BSE Sensex posts biggest weekly fall in 8,Tata Motors,Reliance Industries share prices drop

Bucking the trend on BSE Sensex,IT share prices,led by Infosys,advanced on weak rupee.

Written by PTI | Mumbai | Published:January 3, 2014 4:32 pm

BSE Sensex fell on Friday to mark its biggest weekly fall in eight weeks as profit-booking hit blue-chips such as Reliance Industries for a third consecutive day,extending the weak start to 2014 – Tata Motors,Reliance Industries (RIL) share prices drop,Infosys Ltd rises.

After dropping 157 points in early trade amid weak global cues,the BSE Sensex,however,recouped some losses in the latter half on the back of continued strength in IT stocks to end the day with a 37-point fall.

Selling in blue chips led by auto sector on reports of lower vehicle sales and funds offloading power and capital goods shares weighed on the market sentiment,traders said.

The Sensex,which lost 289 points in past two sessions,fell further by 37 points,or 0.18 per cent,to end at 20,851.33. The gauge had touched the day’s low of 20,731.33 before sustained buying in IT,healthcare and consumer durables scrips helped trim initial losses for the index.

L&T,Tata Motors and Reliance Industries (RIL) dragged the Sensex down while Infosys,Tata Consultancy Services (TCS) and HDFC Bank were among the 11 gainers.

The broad-based National Stock Exchange index NSE Nifty fell 10 points,or 0.16 per cent,to end at 6,211.15,after touching to a low of 6,171.25. Also,SX40 index of MCX-SX closed 50.62 points lower at 12,384.67.

Brokers said the falling auto sales in December dashed hopes of investors. Tata Motors dropped 2.49 per cent after the automaker reported 42 per cent fall in December sales,while Mahindra & Mahindra Ltd lost 3.85 per cent.

A weakening trend in the Asian region after a steep fall as gauge of China manufacturing declined in December,also dampened the sentiment,they added.

Bucking the trend,IT stocks led by Infosys advanced on weakening rupee. Infosys surged 2.61 per cent while Tata Consultancy Services rose by 2.76 per cent. The rupee was trading at 62.2 versus US dollar.

Sectorally,the BSE Power sector index suffered the most by losing 1.74 per cent,followed by capital goods index (1.71 per cent),Oil & Gas index (1.27 per cent) and Metal index (1.20 per cent).

Yesterday,US stocks kicked off the new year in the red,falling in a sell-off following solid gains in 2013. The Dow Jones Industrial Average fell 135.31 points and the S&P 500 declined 16.38 points.

Shrikant Chouhan,Head-Technical Research,Kotak Securities:

Bechmark NSE Nifty opened the day on a negative note on backdrop of negative global cues from US equities and European markets sell off. It tested the support level of 6170 on the lower side before ending the session above 6200 levels.

IT and Pharma were the major gainers for the day with renewed interest in IT stocks ahead of quarterly results. Few markets have started forming the negative reversal pattern on candlestick charts but price confirmation is yet to be seen.

For Nifty important support level is at 6130 levels,which will be a major inflexion point in the market. Sustaining below 6130 will be damaging in the near term,index can drift towards 5930-6000 levels.

Sustaining above 6260 will bring back the bullishness in the index for the level of 6340 on the higher side for the coming week.

Recommendation: Investors should look to accumulate in the decline towards 6000 levels in the Nifty specific stocks. IT,pharma,capital goods remain the key sectors to invest and trade on the long side.

HIGHLIGHTS

* BSE index falls 0.18 pct; NSE ends 0.16 pct lower

* Indian shares fall for third consecutive session

* IT shares gain ahead of Infosys earnings next week

BSE Sensex post biggest weekly fall in eight; earnings in focus

(Reuters) – Indian shares fell on Friday to mark their biggest weekly decline in eight as profit-taking hit blue chips such as Reliance Industries for a third consecutive day,extending the weak start to 2014.

The benchmark BSE index has fallen in each of the three trading sessions of the new year,declining 1.35 percent after gaining 8.9 percent last year on the back of strong foreign buying.

Losses also tracked lower Asian shares after a sudden reversal in some very popular,and thus crowded,trades sparked a bout of global risk aversion.

Caution is also setting in ahead of the start of the corporate earnings reporting season,with Infosys Ltd’s results on Jan. 10.

“Q3 earnings would be slightly better than Q2. One should just focus on good quality businesses amid this volatility like ITC,Lupin” said Vivek Mahajan,head of research at Aditya Birla Money.

The benchmark BSE index fell 0.18 percent,or 37 points,to end at 20,851.33 and a weekly fall of 1.6 percent.

The broader NSE index fell 0.16 percent,or 10 points,to end at 6,211.15. It also ended down 1.6 percent for the week.

Both indexes marked their biggest weekly fall since the week ended Nov. 8.

Reliance Industries Ltd shares fell 1.2 percent,while Larsen and Toubro Ltd ended 2.3 percent lower.

Among other blue chips,ICICI Bank Ltd fell 0.8 percent,while Mahindra and Mahindra Ltd slumped 3.8 percent.

ICICI Bank has retraced almost the entire gain of 2.9 percent made in December over the last three trading sessions.

Tata Motors Ltd fell 2.6 percent after December sales fell by 42 percent to 37,852 vehicles.

Among stocks that gained,Multi Commodity Exchange of India Ltd surged 17.8 percent on acquisition hopes,after the Bombay Bullion Association said on Wednesday it was considering buying a 5 percent stake in the company.

Software exporters were also in demand ahead of Infosys Oct-Dec results next week. Infosys ended 2.4 percent higher,while Tata Consultancy Services Ltd rose 2.6 percent.

FACTORS TO WATCH

* Yen firms vs dollar and euro in short-covering rally

* Brent rises past $108; Libya,US inventories in focus

* Asia shares roiled by risk aversion; yen rallies

* Foreign institutional investor flows

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