Markets close flat; Idea slips 5%; D-Mart ends 114% higher on debut

In a volatile trading session, the benchmark indices on Tuesday settled the day flat led by losses in pharma and banking stocks.

The S&P BSE Sensex settled the day at 29,485, down 33 points, while the broader Nifty50 closed at 9,125 down 5 points. In the broader market, S&P BSE Midcap index slipped 0.4%, while the S&P BSE Smallcap index dipped 0.2% at close.

"The market was dragged down in the initial trade due to regulatory issues with US FDA and profit booking on banks impacted the broad indices. However, accumulation at the lower levels led to a flat close. Investors sensing a wave of consolidation while incremental rise in FII inflow and a strong rupee could protect the downside," said Vinod Nair, Head of Research, Geojit Financial Services in a post-market note.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 1,689 shares declined and 1,096 shares rose. A total of 189 shares were unchanged.

D-Mart makes a stellar debut

Avenue Supermarkets, which owns and operates the chain of D-Mart supermarkets, entered into the list of the top-100 most valuable companies in terms of market capitalisation (m-cap) following a sharp surge in its stock price on debut today. 

The stock listed at Rs 604.40, registering a sharp gain of 102% on the BSE against the issue price of Rs 299. It extended gains to end 114% higher at Rs 642 against its issue price. On NSE, the stock settled at Rs 648.

Most analysts advised to book profits on the stock as valuations are running high at the current levels. CLICK HERE FOR FULL REPORT

Sectors and stocks

Nifty Pharma index (down 2%) was the leading sectoral loser, led by losses in Divi's Labs and Dr Reddy's.

Dr Reddy's Laboratories slipped 5% to hit its 52-week low of Rs 2,602 on reports that the USFDA has found repeat observations from 2015 warning letter. 

Shares of Divis Laboratories tanked 20% to Rs 635, also its 52-week low on BSE in early morning trade, after the company said US drug regulator issued an import alert on the company’s Visakhapatnam unit-II.

Idea Cellular slipped nearly 8% to Rs 90 in intra-day trade, extending its previous day’s 9.5% decline on BSE, after Idea and Vodafone formally announced a merger with the Birla-owned company.

The stock had hit a high of Rs 123.75 in intra-day trade on Monday immediately after the merger announcement. It has now slipped 27% from those levels.

Bharti Infratel ended over 1% higher after Nettle Infra Investments bought about 21.63% stake in the company from promoter Bharti Airtel.

Global markets

Overseas, European markets were slightly higher as investors eyed rising oil prices and intensifying talks between Greece and its euro zone creditors. Euro Stoxx 50 and CAC 40 gained 0.3% each, while FTSE 100 shed 0.2%.

Asian markets surged to 21-month highs. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3% in its eighth consecutive day of gains with tech-heavy Seoul and Taipei shares hitting two-year highs while Hong Kong's Hang Seng scaled 1-1/2-year highs.

Japan's Nikkei dropped 0.3%, weighed by financial stocks, which were hurt by lower US yields and exporter stocks, which fell on the yen's gains against the dollar.



(with Reuters inputs)