Market in wait & watch mode ahead of earnings season

Mumbai, Jan 9 (PTI) Benchmark Sensex today closed almost 33 points lower at 26,726.55, extending losses for the second straight session, dragged down by healthcare, oil&gas and power stocks amid caution ahead of December quarter earnings due from this week.

A sense of uncertainty prevailed among investors, who fear that companies' quarterly results will be impacted by the Centre's surprise demonetisation move. Besides, other developments with regard to state assembly elections and next month's Union Budget are also influencing sentiment.
Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services Ltd, "The market is consolidating in a narrow range ahead of the kick start of earnings season this week. The participants are lined up with checklist to determine how the effect of cash crunch and the rise in commodity prices have impacted the margins and the profitability. Any underestimated impact is likely to create a cascading effect to the euphoria of a pre-budget rally." 

The key indices traded choppy with realty, IT, FMCG and industrials gaining and oil&gas, healthcare, energy and power sector stocks falling. The broader shares of midcap and smallcap companies outperformed the headline indices.

The Sensex opened higher at 26,860.81 and hovered between 26,860.88 and 26,701.18 before ending at 26,726.55, showing a loss of 32.68 or 0.12 per cent.

The gauge had lost 119.01 points in previous trade.

The NSE 50-share Nifty also closed marginally lower by 7.75 points, or 0.09 per cent, at 8,236.05.

Overseas, Asian stocks ended mixed with Japan stock market closed for holiday. Shanghai Composite, Singapore, Hong kong stocks gained between 0.25 to 0.64 per cent.

European stocks were trading lower on caution ahead of eurozone unemployment data due later today, with CaC france and Germany Dax down at 0.60 per cent and 0.44 per cent. While London FTSE trading up at 0.26 per cent.  - PTI

Follow by Email