BSE Sensex sheds 180 pts as oil rebounds,F&O expiry,GDP data eyedhttps://indianexpress.com/article/business/market/bse-sensex-sheds-180-pts-as-oil-rebounds-fo-expiry-gdp-data-eyed/

BSE Sensex sheds 180 pts as oil rebounds,F&O expiry,GDP data eyed

Profit-taking in blue-chips such as ICICI Bank hit BSE Sensex on Tuesday.

The benchmark BSE Sensex index slipped by 180 points today on selling in banking and oil&gas shares after crude prices rebounded and investors judged the gains related to the Iran deal as excessive.

Markets Top Gainers,Markets Top Losers

Lack of fresh triggers and cautious sentiment ahead of monthly derivatives expiry on Thursday and and GDP data release on Friday also led to profit-booking,traders said.

After a steep rise of 387.69 points in the previous session,the Sensex dropped by 180.06 points,or 0.87 per cent,to end at 20,425.02 — near day’s lows.

ICICI Bank,ITC Ltd,HDFC Bank and Reliance Industries (RIL) were among laggards in the 30-share Sensex. However,gains in Tata Motors,Hindustan Unilever (HUL) and Bharat Heavy Electricals Ltd (BHEL) capped its fall to some extent.

Sensex graphs November 26

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The broad-based NSE Nifty lost 56.25 points,or 0.92 per cent,to close at 6,059.10. Also,SX40 index,the flagship index of MCX-SX,closed 106.90 points lower at 12,124.35.

Investors churned portfolios ahead of the monthly futures and options (F&O) contract expiry on Thursday,analysts said.

The rupee was looking up against the US dollar as it traded at 62.44 compared to yesterday’s close of 62.50. IT stocks,including TCS and Infosys,ended lower.

Oil rose ahead of a US supply report that might show an improvement in demand. Benchmark US crude for January delivery was up and trading around USD 94.5 a barrel.

The contract had fallen on Monday after a deal between Iran and six world powers on the country’s nuclear program raised hopes that sanctions stifling Iran’s oil exports would soon be lifted.

Sectorally in the BSE,the Banking index suffered the most by losing 1.52 per cent. Oil and Gas index shed 1.23 per cent. In oil pack,besides RIL,others including ONGC,GAIL,BPCL,HPCL and IOC failed to sustain yesterday’s gains.

PSU index,which contains some oil firms,was down 1.36 per cent. FMCG index declined 1.14 per cent,followed by Realty index (0.92 per cent).

Sensex graphs November 26

Globally,stock markets traded sideways ahead of data release related to house prices and consumer confidence,and Thanksgiving holiday in the US.

HIGHLIGHTS

* BSE index falls 0.87 pct; NSE ends 0.92 pct lower

* Indian banks’ USD debt slumps on S&P’s IDBI downgrade

* Stocks excluded from MSCI India index fall

Indian shares fall on profit taking; bank stocks slump

(Reuters) Profit-taking in blue-chips such as ICICI Bank hit Indian shares on Tuesday,reversing some of the previous session’s gains on doubts about how quickly the Iranian nuclear accord would translate into higher supplies that pressure oil prices.

Lenders,who had been among the leading gainers on Monday,also fell after Standard & Poor’s downgraded state-run IDBI Bank Ltd,sparking worries about more downgrades in the sector.

Caution also prevailed ahead of the expiry of November derivatives contracts on Thursday and July-September gross domestic product data on Friday.

“Valuations are not undemanding anymore and therefore I would be slightly cautious on markets at current levels,” said Dipen Shah,head of Private Client Group Research,Kotak Securities.

“Upcoming GDP data would re-calibrate estimates but more importantly one should look out for reforms getting executed at ground level,” he added.

The broader NSE index fell 0.92 percent,or 56.25 points,to end at 6,059.10,after gaining 2 percent on Monday.

The benchmark BSE index fell 0.87 percent,or 180.06 points,to end at 20,425.02.

Banks were among the day’s leading decliners,with ICICI Bank Ltd down 2.9 percent after gaining 5.3 percent on Monday. HDFC Bank Ltd ended 1 percent lower.

IDBI Bank Ltd fell 1.5 percent after S&P downgraded the lender’s rating to below investment grade citing expectations for weaker asset quality.

IDBI’s offshore debt tumbled,with the yield on 2019 bonds widening 30 basis points.

Shares in other state-run lenders also fell,with their dollar-denominated bonds tumbling as well. State Bank of India ended 1.2 percent lower.

State-run oil companies fell on profit taking,with Hindustan Petroleum Corp ending down 4.7 percent after surging 5.7 percent on Monday.

Indian Oil Corp fell 2.4 percent while Bharat Petroleum Corp ended 6.5 percent lower.

Shares that will be excluded from MSCI indices,starting on Wednesday,also tumbled on the last day when investors could sell the shares.

Bank of India Ltd fell 5.2 percent while Canara Bank Ltd ended 5.8 percent lower. Both will be excluded from MSCI India index after the close of markets on Tuesday.. Among other MSCI exclusions,Wockhardt Ltd fell 4.3 percent while Unitech Ltd slumped 8 percent.

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However,Yes Bank Ltd rose 3.2 percent ahead of its inclusion in MSCI India index.

FACTORS TO WATCH

* Dollar weakens,pushes euro towards recent peaks

* Oil holds near $111,timing of Iran exports unclear

* Asia stocks rise for 3rd day,oil prices stabilise

* Foreign institutional investor flows

Sensex graphs November 26