The BSE Sensex today reversed early gains and slipped by 30.20 points,the first drop for the benchmark on the opening trading day in seven years,as. losses in Reliance Industries (RIL),Tata Consultancy Services (TCS) and Infosys outweighed gains in Bharti Airtel and Sun Pharmaceuticals Industries.
Traders said direction-less investors booked profits,amid most Asian financial markets remaining closed. US stocks yesterday powered to fresh peaks during 2013’s last session.
After a better start at 21,222.19,the 30-share Sensex rolled back gains to close lower by 30.20 points,or 0.14 per cent,to 21,140.48 after 15 constituents closed down. On January 2 in 2006,Sensex had ended lower by 7.8 points.
Yesterday after market hours,government data showed India’s fiscal deficit touched Rs 5,09,557 crore during April-November,or 93.9 per cent of the annual target.
Additionally,core sector growth slowed to 1.7 per cent in November from 5.8 per cent a year ago,dampening sentiment.
The broad-based National Stock Exchange index Nifty today declined by 2.35 points,or 0.04 per cent,to 6,301.65,after touching an intra-day high of 6,327.20. Also,SX40 index of MCX Stock Exchange closed 5.17 points down at 12,577.52.
Two influential stocks with nearly 15 per cent weight on the BSE benchmark – Reliance Industries fell 0.68 per cent and Infosys slid 0.55 per cent. Other major losers were TCS,Wipro,Axis Bank,Axis Bank,Essel Propack Ltd,Tata Motors and Tata Power Ltd.
However,Bharti gained over 2 per cent and Sun Pharma nearly one per cent.
Sectorally,the BSE IT sector index suffered the most by losing 0.65 per cent,followed by Oil & Gas index (0.37 per cent) and Teck index (0.20 per cent).
Gains in stocks of realty,consumer durables,healthcare,metal,auto,banking and FMCG sectors saved the market from any major fall,analysts said.
BSE Sensex falls amid thin volumes; earnings,inflation key
(Reuters) Indian shares ended lower in a range bound session on Wednesday,the first trading day of 2014,as software stocks including Tata Consultancy Services fell on profit-taking.
Volumes on the benchmark BSE index remained thin,dropping for a second consecutive session with most global markets closed for New Year holidays.
The BSE index gained 8.9 Per cent in 2013,hitting a record high in December,helped by foreign investor flows of over $20 billion that helped offset concerns about an economy facing low growth and high inflation.
Analysts say with US Federal Reserve’s taper fears behind for now,momentum in Foreign Institutional Investor flows will be determined by third-quarter earnings and December inflation data scheduled later this month.
A lower inflation reading might encourage the Reserve Bank of India to maintain status quo on interest rates which will be seen as positive for equity markets.
“Market’s direction in 2014 would be determined by a combination of earnings,inflation and elections,” Deven Choksey,managing director,K R Choksey Securities.
Third and fourth quarter earnings are expected to be better than the first half of the current fiscal year,Choksey added.
The benchmark BSE index fell 0.14 Per cent,or 30.20 points,to end at 21,140.48.
The broader NSE index edged down 0.04 Per cent,or 2.35 points,to end at 6,301.65,closing just above the psychologically important 6,300 level.
The National Stock Exchange’s IT index,which rose to its record high earlier this week,fell 0.6 Per cent.
Tata Consultancy Services Ltd fell 0.9 Per cent,Wipro Ltd lost 1.2 Per cent,while Infosys Ltd ended lower 0.5 Per cent.
Among other blue chip stocks,Reliance Industries Ltd fell 0.7 per cent.
Apollo Tyres Ltd also declined 2.2 Per cent as investors booked profits after the stock surged 5.8 Per cent on Tuesday after a deal to acquire U.S.-based Cooper Tire & Rubber Co fell through.
Tata Motors Ltd fell 0.4 Per cent ahead of its December sales data for domestic market later in the day.
However among stocks that gained,Lupin Lab rose 0.9 Per cent after U.S. Food and Drug Administration gave a tentative approval for generic version of cholesterol drug Niacin,a form of vitamin B,on Monday.