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How NIFTY ended up losing almost 300 points even before the markets opened. Click here to know how…. Market updates for 11/10/18

PurpleTrades - stock market courses > News > How NIFTY ended up losing almost 300 points even before the markets opened. Click here to know how…. Market updates for 11/10/18

Report by- Sabyasachi Bhattacharya

 

TCS announced their Q2 results; revenue growth 7.6% QoQ on robust digital growth-

Country’s largest software company Tata Consultancy Services has reported 7.6 percent sequential growth in second quarter profit to Rs 7,901 crore with growth across sectors. The year-on-year growth was 22.6 percent. Profit in June quarter stood at Rs 7,340 crore. Revenue from operations grew by 7.6 percent quarter-on-quarter (up 20.7 percent YoY) to Rs 36,854 crore for the quarter ended September 2018, driven by robust digital growth. In dollar terms, the company reported 3.2 percent sequential growth in topline to $5,215 million while revenue growth in constant currency terms was 3.7 percent QoQ, which was largely in line with expectations. On the operational front, earnings before interest and tax (EBIT) grew by 13.9 percent to Rs 9,771 crore with margin expansion of 147 basis points on sequential basis, thanks to rupee depreciation and absence of wage hikes. The Tata Group firm said revenue growth accelerated in BFSI to 6.1 percent during the quarter against 4.1 percent in Q1, and Retail & CPG to 15.6 percent against 12.8 percent in previous quarter. Revenue growth in North America has also risen further to 8.1 percent compared to 7 percent in Q1. Take a look at their report-

Source-TCS, MoneyControl, Purple Trades Research Department 

 

Excessive fear grips Indian Markets as major Indices bleed on Dalal Street-

Chart source- Upstox

What a day it was. Pure anarchy was seen on the Dalal Street as Nifty nosedived before the opening of the market itself. As you can see Nifty broke all resistances, messed up with all technical, mocked every indicator available. There was huge gap-down seen in both Sensex and Nifty. Nifty opened almost 292 points lower which in itself is a very peculiar yet horrifying event. Weakness was visible among banking names, particularly in PSU banks along with metals, automobiles, pharmaceuticals, and IT names. A recovery in rupee from record lows failed to make any impact. At the close of market hours, the Sensex closed down 759.74 points or 2.19% at 34001.15, while the Nifty ended lower by 225.40 points or 2.15% at 10234.70. The market breadth is negative as 824 shares advanced, against a decline of 1,736 shares, while 866 shares were unchanged. After the market opened, both indices were able to recover some of the damages caused by the Gap-down but it wasn’t enough as Nifty and Sensex both ended up lower. A very beautiful event in these indices was that although Nifty closed much LOWER and lost a lot of value, yet it made a bullish candle on the daily charts. Amazing, Right? Well it happened because Candlesticks are formed from the DAY’s Open and DAY’s Close, but major fall in the market happened due to Pre-Market Selling Orders. Let us now take a look at the factors that may explain such a behavior in the market-

  • China redeemed 1.3 trillion US bonds in 3 days, China seems to be taking revenge on US Tariff War. This means that China has taken out funds off the US bonds which is not a good sign for US as the money from the US bonds market is being flown out back to China. These bonds are used for various Government purposes, hence deficit of money in the Bonds market is obviously going to hurt US.
  • Gold Prices increased by 202 points which is not seen as a good factor for the equity markets
  • Overnight, US markets saw their worst decline in 8 months with rising Treasury yields and trade-related worries weakening risk appetite for equity investors.
  • Risks to the global financial system have risen over the past six months and could increase sharply if pressures in emerging markets escalate or global trade relations deteriorate further, the International Monetary Fund said on Wednesday.
  • Persistent selling by FIIs: Pulled out over 15000 cr in October.
  • Each and every Index present in the world currently went Bearish. The overall global breath was negative. Have a look at the following picture to know more-

Source- MoneyControl, Purple Trades Research Department 

 

Top sectors that moved the market today- Data source- Moneycontrol

Top Gainers for today-  Data source- Moneycontrol

 

 

Top losers for today- Data source- Moneycontrol

 

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