Sensex tanks over 500 points: Are big-bang IPOs draining away liquidity?

NEW DELHI: Benchmark indices were off to a negative start on Thursday, ahead of the monthly expiry of futures and options contracts later in the day. The action was largely stock-specific as over half a dozen Nifty50 companies including ITC, Bajaj Auto and L&T reported quarterly earnings the previous day. Further, weak global market mood also kept sentiments in check back home.

At 10.50 am, the BSE Sensex was trading 547 points, or 0.90 per cent, lower at 60,595. The Nifty50 fell to 18,029, down 181 points or 0.99 per cent.

“The range of 18,100-18,000 is key support for Nifty50. As of now, we do not see any indication of Nifty50 breaching this important support zone on the expiry day itself but it may happen sooner or later. On the higher side, 18,350-18,400 remains a sturdy wall,” said Sameet Chavan of Angel Broking.

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Analysts also believe that in the coming days, the primary market with its keenly watched IPOs is likely to be the center of attraction, that can dampen secondary market appeal.

“The Nykaa and Paytm IPOs totalling around Rs 24,000 crore are likely to witness enthusiastic investor response and this will drain away some liquidity from the secondary market. This may keep the secondary market rather subdued, but sharp reactions to results will lead to volatility in inpidual stocks. On the flip side, the new Covid variant AY 4.2 has emerged as a new concern. China imposing price curbs on coal will have implications for global coal and metal prices. This can restrain the rally in metal stocks, which has been the best performing segment of the market in this rally,” said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

In stock-specific moves, shares of

Titan Company

fell 3.94 per cent to Rs 2,363, even as the Tata group firm reported a nearly four-fold jump in consolidated net profit at Rs 641 crore for the September quarter.

Tata Steel shares declined 1.92 per cent to Rs 1,299. Axis Bank fell 1.60 per cent to Rs 774. ICICI Bank, HDFC Bank and ITC shed over 1 per cent each.

ITC reported a 13.67 per cent year-on-year (YoY) rise in standalone net profit at Rs 3,697.18 crore compared with Rs 3,252.62 crore in the corresponding quarter last year.

IndusInd Bank

climbed 4.13 per cent to Rs 1,189 as the September quarter profit rose sharply led by the strongest growth in its loan book since CEO Sumant Kathpalia took charge in March 2020. Larsen &Tourbo, Bajaj Auto and UltraTech Cement rose up to 2.5 per cent.

Bajaj Finserv, Adani Green Energy, Adani Total Gas, NPTC, SBI Cards & Payment Services, DLF, Interglobe Aviation, Marico, Tata Power, Bajaj Holdings and Investments, Gujarat Gas, AU Small Finance Bank, Laurus Labs and Indian Bank are among the companies that will announce their September quarter results today.

Global Markets
Global stocks eased from record peaks as a stark reminder of supply chain snags in corporate earnings reports stalled their rally, while investors also looked to whether central banks may consider tightening monetary policy earlier than thought.

MSCI’s gauge of world stocks, ACWI, dipped 0.05 per cent in early Thursday trade, with Japan’s Nikkei leading the loss with fall of 1.1 per cent.

Mainland Chinese shares slipped 0.2 per cent while MSCI’s broadest index of Asia-Pacific shares outside Japan ticked down 0.1 per cent.

Sensex falls for 5th day straight; what’s spooking D-Street investors?

New Delhi: Benchmark indices soon wiped out early gains amid valuation concerns and a weak global market setup. IT and FMCG stocks led the fall while banking stocks held ground.

At 9.50 am, the BSE Sensex was trading at 60,535, down 289 points or 0.47 per cent. The Nifty50 93 points or 0.51 per cent to 18,022. Broader markets underperformed benchmarks as BSE Midcap and Smallcap indices tanked a per cent each in early trade.

BSE Realty index was the worst loser, followed by IT, tech, consumer discretionary, power, auto and utilities sectors that fell over a per cent each, adding pressure on the market. However, BSE Bankex gained in early trade.

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The threat to the bulls is likely to come from the FIIs who have turned into sustained sellers, said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

“The Q2 results, so far, look impressive particularly in energy, metals, mining, IT and banking. The resurgence of Covid cases in the Eastern parts, particularly West Bengal, has to be watched,” he added.

Shares of

ICICI Bank

surged 8 per cent to Rs 817.20 as the private lender reported a 24.7 per cent year-on-year (YoY) rise in consolidated net profit at Rs 6,092 crore for the September quarter 2021-22. It had posted a net profit of Rs 4,882 crore in the same quarter of the previous fiscal year.

Reliance Industries shares advanced 3 per cent to Rs 2,699 in early trade before the selling pressure kicked in. Mukesh Ambani’s firm reported a 43 per cent jump in net profit in the July-September quarter to Rs 13,680 crore compared to Rs 9,567 crore a year back.

Multi Commodity Exchange of India declined 8 per cent as the commodity bourse reported a 44 per cent YoY decline in consolidated net profit at Rs 32.66 crore for the quarter ended September 2021.

IRCTC, meanwhile, hit the lower circuit of 10 per cent at Rs 4,159.70 as the stock was placed under a ban in the F&O segment. The scrip has shed about 35 per cent in the last one week.

In the broader Markets, Tatva Chintan Pharma, KR Infra, IG Petrochemicals, IRB Infra, Subro, Ambika Cotton Mills and Tanla Platforms zoomed. On the other hand, Rail Vikas Nigam, GNA Axles, Aster DM Healthcare, IEX, Coforge, Srikalahasthi Pipes, Welspun India, Mahindra Holidays and Resorts India declined the most during the early trade.

Tech Mahindra, Indus Towers, SRF, HDFC Asset Management Company, Coforge, Colgate Palmolive, Icra, Kansai Nerolac Paints, The Ramco Cements, Aditya Birla Sun Life AMC, Home First Finance Company India, CEAT and CSB Bank are among companies that will announce their September quarter results today.

On the global market front, Asian shares opened mostly lower before giving out mixed cues on Monday as investors await corporate earnings and Japan’s upcoming general election. MSCI’s index of Asia-Pacific shares outside Japan shed 0.13 per cent, Japan’s Nikkei declined 0.71 per cent and South Korea’s Kospi added 0.14 per cent.