Benchmark Sensex and Nifty closed lower on Thursday, backed by negative global cues as global investors fretted over the weak economic data and rising COVID-19 cases.
Erasing Wednesday's gains, Sensex closed 242 points lower at 31,443 and Nifty ended at 9,199, down 71 points.
Solara Active Pharma fell 13%, Kansai Nerolac Paints dropped 2% after the companies reported their March quarterly results. On the contrary, YES Bank gained 20% intraday, followed a 6.5% rise in JM Financial and 4.4% intraday jump in HCL Technologies share price post earnings.
Shares of SKF India (0.91%), Cyient (3.02%), RBL Bank(1%), Cigniti Technologies (3.32%), ICICI Securities (3.77%) rose ahead of their quarterly earnings today. Meanwhile, Gillette was declining by 1.2%.
HUL, Kotak Bank, ONGC, Bharti Airtel, PowerGrid, Titan and Nestle were among the top losers in the Sensex pack. HCL Tech, Sun Pharma, Axis Bank and Bajaj Finance were among the top gainers.
Sectorally, except media and PSU Banking, all other indices closed in red, with banking and financials falling the most.
S Ranganathan, Head of Research at LKP Securities said," Oil &Gas stocks together with pivotals like Kotak Bank dragged indices even as Reliance held its ground firmly with gains. The key highlight of the day was selective buying seen in Speciality Chemicals & Pharmaceuticals as the space continues to attract value buyers."
Experts said domestic market sentiments turned cautious amid mixed signals on fading hopes of policy support, corporate earning performances this week and weak economic data. Domestic investors were also pessimistic over concerns of delay in the announcement of second fiscal stimulus and foreign portfolio investors offloading equities in the capital market.
Ajit Mishra, VP - Research, Religare Broking said," The recent surge in COVID-19 cases in India and the unending wait of the stimulus package has started taking a toll on the investors' sentiment. Besides, subdued earnings announcements are adding to the worries. We thus reiterate our negative view on markets."
Global markets turned volatile on the back of downbeat economic data, heightening the economic fallout of the coronavirus outbreak and growing worries about falling demand that kept oil prices below $30 per barrel.
Among Asian counterparts, Shanghai, Singapore, South Korea ended lower, while Nikkei and Taiwan were gaining. European markets opened in green on Thursday, with FTSE up 0.35%, CAC 0.50% and DAX up 0.70%. US stocks also closed mixed yesterday.
Markets were also volatile after Trump said China may or may not keep a trade deal between the two countries.
Experts said investors remained worrisome over the spiking COVID-19 cases in the country and worldwide. Globally, there are 38.22 lakh confirmed cases and 2.65 lakh deaths from the coronavirus COVID-19 outbreak. In India, countrywide coronavirus tally has climbed to 52,987, while the death toll rose to 1,785.
As per technical outlook, trendline suggested a fall below 9180 can take Nifty towards 9000 mark. While support is placed at around 9,100 and then at 8,900 levels, resistance is observed at 9,450 and then at 9,550 levels.
Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking said, "We remain hopeful as long as a key support zone of 9100-8900 is not violated. On the upside, intraday resistances are seen at 9277 followed by 9350. A sustainable move beyond this would trigger a good upmove to test the sturdy wall of 9450 - 9550".