NEW DELHI: Indian equity benchmarks extended losses for a second consecutive session on Friday despite bullish global cues.
Losses in heavyweights, including IndusInd Bank, TCS, Reliance Industries, Larsen & Toubro and ICICI Bank dragged Sensex, while an uptick in global crude oil prices and rupee’s weakness against the US dollar hit sentiment further.
Investors restricted their bets as global cues have not been able to offer a clear direction, whereas December quarter earnings so far have not been able to infuse positivity in the market.
“Market is not able to take a directional cue overall from the global markets. Earnings so far is decent but not very exciting,” said Pankaj Pandey, Head of Research at ICICI Securities.
The concerns of a slowdown in the global economy remains an overhang amid all the euphoria over US-China trade talks and Fed’s milder tone about future rate hikes.
Sensex fell for 97 points, or 0.27 per cent, to 36,009.84, whereas Nifty shut shop at 10,794.95, with a loss of 27 points or 0.25 per cent.
On a weekly basis, Sensex advanced by 315 points or 0.88 per cent and Nifty inched up by 68 points or 0.63 per cent.
Let’s take a look at highlights of Friday’s session:
TCS shares slip on weak Q3 margins
Analysts have raised concerns over sequential weakening of margins due to higher subcontracting cost. The 26-28 per cent margin band will be elusive for a while, they said, adding that a likely slowdown in the US could bite revenue growth, going ahead. Margins for the quarter under review fell 90 basis points to 25.60 per cent on a sequential basis. Shares of the company finished at Rs 1,841.95 on BSE, down 2.45 per cent.
Praj Industries hits 52-week high
Shares of Praj Industries touched its 52-week high of Rs 161.50 before settling at Rs 151.80, with a gain of 10.24 per cent. Shares of the company got traction after it announced the ground-breaking of integrated demo plant of compressed bio-Gas (CBG). Besides, the company said it was on track with the execution of three bio-refinery projects based on proprietary 2G technology.
Karnataka Bank’s Q3 net jumps 61%
Karnataka Bank reported a 60.7 per cent jump in net profit at Rs 140.41 crore for the third quarter on account of higher interest income. The gross non-performing asset (GNPA) of the bank rose to 4.45 per cent of assets from 3.96 per cent in the year-ago period. Shares of the company closed 0.61 per cent up at Rs 115.95.
Reliance slips on shutting of two plants
Shares of RIL slipped 0.70 per cent to Rs 1,097.90 after it said it was planning to shut two units of its Jamnagar refinery in Gujarat for routine maintenance. As per a regulatory filing, the company is planning to shut down one of the crude distillation units (CDUs) and coker unit of its domestic tariff area (DTA) refinery at Jamnagar for routine maintenance and inspection activities for about four weeks starting from January 16.
Tata Motors slips 3% on JLR sales woes
Shares of Tata Motors snapped their five-day winning streak after they closed the day 2.83 per cent down at Rs 180.30 on slump in JLR global sales numbers. JLR retail sales for December were 52,160, down 6.4 per cent year-on-year. JLR’s retail sales in 2018 totalled 592,708 vehicles, down 4.6 per cent compared to 2017. The US-China trade war, weak growth of the Chinese economy and Brexit woes have hit the automotive sales volumes across the industry.
Eveready rallies 13% on sale buzz
Shares of Eveready Industries closed 13.06 per cent up at Rs 205.20, buoyed by media reports that Williamson Magor, which owns 45 per cent, is selling Eveready Industries. The BM Khaitan-led Williamson Magor is selling its flagship Eveready Industries, a leader in dry cell batteries and flashlights, triggering an auction process for one of the country’s oldest consumer brands, ToI reported.
Jet flies higher on Tata deal buzz
Shares of the beleaguered airline closed with a gain of 4.67 per cent at Rs 253.50 after reports emerged that it is planning to approach the Tata Group for stake sale talks. According to a Bloomberg report, Jet’s talks with foreign partner Etihad Airways stalled over the latter’s demand that Chairman Naresh Goyal step aside from his management role. With Jet Airways set to run out of cash in about a month, the carrier is now looking to restart talks with Tata Group.
Over 100 stocks hit 52-week lows
As many as 111 stocks, including Tata Steel, APL Apollo Tubes, Dena Bank, Gateway Distriparks and Nilkamal, hit 52-week lows on BSE. On the other hand, Aarti Industries, Linde India, Muthoot Finance, PVR and Torrent Pharmaceuticals were among the 47 stocks that touched their 52-week highs today.
95 stocks emanate bearish signal
Bank of India, CG Power, Oriental Bank of Commerce, Ruchi Soya, Torrent Power, JK Paper, Siemens, Indiabulls Real Estate and Cummins India were among the 95 stocks on BSE that showed bearish crossovers on BSE as per the momentum indicator moving average convergence divergence, or MACD. However, 82 stocks, including Vedanta, Eveready Industries, Linde India, Bata India and CESC showed bullish crossovers on BSE, signalling that they may remain on the upward trajectory.
Overbought and oversold stocks
Momentum oscillator Relative Strength Index, or RSI, showed 53 stocks in the oversold zone on BSE. Among them were MIC Electronics, Asian Granito India, Lux Industries, Gateway Distriparks and Sadhana Nitro Chem. On the other hand, 37 stocks, including GTL, Linde India, GBL Industries, Diksha Greens, Ratnabhumi Developers and Medico Intercontinental ended in the overbought zone.
TCS, GSFC below 200-DMAs
TCS, JK Paper, GSFC, Majesco, Sobha, Alkem Laboratories and Interglobe Aviation were among stocks that witnessed negative breakouts and settled below their 200-DMAs. HFCL, Indraprastha Gas, Prime Securities, JSW Energy and Welspun Investments were among those who settled above their 200-DMAs.
Source: Economic Times