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Sensex drops 248 pts, Nifty gives up 11,900; IT, PSU banks weigh

In days to come, market will take cues from industrial production and inflation data.

, ETMarkets.com|
Dec 10, 2019, 04.02 PM IST
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BSE’s 30-share Sensex closed 0.61 per cent or 247.55 points lower at 40,239.88, while NSE’s 50-share Nifty dropped 0.68 per cent or 80.70 points to close at 11,856.80.
Mumbai: Benchmark equity index Sensex tumbled nearly 250 points on Tuesday, in sync with the subdued sentiment in world equities, as the market was nervous over progress in a US-China trade deal, which limited risk appetite.

In days to come, market will take cues from industrial production and inflation data on the domestic front, and the US-Sino trade relations on the global front.

BSE’s 30-share Sensex closed 0.61 per cent or 247.55 points lower at 40,239.88, while NSE’s 50-share Nifty dropped 0.68 per cent or 80.70 points to close at 11,856.80.

Markets at a glance:
Market breadth was in favour of the bears, as more than two shares declined for every share that advanced on the BSE.

All the sectoral indices closed in the red. Among sectoral indices, BSE Utilities Index and BSE Power index fell the most. They dropped 2.12 per cent and 1.82 per cent respectively.

Twenty-two of 30 Sensex stocks closed lower. Cigarettes-to-hotel firm ITC (50.86 points) contributed the most to Sensex’s decline, as it dropped 2.55 per cent. The country’s largest software services exporter Tata Consutancy Services (TCS) (44.80 points) followed next as it fell 2.13 per cent. YES Bank tumbled 10.32 per cent ahead of its crucial board meeting to decide on investment offers that the lender has received.

Shares of PC Jeweller hit an all-time low of Rs 22.25 in Tuesday's morning trade after it informed bourses that rating agency Crisil downgraded the long-term and short-term ratings to the bank loan facilities of the company to ‘CRISIL D’. The shares recovered some losses and closed 8.08 per cent lower at Rs 22.75.

Analysts’ views:
“After a Doji formation in earlier session, profit booking continues for the Nifty negating the Doji formation. Index has closed below the 20 Ema for the past few sessions. Near term upward momentum is fading out and a phase of correction/consolidation is setting in. market breadth was sharply negative indicating the overall mood on the street. Near term support is placed at 11,800, however, the stronger important support zone is placed at 11,700 which may get tested however, the support zone is likely to hold in the near term,” -- Manav Chopra, CMT, Head Research - Equity, Indiabulls Ventures

“Index (Nifty) has showed selling since morning and closed a day at with loss of points and formed bearish candle on daily chart. Now index has reached near good demand zone of 11,840-11,800 zone if managed to hold above said levels then we may see good recovery towards immediate hurdle of 11,950-12,000 zone. Overall index has formed a narrow range of 11,800-12,100 zone and traders can use buy on dip strategy near lower band of 11,800 zone,” -- Rohit Singre, Senior Technical Analyst at LKP Securities

Global markets:
Asian and European equity markets eased slightly as investors fretted over a December 15 deadline for the next round of US tariffs on Chinese imports to take effect, Reuters reported.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.17 per cent. The pan-regional STOXX 600 index was down 0.3 per cent at 0804 GMT.

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