Market snaps 2-day gains, selling in banking, metal and IT
At close, the Sensex was down 426.85 points or 0.53% at 79,942.18, and the Nifty was down 126 points or 0.51% at 24,340.85.
Sensex and Nifty finished on a flat note on Tuesday after heavy selling in the last two sessions over disappointment over the Budget proposals.
The Sensex gained 10.25 points to end at 38,730.82 while the Nifty settled at 11,555.90, lower by 2.70 points. Tata Consultancy Services closed 2.05 per cent lower at Rs 2,131.45 per share ahead of its earning announcement.
The proposal to increase minimum public shareholding of listed companies to 35 per cent, tax on buybacks, and especially the surcharge on foreign portfolio investors (FPIs) has not been received well by the investor community.
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“Lack of real growth in the economy while equity is at premium valuation is impacting the market. IT bellwethers slid ahead of earnings season as anxiety over global growth and trade disputes cast cloud over revenue estimate,” said Vinod Nair, Head of Research, Geojit Financial Services Ltd.
Titan lost 12.25 per cent, the most among the Nifty50 stocks after the company said that the it’s growth, particularly in the jewellery segment was lower than planned, owing to tough macro-economic environment and very high gold prices “particularly in June”.
A small positive candle was formed on Tuesday with a long lower shadow. Technically, this pattern indicates a high wave type candlestick pattern. Normally, a formation of such high wave type candle patterns after a reasonable weakness could be viewed for a minor upside bounce, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
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