Sensex, Nifty extend losses; LTIMindTree tumbles 11%; OFSS zooms 30%

Domestic equity market ended their weakness for the third straight session on Thursday amid the selling pressure in select bluechips post disappointing Q3 earnings. However, benchmark indices managed to script a decent recovery, but failed to recoup entire losses. Global cues over interest rates continued to push the market lower.

For the day, BSE's Sensex dropped 313.90 points, or 0.44 per cent, to settle at 71,186.86. NSE's Nifty50 plunged 109.70 points, or 0.51 per cent, to end the day at 21,462.25. In the broader markets, the BSE midcap index settled marginally lower, while the BSE smallcap indices managed to post mild gains. Fear gauge India VIX tumbled about 6.7 per cent to 14.07-mark.

Benchmark indices opened lower and further moved into the red continuing yesterday’s bloodbath but recovered some of the day's losses amid signs that global central banks including the Federal Reserve and the European Central Bank will not rush to lower interest rates as previously anticipated, said Avdhut Bagkar Technical and Derivatives Analyst, StoxBox.

"The nifty 50 index opened on a negative note, but managed to recoup losses in the early hour. The Mid-to-end session viewed a positive bias, with index seeking to fill the gap down range of 21550 to 21474. The immediate support for the index stays at 21300 and resistance falls at 21600," he said.

On a sectoral front, the Nifty consumer durable index dropped 1.7 per cent, while the Nifty financial services index declined a per cent. The Nifty metal and private bank indices were other laggards. Among the gainers, the Nifty pharma index rose more than a per cent, followed by the Nifty healthcare, PSU Bank, realty and oil & gas indices.

In the Nifty50 pack, LTIMindtree tanked about 11 per cent after disappointing Q3 results, while NTPC and HDFC Bank dropped more than 3 per cent each. Titan, Power Grid and Asian Paints were other key laggards for the day. On the contrary, Sun Pharma rose about 3 per cent, while Tech Mahindra, Cipla and Tata Motors gained 2 per cent each.

The benchmark indices exhibited recovery from the day’s low and ended in red amid weak global cues, as investors are trimming bets on rapid FED cuts due to strong US retail sales and the resulting rise in global bond yields, said Vinod Nair, Head of Research, Geojit Financial Services.

"Furthermore, oil price advances and rate escalation risks have led to disruptions in global shipping and crude production. The broader market continued its selling pressure given the elevated valuation and profit booking with an aim for sector rotation," he added.

A total of 3,910 shares were traded on BSE on Thursday, of which 1,906 settled with cuts. 1,898 stocks ended the session with gains while 106 shares remained unchanged. During the day, 347 shares hit their upper circuit, whereas 276 shares tested the lower circuit levels for the day.

In the broader markets, Oracle Financial Software Services (OFSS) rose about 30 per cent after strong Q3 performance, while Ajmera Realty and Infra India rose over 13 per cent after entering a JV with Keystone Realtors. PCBL ended 12 per cent, while Prataap Snacks and EIC Associated Hotels gained 11 per cent each.

Among the laggards, Sanghi Industries shed another 10 per cent for the day, while Indian Energy Exchange (IEX) dropped 7 per cent amid negative news flow for its business model. Alok Industries declined 6 per cent, while ICICI Prudential Life Insurance Company declined 5 per cent at the end of the session.

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