Sensex falls for fourth straight session, down 108 points; ITC slumps 6.5%

Falling for the fourth straight session, the benchmark BSE Sensex today slipped by 108 points to close at a three-week low of 25,530.11 led by a fall in ITC after a GST panel suggested 40 percent tax rate for demerit goods like pan masala and tobacco.

Mumbai: Ignoring upbeat global cues, the BSE Sensex fell for a fourth straight session Monday logging a fall of 108 points as cigarette maker ITC slumped 6.5 percent on concerns over higher taxation rate on tobacco products.

Global cues were largely positive on heightened expectations of a first rate hike in nearly a decade by the US Federal Reserve.

"The higher-than-expected US non-farm payroll data has strengthened the possibility for a Fed rate hike. But this has negatively impacted the buying behavior of domestic investors led by volatility in the rupee," said Vinod Nair Head Fundamental Research at Geojit BNP Paribas Financial.

Bogged down by sustained foreign fund outflow, the market benchmark index has lost 639.30 points since Wednesday.

The BSE barometer after rising 147 points in early trade to hit a high 25,785.53 slipped into the negative zone after stocks of ITC led the fall and touched a low of 25,477.69.

Finally, it settled 108 points or 0.42 percent lower at 25,530.11, its lowest level since November 18.

The NSE Nifty after rising past 7,800-mark to touch a high of 7,825.40 points in early trade, succumbed to profit-booking and ended 16.50 points or 0.21 percent down at 7,765.40.

ITC ended lower by 6.57 percent to Rs 313.55 on BSE after a GST panel recommended a sin or demerit rate of about 40 percent on paan masala, tobacco and tobacco products.

Selling was also seen in other brands such as Godfrey Phillips, which plunged 4.90 percent and VST Industries, that dipped 2.85 percent.

In overseas stock markets, Asian and European stocks edged higher after Wall Street welcomed an upbeat US jobs report that suggested the world's biggest economy was well placed to handle an expected increase in interest rates.

Key indices in Asia, like China, Japan, Singapore and Taiwan moved up by 0.34 percent to 0.99 percent while indices in Hong Kong and South Korea moved down by 0.15 percent to 0.54 percent.

Key indices in Europe, like France, Germany and the UK rose by 0.61 percent to 1.77 percent.

"Markets made a strong opening in line with Asian markets

traded after strong US jobs data which strengthened expectations of Fed rate hike later this month. But shed all the day?s gains during mid-trade on the back of continued sell-off by foreign portfolio investors," said Gaurav Jain Director Hem Securities.

Of the 30-share Sensex pack, 16 stocks fell while Hero MotoCorp settled steady.

Other losers were Coal India 2.24 percent, ONGC 1.54 percent, RIL 1.25 percent, Maurti 0.91 percent, Bajaj Auto 0.82 percent, SBI 0.75 percent, Dr Reddy's 0.46 percent and Vedanta 0.44 percent.

However, Sun Pharma firmed up by 2.81 percent, HUL 2.01 percent, Lupin 1.41 percent, Tata Steel 1.39 percent, HDFC 1.20 percent, GAIL 1.17 percent and Wipro 0.92 percent.

Among BSE sector and industry, FMCG fell 2.45 percent followed by energy 1.07 percent, metal 0.77 percent, oil&gas 0.46 percent and auto 0.20 percent while healthcare rose by 0.77 percent.

The market breadth turned positive as 1,446 ended higher, 1,316 finished lower while 162 ruled steady. The total turnover fell to around Rs 2,661 crore from Rs 2,989.76 crore on Friday.