 52-week low.

Binod Modi, Head Strategy at Reliance Securities said, “Domestic equities corrected sharply from day’s high as heavy profit booking in pharma weighed on benchmark indices. Additionally, financials and auto remained in selling pressure.”

“Further, global cues were also not supportive with Hang Seng contracting over 4 per cent today led by continued sell-off in Chinese tech stocks due to regulatory fears around Chinese companies,” added Modi. In his view, worries over the asset quality for some top banks and NBFCs post their first quarter FY 22 weighed on the index.

Hindalco, SBI Life, Tata Steel, Bajaj Finserv and State Bank of India were the top gainers in the Nifty 50 index. Dr Reddy, Cipla, Axis Bank, Adani Ports and Divi’s Lab were among the top laggards in the index. Dr Reddy share price corrected sharply today on its lower-than-expected financial performance as the company reported first quarter FY 2022 results.

The pharma major’s consolidated net profit decreased by one per cent, at ₹571 crore, in the first quarter ended June 30, compared to ₹579 crore in the corresponding quarter of the previous financial year. Its total revenue rose by 11 per cent at ₹4,919 crore as against ₹4,417 crore in the same quarter last year. Still the company’s stock fell by 10.31 per cent to close at ₹4,853.20 on NSE.

Metals shine

Nifty Pharma index was down 4.33 per cent at the closing. Nifty Auto and Nifty Realty were down 0.43 per cent and 0.73 per cent, respectively. Nifty Bank closed 0.44 per cent lower while Nifty Financial Services was down 0.28 per cent. Nifty Private Bank was down 0.85 per cent.

Nifty Metal index was up 1.46 per cent and Nifty PSU Bank index was up 0.38 per cent.

Broader indices

Profit-booking was extended to broader stocks as well.

Nifty Midcap 50 was down 0.70 per cent at closing. The S&P BSE Midcap was down 0.67 percent. S&P BSE Smallcap index was down 0.11 per cent. Nifty Smallcap 50 was the only index up 0.11 per cent. India VIX, NSE's volatility index rose by 6.28 per cent at 13.23.

Published on July 27, 2021

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