Sensex tumbles 314 point on weak Q4 results, Fed fears

BSE Sensex tumbled by 314 points Monday to close at 27,643.88 on fresh selling pressure due to widespread profit-booking after recent gains amid lower-than-expected earnings numbers from ITC.

Mumbai: The benchmark BSE Sensex tumbled by 314 points Monday to close at 27,643.88 on fresh selling pressure due to widespread profit-booking after recent gains amid lower-than-expected earnings numbers from ITC.

Key indices declined after comments from Federal Reserve Chairwoman Janet Yellen indicated that it is on track to raise interest rate this year.

ITC on Friday reported a modest 3.65 percent increase in standalone net profit at Rs 2,361.18 crore for the fourth quarter ended March 31, owing to muted growth in cigarette business and decline in agri segment revenue.

The 30-share BSE index resumed on a shaky wicket and continued to decline to hit a low of 27,614.32. It finally settled at 27,643.88, down 313.62 points, or 1.12 percent.

The gauge had gained 148.15 points in the previous session on Friday.

Of the 30-share Sensex pack, 26 ended lower while ONGC, Bharti Airtel, Wipro and M&M advanced.

The 50-issue Nifty slipped below 8,400 level by falling 88.70 points or 1.05 percent to close at 8,370.25. Intra-day, it shuttled between 8,364.15 and 8,441.95.

Profit-booking ahead of the expiry of May contracts Thursday also affected the market sentiment.

Investors who had been accumulating stocks in the past few sessions on hopes of a rate cut by the Reserve Bank were seen trimming positions after earnings numbers from some blue-chips failed to meet expectations.

Meanwhile, Foreign portfolio investors bought shares worth Rs 211.42 crore on last Friday, while Domestic institutional investors bought shares worth Rs 237.62 crore as per provisional data released by the stock exchanges.

In the overseas, Asian stock markets were higher as key indices in Japan, China, Singapore and Taiwan ended up by 0.07 to 3.35 percent. While those in Hong Kong and South Korea were shut for a holiday.

European stocks, however, were trading lower on concerns about the state of Greece's finances.

"Prices sensitive shares traded weak on fears of earlier-than-expected US rate hikes as Federal Reserve Chair Janet Yellen indicated on Friday that the bank may raise interest rates this year...," said Jignesh Chaudhary, Head Of Research at Veracity Broking Services.

Back home, Vedanta was the biggest loser on the Sensex with a fall of 3.59 percent, followed by ITC 3.29 percent, HDFC 2.70 percent, Tata Steel 2.58 percent, Gail 2.50 percent, Cipla 2.08 percent, Tata Motors 1.82 percent, SBI 1.68 percent and Dr Reddy's 1.49 percent.

However, ONGC rose by 2.12 percent and Bharti Airtel by 1.25 percent.

Among the BSE sectoral indices, metal dropped by 1.70 percent, FMCG 1.62 percent, consumer goods 0.86 percent, IT 0.74 percent, bankex 0.69 percent and healthcare 0.60 percent.

Total market breadth remained negative as 1,531 stocks closed lower, 1,149 finished higher and 114 ruled steady.

The total turnover fell to Rs 1,974.89 crore from Rs 3,023.93 core on last Friday.

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