Monday, December 26, 2016

Nifty back above 7900 amid pressure; Bank sheds 1%, Maruti soars

The Nifty today broke its Brexit day low of 7950. Demonetisation is expected to have an extended impact on the market and December quarter earnings will be low. Also, the US President-elect Donald Trump will take charge on January 20, which is adding to market’s worry. 

The 30-share BSE Sensex was down 208.20 points at 25832.50 and the 50-share NSE Nifty fell 66.90 points to 7918.85. The broader markets underperformed benchmarks with the BSE Midcap and Smallcap indices shedding over 1.3 percent on weak breadth.


ICICI Bank, HDFC, HDFC Bank, Tata Motors, Axis Bank and SBI were down 1-2 percent while Maruti Suzuki, Asian Paints and Dr Reddy's Labs outperformed, rising 0.5-1 percent.

The market earnings multiple has increased to 15.54x vs 15.34x a month ago, the market is trading at a 9.3 percent discount to its five-year average


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