Advertisement

Home / Business / Poor results, crude spike pull down stocks

Poor results, crude spike pull down stocks

The key indices have touched record levels in recent times
 NSE Nifty fell 127.80 points, or 1.03 per cent, to 12224.55

Our Special Correspondent   |   Mumbai   |   Published 20.01.20, 08:22 PM

A disappointing set of results from some of the heavyweights amid higher crude oil prices on Monday dragged key indices lower with the benchmark BSE Sensex falling 416.46 points to end at 41528.91.

While Reliance Industries, HDFC Bank and TCS reported their quarterly earnings over the weekend, their operational numbers failed to cheer investors even as their profit numbers met Street estimates.

The key indices have touched record levels in recent times despite the prevailing slowdown on hopes of a turnaround in the economy. Though the quarterly numbers of the giants have belied some of these expectations, many of the brokerages had expected another tepid quarter from corporate India thanks to the poor economic growth. Some of them expect a recovery only from the second half of 2020-21.

Though the 30-share index opened in the green at 42263 and struck a record intra-day peak of 42273.87, it gave up all gains to settle 416.46 points, or 0.99 per cent, lower at 41528.91.

Likewise, the broader NSE Nifty fell 127.80 points, or 1.03 per cent, to 12224.55 after hitting a record intra-day high of 12430.50 in the early session.

While the mood is expected to remain cautious in the run-up to the Union Budget, analysts added that the focus will also be on financial results. This was in evidence on Monday as shares of Kotak Mahindra Bank turned to the biggest laggard in the Sensex group as its bad loans inched up during the third quarter ended December 31, 2019.

“Despite the non-encouraging third quarter numbers from index giants — Reliance, HDFC Bank and TCS, the market had managed to open higher.

“However, the higher opening got converted into hefty profit taking and that has triggered deep decline during the day… Stocks fell mainly due to non-encouraging results from front line companies and also due to the overbought status of the market,’’ Shrikant Chouhan, senior vice-president, equity technical research, Kotak Securities, said.

According to Vinod Nair, head of research, Geojit Financial Services Ltd, the markets have approached a consolidation phase due to mildly subdued third quarter results in banking and heavyweights.

Advertisement


Advertisement
Advertisement
Advertisement
 
 
 
Copyright © 2020 The Telegraph. All rights reserved.