Tuesday, 15 November 2016

Sensex plunges 400 pts; Mid & Smallcap crack 4-5%, SBI zooms

Benchmark as well as broader markets extended losses. The Sensex was down 410.46 points or 1.53 percent at 26408.36, and the Nifty down 148 points or 1.78 percent at 8148.30. 

10:20 am Market Update: Benchmark as well as broader markets extended losses. The Sensex was down 410.46 points or 1.53 percent at 26408.36, and the Nifty down 148 points or 1.78 percent at 8148.30.

BSE Midcap tanked 3.9 percent and Smallcap crashed 4.8 percent. Jewellery stocks like Titan, PC Jeweller, Gitanjali Gems, TBZ and Thangamayil Jewellery shed 7-21 percent.

10:15 am FII View: Sakthi Siva of Credit Suisse says while foreign investors turned net sellers of Emerging Asia ex-China back in October, the pace has now accelerated.

While Taiwan and Korea accounted for two-thirds of last Friday's net foreign selling, she believes domestically driven markets on high price-to-book plus current account deficits are potentially more vulnerable. But this is still not yet capitulation, she says.

While such large foreign selling on a single day smacks of panic, she tends to use net foreign selling on a rolling 12-month basis as a sign of foreign investor capitulation.

However, this time around, net foreign buying in Emerging Asia ex China ex Malaysia is still running at 0.5 percent of market cap. Only Japan is associated with foreign investor capitulation, Siva says.

Also read - See big rally 3 months on, whatever the earnings: Tata MF's Jain 

10:00 am Market Check: Equity benchmarks remained under pressure with the Sensex shedding 343.46 points or 1.28 percent to 26475.36, weighed by auto, infra, metals and telecom. HDFC was the leading contributor to index fall, down 4.5 percent.

The 50-share NSE Nifty plunged 114.80 points or 1.38 percent to 8181.50 while the broader markets underperformed benchmarks. The BSE Midcap and Smallcap indices were down around 3 percent each.

About 7 shares declined for every share rising on the exchange.

Nifty PSU Bank index bucked the trend, up 3.6 percent on getting huge deposits, especially after Prime Minister Narendra Modi banned Rs 500 and Rs 1,000 notes. Union Bank, SBI, Andhra Bank, Bank of India, Canara Bank, OBC and PNB gained around 3 percent.

Bank of Baroda surged more than 8 percent after stellar performance in Q2.
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1 comment:

Geet Khare said...

* Impact of demonetization on economy and fear of rate hike in US were the major sentiment damper in the passing week. As a result, FIIs remained net sellers, which pushed the index closer to 8000 mark. capitalstars