BSE Sensex and Nifty fell on Monday, taking a breather after the Nifty scaled an all-time high last week, as software services exporters remained under pressure on worries about a stronger rupee. Idea Cellular Ltd fell as much as 14.57%, reversing earlier gains of 14.25%, after the telecom services provider said it would merge with Vodafone Plc’s Indian operations. Although traders had initially reacted positively to the news, doubts about Idea’s valuations after the merger sent shares downward, according to traders.
Still, overall sentiment remains positive on hopes for additional economic reforms from the government. India’s cabinet approved four bills to implement a planned Goods and Services Tax (GST), a government official said on Monday, paving the way for the country to implement the landmark tax reform from July.
But concerns about share valuations and a lack of big events are likely to keep trading rangebound, analysts said. “We have moved to an event vacuum stage as the quarterly results are some two-three weeks away. We have little of major events now. After testing the 9,200 levels (in Nifty), markets have little to fuel further rally. Investors are looking for bargains,” said Anand James, chief market strategist at Geojit Financial Services.
The IT sector accounted for around 50% of the losses on the Nifty50 index, led by Infosys Ltd which was down around 2%. The rupee strengthened slightly to 65.4124/4150 per dollar, not far from the near 17-month high of 65.2250 hit last week, raising concerns about overseas returns in the sector.
Among the gainers, Kotak Mahindra Bank was up 1.23 percent after the bank said on Friday that it would seek approval from shareholders to raise the foreign shareholding limit up to 49 percent.
3.30pm: BSE Sensex closed lower by 130 points, or 0.44%, to 29,519, while the Nifty 50 fell 33 points, or 0.36%, to 9,127.
3.28pm: Axis Bank shares fall 2.51% to close at Rs504.00.
2.14pm: BSE Sensex trades lower by 136 points, or 0.46%, to 29,513, while the Nifty 50 falls 36 points, or 0.39%, to 9,125 .
12.37pm: BSE Sensex trades lower by 145 points, or 0.49%, to 29,504, while the Nifty 50 falls 39 points, or 0.42%, to 9,121.
12.15pm: Logistics stocks trade higher after the cabinet approves four GST bills, including the State and Union Territories’ GST bills. Snowman Logistics rose 2.8%, GATI Ltd rose 3.5%, Allcargo Logistics Ltd rose 1%, VRL Logistics ltd 1.5%, Patel Integrated Logistics Ltd 3.5%, Transport Corporation of India Ltd 2% and Container Corporation Of India 1%.
11.50am: BSE Sensex falls by 153 points, or 0.51%, to 26,496, while the Nifty 50 falls 38 points, or 0.42%, to 9,122.
10.25am: After opening 10% higher Idea Cellular Ltd shares erased all the gains and slumped over 7% to Rs100 after CNBC TV reported that the Idea Vodafone deal done at a price of Rs 72 a share.
10.15am: Banking stocks trade lower. ICICI Bank Ltd fell 2%, Axis Bank 1.5%, State Bank of India 0.6%, Federal Bank 0.9%, Punjab National Bank 0.3%.
10.00am: Magma Fincorp Ltd shares rise 6.1% to Rs 106.40 after huge block deal. Around 28.3 million shares or 11.9% stake of the company changed hands in block deal, according to Bloomberg report. However, details of the buyers and sellers were not known.
9.50am: HCL Technologies Ltd shares rise 1% ahead of its board meeting due on Monday. The company said its board will consider share buyback.
9.40am: Smartlink Network Systems Ltd shares rise 15% to Rs 106.95 after the company said its board approved the final application for categorizing the Company as a Non-Banking Financial Company.
9.33am: BSE Sensex trades lower by 122 points, or 0.41%, to 26,369, while the Nifty 50 falls 26 points, or 0.29%, to 9,134.
9.27am: IDBI Bank Ltd shares rise 1% to Rs 76.75 after Mahesh Kumar Jain, who was managing director & CEO at Indian Bank, has been appointed as managing director & CEO of IDBI Bank.
9.25am: Bombay Dyeing & Mfg Co Ltd shares rise 1.3% to Rs 71.75 after huge block deal. Around 13.6% stake of the company changed hands in single block deal, according to Bloomberg report. However, details of the buyers and sellers were not known.
9.20am: Reliance Industries Ltd shares rise 0.11% to Rs 1302.05. The stock witnessed huge block deal in which around 12% stake or 391.20 million shares of the company changed hands in four block deals, according to Bloomberg report. However, details of the buyers and sellers were not known.
9.15am: The rupee opened at 65.39 a dollar. At 9.15am, the home currency was trading at 65.38, up 0.14% from its previous close of 65.48.
9.05am: The 10-year bond yield was trading at 6.868%, compared to its Friday’s close of 6.863%. Bond yields and prices move in opposite directions.
9.00am: South Korean won was up 0.61%, Thai Baht 0.37%, Taiwan dollar 0.36%, Singapore dollar 0.24%, Indonesian rupiah 0.16%, Japanese yen 0.13%, Philippines peso 0.07%.
With inputs from Reuters