INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Things took a nasty turn for market on Wednesday after FMCG heavyweight ITC missed its December quarter earnings estimates,
pulling down benchmark indices by nearly 1 per cent.
Headwinds on Brexit front, no breakthrough in trade war and slowdown concerns meant
ITC, HDFC twins and IT stocks were top drag as Sensex plunged 336 points to end day at 36,108
NSE Nifty saw a similar fate and ended 91 points lower at 10,832
ITC came off most and ended 4.16 per cent lower after firm missed ebitda margins for December quarter
The figure came in at 37.80 per cent against 39.80 per cent on a YoY basis
An ETNow poll had projected margins of 40 per cent during quarter under review.
Meanwhile, Sun Pharma played to gallery with a gain of 3.04
per cent to emerge as top index performer, followed by YES Bank, Tata Steel, HUL, Bajaj Finance and Vedanta
YES Bank is scheduled to report its Q3 results tomorrow
Barring healthcare and metals, all indices ended lower today with FMCG, consumer durables and power dropping 1 per cent each
IT, finance, auto, realty and technology indices had a bad day in office too
BSE Midcap and Smallcap too slipped, 0.28 per cent and 0.16 per cent respectively, but fared better than benchmark Sensex
Here's a quick look what took markets down today.
1
ITC numbers chokeITC is mainly responsible for dismal show, which accounts for nearly one-third of total points Sensex lost today
Less than expected numbers from FMCG giant spoiled mood.
2
G
lobal markets look dullBogged down by global growth worries and a lack of any solution to US-China trade dispute, global markets took a
European shares too dipped as a new batch of corporate updates stoked fresh concerns
MSCI's Asia ex-Japan stock index was weaker by 0.07 per cent while Japan's Nikkei closed down 0.14 per cent
Persistent selling by FIIsForeign institutional investors have been offloading shares in market for past five days, NSE data suggested
This did not play in favour of stock market bulls.
4
Oil prices inch upOil prices inched up on Wednesday after China and Japan said they would use fiscal spending to stem an economic slowdown
that is weighing on global financial markets, Reuters reported.
International Brent crude oil futures were at $61.79 per barrel, up 29
cents, or 0.5 percent, from their last close.
Expert-view:Vinod Nair, Head of Research, Geojit Financial Services
"Market continued to trade
on downside as absence of major surprise from quarter earnings failed to give direction
Investors are taking a cautious approach given their focus on global headwinds and upcoming general election
While FIIs are sellers in market, expectations of a slow pace in US Fed rate hike and possibility of rate cut in India will ease liquidity
crunch in market."
Rajnath Yadav, Senior Research Analyst - Fundamental Research Desk Choice Broking
"Domestic benchmarks opened on a flat
note amidst weak global cues and cautiousness among investors ahead of December quarter results of certain blue chip companies
However, strengthening of rupee gave some support
ICICI Prudential continued to decline for second day, falling more than 11 per cent after weak Q3 results
Benchmarks extended losses in afternoon session and closed down by 0.9 per cent
FMCG heavyweight ITC fell by more than 4 per cent after its margin missed estimates
In ongoing week, equity market would be volatile."
