Sensex slumps to 1-month low; down 49 points as RIL falls
Mumbai: Absence of big-bang announcements, including 4G launch-related, at Reliance Industries AGM and rupee plunging to 57-level cast a shadow on stock market Thursday with BSE benchmark Sensex closing at 5-week low of 19,519.49.
The 30-share index resumed almost stable but moved down to a low of 19,395.32, down by about 173 points. However, it later recovered to touch a high of 19,635.37 but finally closed at 19,519.49, a loss of 48.73 points or 0.25 percent.
After gaining nearly 3 percent yesterday, Sensex heavyweight RIL dipped by 1.03 percent Thursday. While it announced an investment of Rs 1.5 lakh crore in core business of petrochemicals and oil and gas as well as in retail and telecom sectors in the next 3 years, investors booked profits.
Besides RIL, fall in other key stocks like Infosys, HDFC Bank, Bharti and Sun Pharma weighed on the market sentiment.
Banks, realty and capital goods stocks saw some buying.
The 50-share CNX Nifty of the NSE eased by 2.45 points, or 0.04 percent, to 5,921.40. Also, MCX-SX flagship index, SX40, ended down by 19.52 points at 11,596.32.
Brokers said besides concerns of capital outflow as rupee touched 57 level against the dollar intraday Thursday, a down-trend trend in the Asian region and lower opening in European market hurt the trading sentiment here.
Asian stocks closed lower Thursday on steep fall on Wall Street yesterday after US jobs and factory data missed estimates and investors speculated whether the Federal Reserve will scale back bond purchases. Key benchmark indices in Hong Kong, China, Japan, Singapore and Taiwan shed up to 1.54 percent.
However, European markets were trading marginally higher.
Key indices in UK, Germany and France inched up by 0.11 percent to 0.33 percent.
Moving back to the domestic market, 19 scrips out of the 30-share Sensex finished lower while 10 scrips firmed up. ITC ruled steady.
Major losers from the Sensex pack were Bharti Airtel (2.17 pc), Sun Pharma (1.87 pc), NTPC (1.85 pc), Infosys (1.41 pc), Tata Steel (1.30 pc), Hero Motocorp (1.27 pc), BHEL (1.16 pc), Dr Reddy's Lab (1.16 pc), Sterlite (1.09 pc) and Gail India (1.08 pc).
"Reliance Industries in its 39th AGM held Thursday said that the company continues to debt-free and expects to be among the top five petrochemical majors. The stock was down by over a percent," Nidhi Saraswat-Senior Research Analyst, Bonanza Portfolio Limited.
However, ICICI Bank firmed up by 1.70 percent, followed by Wipro (1.38 pc), Maruti Suzuki (1.19 pc) and SBI (0.86 pc).
"Overall, on the daily charts the trend has recently turned down. And Nifty has made lower tops and lower bottoms on the daily charts. So we could see profit booking in Nifty on the higher levels. Nifty has resistance at psychological level of 6000. On the downside, 5830 is a support," said Nagji K Rita, Chairman & MD, Inventure Growth & Securities.
Among the sectoral indices, the S&P BSE-HC dropped by 1.19 percent, followed by S&P BSE-Oil&Gas (0.72 pc), S&P BSE-Power (0.59 pc) and S&P BSE-Metal (0.41 pc). However, S&P BSE-Bankex (0.83 pc) and S&P BSE-Realty (0.48 pc) ended up.
Market breadth remained negative as 1,226 stocks settled lower while 1,140 ended higher. Total turnover fell to Rs 1,688.62 crore from Rs 1,720.27 crore yesterday.