Retreating from one-week highs,the S&P BSE Sensex today closed nearly 103 points down at 19,223.28 on selling in bluechips like HDFC Bank,ICICI Bank and ITC,amid weakness in global markets ahead of US Federal Reserve’s decision over continuing monetary stimulus.
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Shares of banking,consumer durables,PSU,capital goods and power declined on renewed selling pressure. Refinery,FMCG and auto shares also moved down on profit-booking.
Sensex resumed slightly higher at 19,329.17 and hovered in a range of 19,383.61 and 19,191.37. It finally ended at 19,223.28,showing loss of 102.59 points or 0.53 per cent. It had gained by 498.71 points,or 2.65 per cent,in past 2 days.
Traders were cautious as global markets keenly awaited decisions from the US Fed,whose two-day policy-meeting starts today. Investors are looking for signals if Fed will taper USD 85 billion in monthly bond purchases after US economy showed some recovery in recent weeks,brokers said.
Reflecting the cautious mood,rupee was trading at 58.76 against US dollar,down a whopping 89 paise or 1.54 per cent.
“Weakness in global markets ahead of Fed’s decision over continuing its stimulus plan,falling Rupee and selling from FIIs kept the indices under pressure,” said Rakesh Goyal,Senior Vice President,Bonanza Portfolio Limited.
Lenders led by ICICI Bank,State Bank of India and HDFC Bank closed down. NTPC was the biggest loser in Sensex. Bharti Airtel fell over 1.6 per cent a day after Trai lowered roaming charges for calls and SMSes. However,bucking the overall weak trend,Infosys rose on hopes of a weak rupee boosting sales.
The NSE Nifty lost 36.45 points,or 0.62 per cent to end at 5,813.60. Also,SX40 index,the flagship index of MCX-SX,closed at 11,413.03,down 44.81 points or 0.39 per cent.
Globally,Asian stocks ended higher as indices in Singapore,South Korea,Taiwan and China moved up by 0.23-1.45 per cent while Japan’s Nikkei eased by 0.20 per cent. Hong Kong’s Hang Seng was flat. In Europe,France and Germany indices were trading lower.
Moving back to the local market,20 scrips out of the 30-share Sensex pack ended lower. 10 counters finished higher.
Major losers from the Sensex were NTPC (2.20 pc),Bharti Airtel (1.67 pc),Gail India (1.59 pc),HDFC Bank (1.48 pc),ONGC (1.47 pc),HDFC (1.26 pc),L&T (1.14 pc),SBI (1.02 pc) and ICICI Bank (0.95 pct).
However,Tata Steel firmed up by 2.89 per cent on good buying. It was followed by Bajaj Auto that gained 1.81 per cent,Tata Power 1.15 per cent,Infosy 1.08 per cent and Hero Motocorp 1.02 per cent.
In telecom pack,while Bharti Airtel was under pressure,others like Idea Cellular and Reliance Comm gained. RCom gained over 11 per cent.
Amar Ambani,Head of Research of IIFL,said: The released guidelines on national roaming by the TRAI has been less stringent than expected,this will help incumbent operators like RCom as there would be a negligible financial impact.”
Talking about rupee impact,Milan Bavishi,Head Research,Inventure Growth and Securities,said today’s weakness is a concern. “This coupled with the rise in international crude oil and gold prices could make the CAD situation worse. Markets are factoring this scenarios and as a result we are seeing selling pressure on higher levels,” Bavishi added.
Among the sectoral indices,S&P BSE-Bankex dropped by 1.20 per cent,followed by S&P BSE-CD (1.09 pc),S&P BSE-PSU (0.91 pc),S&P BSE-CG (0.86 pc) and S&P BSE-Power (0.64 pc).
However,S&P BSE-Metal inched up by 0.75 per cent,followed by S&P BSE-Teck (0.67 pc) and S&P BSE-IT (0.57 pc).
The market breadth turned negative as 1,161 stocks ended lower while 1,159 stocks finished higher. The total market turnover rose to Rs 1,638.35 crs from Rs 1,548.66 crore yesterday. Foreign Institutional Investors (FIIs) continued their selling as they sold net Rs 165.09 crore yesterday as per provisional data from the stock bourses.