Mumbai: The market failed to rebound on Thursday despite upside in Asian markets and further upmove in European markets. Technology, auto, oil and FMCG stocks dragged the market down while capital goods & pharma supported.
The 30-share BSE Sensex fell 114.06 points to 27573.66 and the 50-share NSE Nifty declined 34.50 points to 8328.55. The broader markets, too, declined in late trade.
The BSE Midcap and Smallcap indices were down 0.33 per cent each. Though the Greece and China woes continue to weigh, the market started focussing on April-June quarter earnings, believe experts. Prabhat Awasthi of Nomura said there is a significant sequential improvement expected in earnings this quarter.
According to him, if Nomura's forecast is correct, June quarter will have the best sequential growth in past four years for sales, EBITDA and net profit, he added. Ajay Srivastava of Dimensions Consulting said the inherent characteristic of the market continues to be bullish. It is unlikely that investors are factoring in an uptick in earnings before Q1 FY17, he added.
Globally, major European markets rallied on hopes of solid Greek proposals for creditors this week. Euro zone leaders have given Greece until Friday to produce a detailed reform plan ahead of a summit of all 28 members of the European Union (EU) on Sunday. France's CAC, Germany's DAX and Britain's FTSE gained 1-1.8 per cent (at 16 hours IST). Asian markets, too, saw a smart rebound with the China ending the day with 5.8 per cent rally on the back of fresh regulatory support.
Hang Seng surged 3.7 per cent and Nikkei rose 0.6 per cent. Commodities also recouped losses. Brent crude advanced 0.9 per cent to USD 57.57 a barrel and WTI crude gained 1.39 per cent at USD 52.37 a barrel. Copper futures jumped over 1 per cent. Back home, TCS plunged 2.8 per cent ahead of Q1 earnings today evening. Its rivals Infosys, HCL Technologies and Wipro were down 1.5-2 per cent.
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