Sensex down 150 pts at 1-month low; Infosys rises 4.4%

Mumbai: Falling for the second straight day, the BSE benchmark Sensex Monday dropped by almost 150 points to end at one-month low level of 19,610.48 as oil and power sector shares tripped on weak manufacturing output signals.

The 30-share Sensex resumed higher at 19,859.22, but declined immediately to 19,541.97 amid weak global cues.

With a HSBC survey showing that manufacturing sector output fell in the month of May -- first decline since March 2009 -- shares from oil & gas, power, consumer durables and capital goods saw selling pressure. Sensex ended the day at one-month low of 19,610.48, loss of 149.82 points or 0.76 percent. This is its weakest closing since 19,575.64 on May 3.

The sentiment was also affected by a weak rupee which slumped to 11-month lows of 56.73 against the US dollar.

Similarly, the NSE 50-share CNX Nifty dropped by 46.65 points, or percent 0.78 percent, at 5,939.30. MCX-SX flagship index, SX40, also ended 97 points, or 0.83 percent, lower at 11,634.91 points.

However, Infosys jumped nearly 9 percent on hopes that co-founder N R Narayana Murthy, who will be assuming the post of executive chairman, will propel back the IT major into high-growth trajectory. The stock closed 4.4 percent up.

Among Sensex components, 20 stocks declined led by Reliance Industries, ICICI Bank, HDFC Bank, HDFC Ltd, Maruti Suzuki, Hero MotoCorp, Bajaj Auto and Sun Pharma.

"The sharp rise in dollar over last one month is actually what is putting pressure on equity markets. Further, the weak manufacturing PMI data too added pressure today," said Milan Bavishi, Head Research, Inventure Growth & Securities.

Auto stocks fell as auto companies reported weak sales for the month just gone by. Shares of two-wheeler makers declined as OMCs raised petrol rate, traders said.

A downtrend in the Asian region and lower opening in Europe further influenced the market sentiment, they added.

Sectorally, the Oil and Gas sector suffered the most by losing 1.34 percent, followed by power index (0.99 percent), Auto sector index (0.79 percent).

Globally, Asian stocks ended lower after improving US economic data added to concerns that the Federal Reserve may scale back its monetary stimulus. Key indices in China, Hong Kong, Japan, Singapore, Taiwan and South Korea ended with up to 3.72 percent losses.

European stock markets were also trading lower ahead a raft of factory activity data coming in from across the eurozone. Key indices in UK, France and Germany were down by 0.59 percent to 1.58 percent.

Back home, 20 out of 30 Sensex-based scrips closed down. Hero MotoCorp was the top loser with a fall of 3.65 percent, followed by Bajaj Auto (3.32 percent), ONGC (2.85 percent), Sun Pharma (2.68 percent), HDFC (2.40 percent), Maruti Suzuki (2.27 percent), RIL (2.17 percent), TCS (1.94 percent), HDFC Bank (1.63 percent), BHEL (1.43 percent), NTPC (1.39 percent), Tata Power (1.18 percent), ITC (1.04 percent) and L&T (1.00 percent).

However, Infosys rose by 4.4 percent, Tata Steel by 1.6 percent, Gail India by 1.4 percent, SBI by 1.07 percent and Bharti Airtel by 1.03 percent.

Amar Ambani, Head of Research at IIFL, feels selling pressure on the Nifty could intensify going forward. "Selling pressures accentuated on Monday after the Nifty failed to sustain above the 6,120 mark. Moreover, Nifty breached the neckline of a head and shoulder pattern in intra-day trades which indicates that selling could intensify further."

Among indices, S&P BSE-Oil&Gas dipped by 1.84 percent, followed by S&P BSE-Power (1.02 percent), S&P BSE-CD (0.99 percent) and S&P BSE-CG (0.99 percent). On the wining side S&P BSE-Teck rose by 1.11 percent and S&P BSE-IT by 1.01 percent.

Total market breadth was negative as 1,307 stocks closed with losses while 1,013 that finished with gains. Total turnover dropped to Rs 1,782.22 crore from Rs 2,039.04 crore on last Friday.

PTI