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Rediff.com  » Business » Sensex ends on a negative note, IT major loser
This article was first published 11 years ago

Sensex ends on a negative note, IT major loser

Last updated on: October 17, 2013 16:53 IST


Photographs: Punit Paranjpe/Reuters SI Reporter in Mumbai

Key benchmark indices ended lower after a choppy session amid rangebound trades. 

The session saw software stocks come under pressure on account of profit booking in heavyweights such as TCS and Infosys, which dragged key indices lower.

The 30-share Sensex scrapped 132 points or 0.6% to end at 20,416 levels while the broader 50-share Nifty ended at 6,046 levels down by 43 points or 0.7%.

After starting on a positive note and remaining rangebound for the better part of day, key indices lost ground tracking the weakness in European stocks. 

Amid lack of any major triggers back home, weakness in US index futures also played on the sentiment leading to the sell-off.

Weakness in US index futures indicates a weak start for US stock market where lawmakers earlier reached a last minute quick-fix deal averting a default on its payment obligations. 

Stocks world over remained weak to flat after an overnight debt ceiling deal was approved by US Congress. 

The deal funds the US government only until January 15 and has raised the debt ceiling until February 7. The deal however failed to resolve fundamental issues over spending and deficits that divide Republicans and Democrats.

MSCI world equity index, which tracks stocks from 45 countries, added 0.3% and close and edged nearer to a five-year high while Europe's broad FTSE Eurofirst index fell 0.35%.

European markets are trading lower with stocks in France off the most. The CAC 40 is down 0.68% while Germany's DAX scrapped 0.58% and London's FTSE 100 is lower by 0.17%.

Asian markets finished mixed, Nikkei 225 added 0.83%, while the Hong Kong's Hang Seng and the Shanghai Composite were down 0.57% and 0.21% respectively.

At 4:01 p.m, the partially convertible was trading at Rs 61.40 against the dollar in after-noon trades. INR continued to strengthen due to dollar sale by exporters. However, month-end dollar demand is approaching which could the rupee under pressure going ahead.

On the BSE sectoral front, IT was the major loser today down 3.6%; other major losers were Capital goods, autos and realty which were down between 1- 2%.

Consumer durables, oil & gas, FMCG and PSU stocks were the only gainers among sectors on BSE.

Bharti Airtel, ONGC, Bajaj Auto, ITC and RIL were the top gainers Sensex gainers while top losers were TCS, Tata Motors, L&t, Wipro and Infosys.

Advance decline ratio marginally favoured the bears as 1240 stocks declined against an advance seen in 1222 stocks.

Market movers

Axis Bank has moved higher by 1.17% to close at Rs 1,094, bouncing back nearly 4% from intra-day’s low, on reporting a better-than-expected 21% year-on-year (yoy) jump in net profit at Rs 1,362 crore for the quarter ended September 2013 (Q2) on back of higher net interest income and other income. 

The private sector bank had profit of Rs 1,123 crore in a year ago quarter.

Nestle India jumped 3.4% after CLSA upgraded the stock to "outperform" from "sell" and raised its target price.

Bajaj Auto jumped 1.92% on reporting better-than-expected 13% yoy growth in net profit at Rs 837 cr for Q2FY14.

ONGC stock ended 2.24% higher on new oil reserves find in KG basin block.

Index heavyweight TCS came under selling pressure on profit booking, it scrapped almost 5%.

Source: source