Markets falter for third straight day as oil prices dip

Markets closed the session on a lower note for the third straight day amid weak European cues and fall in crude oil prices. Markets made a firm opening however, the rally fizzled out on account of profit booking at higher levels.  

The S&P BSE Sensex ended down 71 points to settle at 28,224 and the Nifty50 settled 17 points lower at 8,706. In the broader market, both the BSE Midcap and Smallcap indices performed better than the front-liners with gains of 0.1% each.



Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services said, "After successive days of falls had rendered prices attractive, value buying lifted indices higher early in the day. It also helped that Asian stocks rose sharply from the day’s lows following BOJ’s comments. But most of the gains were wiped off, as European markets’ turn lower diffused bullish vibes, resigning indices to a lower close. FIIs had also been net sellers in the last couple of days, keeping a lid on upsides, and with just a day ahead of F&O expiry, rollovers have remained below average, suggesting that risk appetite is lower, especially with RBI rate decision scheduled for next week."

In overseas stock markets, European and most Asian stocks rose with sentiment buoyed by the US presidential debate where Hillary Clinton appeared to gain momentum over Donald Trump.

Investors were reacting to the first televised debate between US presidential nominees Hillary Clinton and Donald Trump yesterday. Clinton appeared to have edged out her Republican opponent based on reports on the initial market reaction.

Crude futures slipped in Asian trade on Tuesday as investors took profits after prices climbed more than 3% in the previous session.

Back home, the rupee firmed up by 12 paise to 66.48 against the dollar, maintaining its upward trend for the fourth straight day on sustained selling of the US currency by exporters and banks amid a strong domestic equity market.

Besides, domestic markets will remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month September 2016 series to October 2016 series. The near month September 2016 derivatives contracts expire on Thursday, 29 September 2016.

"As per OI data, shift of range for Nifty50 is seen from 9,000- 8,700 to 8,800 to 8,600 which indicates a bearish undertone in coming sessions. A sell on rise strategy may augur well for traders and investors. Auto and realty stocks shall be kept under scanner due to rate cut expectations on D Street", adds Mustafa Nadeem, CEO, Epic Research.

India has become the centre of the world's oil demand growth and the country's economic growth will affect global commodities, Citigroup Inc said in a research note.

Among key stocks, Asian Paints, TCS, Lupin, Wipro and Power Grid were up 0.3%-1%. However, L&T, Adani Ports, L&T, Bharti Airtel, ONGC and ICICI Bank fell between 1%-2%.

The share buyback programme worth Rs 3,650 crore of Coal India would open next week on October 3.

Among other shares, Multi Commodity Exchange of India (MCX) touched its 52-week high of Rs 1,181 in an intra-day trade. The stock ended up 8% on the BSE, extending its 16% surge in past two weeks.

MRO-TEK was locked in upper circuit of 10% to Rs 83.25, extending its past four day’s surge on the NSE, on back of heavy volumes after Jitendra Virwani, a realty tycoon, increased its stake in the company through open market.

Mukta Arts was locked in upper circuit of 20% at Rs 102, also its 52-week high on the BSE, after the company said that it is planning to transfer its entire business of cinema division to its wholly-owned subsidiary Mukta A2 Cinemas.

Shares of breweries & distilleries companies were in focus with Pioneer Distilleries, Globus Spirits and Som Distilleries & Breweries locked in upper circuit of 20% each on the BSE.

Empee Distilleries, Tilaknagar Industries, Radico Khaitan, GM Breweries and United Breweries were up 1%-13%.

Vivimed Labs hit an upper circuit limit of 20% at Rs 102.65 on the BSE after a block deal.


With Capital Market inputs