Mumbai: Indian stocks ended lower for the second consecutive day as investors worried over the impact of rising interest rates on corporate earnings. Unsurprisingly, rate-sensitive stocks were hammered the most.
Weak global markets also weighed on investor sentiment. While Asian markets closed lower, European stocks fell for a third day on weak corporate earnings and the continuing stalemate over the US debt limit.
Sensex: 18,432 –0.46%
Nifty: 5,546 –0.50%
Stoxx 50: 2,715 –0.87%
Bhel, Punjab National Bank, JP Associates and Hindalco led the losses in the Nifty shares.
BHEL: Rs 1,821 –4.3%
Punjab National Bank: Rs 1,118 –4.1%
JP Associates: Rs 72 –3.4%
Hindalco: Rs 172 –3.2%
Maruti Suzuki rose 3.3% after the company reported better than expected June quarter earnings. Bank of America Merrill Lynch raised the target price to Rs 1,460 from Rs 1,400. The broking house expects Maruti to witness a rebound in sales due to increased diesel engine capacity and new launches.
Maruti Suzuki: Rs 1,216 +3.3%
Sesa Goa: Rs 288 +3.2%
DLF: Rs 236 +1.5%
Reliance Communications: Rs 102 +1.3%
At the sectoral level, capital goods, power, banking and real estate stocks led the losses on the BSE. Consumer durables and FMCG are the only two sectoral indices to close the day with gains.
BSE Capital Goods: 13,146 –1.9%
BSE Power: 2,501 –1.5%
BSE Bankex: 12,562 –1.0%
BSE Realty: 2,123 –1.0%
The weak June quarter results from capital goods major BHEL sparked fears about deteriorating business environment and slowing orders. Investors sold stocks of energy equipment makers on concerns that weak macro-environment might hit earnings of these companies.
BGR Energy: Rs 434 –3.2%
Suzlon Energy: Rs 51 –2.9%
Siemens: Rs 918 –2.2%
Usha Martin: Rs 47 –2.1%
Meanwhile, shares of Marico, UltraTech Cement and Hexaware Technologies rose on robust June quarter earnings. Marico stock surged 7.3% after company reported a 15.3% rise in consolidated profit to Rs 85 crore. UltraTech Cement reported results that were better than analysts’ expectations. The company reported a 22% growth in net profit to Rs 683 crore. Read more...
Hexaware Technologies stock rose 3.6% on better than expected earnings. The company also raised revenue outlook for the current financial year. Read more...
Marico: Rs 167 +7.3%
Hexaware Technologies: Rs 82 +3.6%
UltraTech Cement: Rs 1,026 +2.2%
Overall, 50.08% of the shares traded on the BSE closed the day with losses.