Sensex sinks 313 points on worries over lower earnings
The benchmark BSE Sensex plunged over 313 points Monday to settle at 27,643.88 and the Nifty dived below the crucial 8,400 mark due to widespread profit-booking after recent gains amid lower-than-expected earnings numbers from ITC.business Updated: May 25, 2015 17:01 IST
The benchmark BSE Sensex plunged over 313 points Monday to settle at 27,643.88 and the Nifty dived below the crucial 8,400 mark due to widespread profit-booking after recent gains amid lower-than-expected earnings numbers from ITC.
Renewed fears about an earlier-than-expected US rate hike weighed on sentiment too, brokers said.
The 30-share BSE index resumed on a shaky wicket and continued to decline to hit a low of 27,614.32 as selling intensified before settling at 27,643.88, down 313.62 points, or 1.12%.
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%, to close at 8,370.25. Intra-day, it shuttled between 8,364.15 and 8,441.95.
Investors who had been accumulating stocks in the past few sessions with hopes of a rate cut by the Reserve Bank of India were seen trimming positions after earnings from some blue-chips failed to meet expectations of the Street.
Shares of diversified group ITC fell 3.29% after its March quarter earnings did not cheer investors.
ITC on Friday reported a modest 3.65% rise in standalone net profit at Rs 2,361.18 crore for the fourth quarter that ended March 2015.
Vedanta lost most among Sensex and Nifty stocks, which tumbled 3.59% to Rs. 200, as Goldman Sachs said in its report that copper demand will fall in coming 12 months on weak commodity demand growth in China, lower oil prices and a a stronger dollar.
Other major losers were HDFC, Tata Steel, GAIL, Cipla, Tata Motors, SBI, Coal India, Dr Reddy's Lab, Hindalco, Axis Bank, L&T, Hind Unilever, Tata Power, Infosys, RIL, NTPC, TCS, Hero MotoCorp, ICICI Bank, Bajaj Auto and BHEL.
The broader markets too saw profit-booking by investors. The BSE smallcap index ended the day with a fall of 0.22% while the midcap index was down 0.08%.
A weak trend at European markets in the morning session and a hardening dollar after the US Federal Reserve indicated that the central bank is on track to raise interest rates this year dampened sentiment.
Sector-wise, BSE metal index suffered the most by falling 1.70%, followed by FMCG (1.62%), capital goods (0.87%), IT (0.74%), banking (0.69%), healthcare (0.60&), realty (0.45%), auto (0.28%) and power (0.16%).
Last Friday, foreign portfolio investors and domestic institutional investors (DIIs) net bought shares worth Rs. 211.42 crore and Rs. 237.62 crore, respectively, according to provisional stock exchange data.