Nifty faces resistance at 7,500; Bank Nifty hits fresh 52 week low

The S&P BSE Sensex was down 181 points at 24,643 and the Nifty50 was down 61 points at 7,502

Markets continue to get battered in the post noon trades as investors remained wary of the health of China’s economy. Besides, the precipitous drop in crude oil prices has rubbed some more salt on the wounds.

Moreover, the announcement of December quarter earnings of TCS and IndusInd Bank has kept the participants on the edge.

At 1:15 pm, the S&P BSE Sensex was down 181 points at 24,643 and the Nifty50 was down 61 points at 7,502. The Bank Nifty has hit a fresh 52 week low, down at 15,729.70

The slowing demand for oil from China and a stronger dollar has further pushed the international crude prices to the brink, hitting a fresh 12 year low.  However, the on-going geopolitical tensions between the oil producing giants Saudi Arabia and Iran might provide some cushion to the falling oil prices, analysts believe.

The European markets have also opened in red tracking weak global cues. The major indices are down between 0.2-1% each.

The biggest losers on the Sensex are TCS, Tata Motors, ONGC, Axis Bank, and Tata Steel, down between 2-3.5% each

The stocks that have managed to find some ground in an otherwise weak market are NTPC, Sun Pharma, Adani Ports, BHEL , and L&T, up between 0.3-2% each.

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(updated 12:10 pm)

After opening in green, markets slipped in the negative territory with participants booking profits at every rally as concerns in China continues to haunt. Caution prevails ahead of the December quarterly earnings season starting today with IT giant TCS and IndusInd Bank posting their numbers.

Meanwhile, the global markets continue to remain unnerved amid China growth concerns along with a sharp decline in the crude oil prices and quoting near 12 year low on oversupply glut.

Investors are keenly waiting for the retail inflation data for December and IIP numbers for November due to be unveiled by the government later today.

The S&P BSE Sensex was down 153 points at 24,672 and the NIfty50 was down 49 points at 7,515. In the broader market, the BSE Midcap and Smallcap indices are down between 0.2%-0.3%.
 

STOCKS IN FOCUS
 

TCS was down 1.2% ahead of its third quarter earnings later today while Infosys and Wipro eased between 0.2%-1.5% each as India's export-driven IT outsourcing firms are likely to raise client fees and process more work from their centres in India to cushion the impact of an increase in fees for work visas in the United States, their top market.

Meanwhile, energy stocks are reeling under pressure after crude oil prices hit near 12 years low on oversupply glut. ONGC and Cairn India slipped between 2%-3% each. However, RIL continues to outperform the peers and is up 0.4%.

Among individual names, Nestle India and Dr Reddy’s Laboratories, down more than 1% each, have touched their respective 52-week lows on the BSE.

Other prominent losers include Axis Bank, Hindalco, Tata Motors, Bharti Airtel down between 2-3%.

On the flip side, engineering conglomerate L&T is up 1.8% after securing fresh orders worth Rs  1,247 crore across business verticals.. State-owned engineering major BHEL is up 1.2%.

Adani Ports and Special Economic Zone plans to raise Rs 4,500 crore through long-term debentures. The aim is to reduce short-term debt and finance projects, including those at Mundra in Gujarat. The stock is up nearly 1%.

Among other shares, Aviation stocks witnessed buying interest as lower crude oil prices would boost earnings with aviation fuel comprising nearly 40% of the operating costs for the airlines. SpiceJet, Jet Airways, InterGlobe Aviation are up over 2% each.

GLOBAL STOCKS

Asian equities are trading near four year lows on China growth worries. Meanwhile, oil prices plunged near 12-year lows on oversupply glut. Japan's Nikkei slipped 1.3% hitting a three-month low and down over 8% so far this year. In addition, China’s Shanghai Composite after cracking 5% in yesterday’s trade has recouped its losses and is trading 0.3%. However, on the Wall Street, the S&P 500 .SPX managed to stabilise on Monday after three day of losses, finishing 0.1% higher.