Sensex down 65 points at over 1-month low; banks, realty, auto fall
Mumbai: Extending its losing run to the third day, the BSE benchmark Sensex Tuesday failed to build on the early gains and closed with a loss of nearly 65 points at over one-month low of 19,545.78 on fag-end selling in consumer durables and rate-sensitive banks, realty and auto shares.
The Bombay Stock Exchange 30-share barometer resumed almost stable and moved up further to a high of 19,742.70, a rise of over 130 points on buying in capital goods, oil & gas, and healthcare shares.
However, fag-end selling in select counters pulled the Sensex down by 64.70 points or 0.33 per cebt to at over one-month low of 19,545.78, a level not seen since April 30, 2013 when it had closed at 19,504.18.
The index has lost 670 points in three days now.
Bluechip stocks like HDFC, Tata Motors, SBI, RIL, HDFC Bank, Infosys and ICICI Bank mainly dragged Sensex down today.
The broad-based 50-issue CNX Nifty of the NSE declined by 19.85 points, or 0.33 percent, at 5,919.45. Also, MCX-SX flagship index, SX40, ended down by 24.84 points, or 0.21 percent, at 11,610.07.
"RBI's monetary policy in mid-June and inflation and IIP numbers in coming week shall be key triggers for market direction. Lower GDP and worries over CAD as rupee continues to face pressure, has raised concerns," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio.
After hitting 11-month lows yesterday, the rupee today strengthened by almost 32 paise to trade at 56.44-levels.
"USD/INR did correct a bit, however, equity markets did not pay any heed to it today. However, any sharper correction could result in a bounce back in stock market," said Nagji K Rita, Chairman and MD, Inventure Growth & Securities.
Asian stocks closed mixed after data overnight showed an unexpected contraction in US manufacturing activity last month. Key indices from China and Taiwan closed down while from Hong Kong, Japan and Singapore finished in positive terrain and South Korea settled stable. However, Europe was trading higher in early trades.
Europe was trading positive after data from Spain showed an improvement in the labour market and overnight rally in US stocks as investors gauged the impact of disappointing factory data on potential quantitative-easing moves by US Fed.
Turning back to the local market, 16 scrips out of the 30-share Sensex pack declined while 14 others finished higher.
Major losers from Sensex were Tata Motors (2.34 percent), SBI (2.11 percent), HDFC (1.61 percent), Sterlite Ind. (1.40 percent), Maruti Suzuki (1.33 percent) and RIL (0.95 percent).
However, Dr Reddy's Lab firmed up by 1.88 percent, followed up by Cipla (1.83 percent), Wipro (1.60 percent), L&T (1.56 percent), M&M (1.13 percent), NTPC (1.12 percent) and Tata Power (0.96 percent).
Among the sectoral indices the S&P BSE-CD fell by 1.34 percent, followed by S&P BSE Bankex (0.95 percent), S&P BSE-Realty (0.86 percent) while S&P BSE-HC rose by 1.88 percent and S&P BSE-CG by 0.77 percent.
Investors are expected to keep an eye on the impact of RBI's latest move where it extended the restrictions on gold import to other agencies in addition to banks. It is seen as a move aimed at curtailing demand for the precious metal for domestic use amid widening CAD, said traders.
Total market breadth remained negative as 1,215 stocks ended lower while 1,119 finished higher. 162 stocks ruled steady. Total turnover declined further to Rs 1,471.88 crore from Rs 1,782.22 crore yesterday.