Equity benchmarks as well as broader markets extended losses in later morning trade, with the Nifty breaking 8750 after investors digested third quarter earnings.
The 30-share BSE Sensex dropped 157.30 points to 28182.01 and the 50-share NSE Nifty fell 54.40 points to 8737.90.
The BSE Midcap and Smallcap indices plunged 1 percent each on weak breadth. About three shares declined for every share rising on the exchange.
ICICI Bank and Infosys declined more than 1 percent. L&T also lost morning gains, down 0.2 percent. Reliance Industries also came off day’s high a bit.
Tata Motors shares continued to be under pressure, down 8 percent after disappointing earnings. Edelweiss downgraded to hold from buy, with reduced target price at Rs 501 (from Rs 604) after lowering FY17/18 EBIDTA estimates by 35/25 percent to Rs 29,500/38,500 crore to reflect weaker margins.
Sun Pharma slipped 3 percent after gross margin in Q3 contracted 560 basis points QoQ (440 bps YoY), primarily led by higher contribution from Olmesartan AG sales and Japan business consolidation. Hence, Motilal Oswal cuts FY18/19 EPS estimates by around 8 percent, building slower ramp-up in sales and margin expansion. However, it believes the current stock price does not reflect key positives like Ranbaxy integration benefits, Halol/Mohali plant resolution and investments in specialty business. It remains an attractive Indian play on specialty business in the US, the brokerage house says while retaining buy on the stock with target price of Rs 850.
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