Sensex closes 152 points lower, Nifty near 10,300, metal, telecom stocks fall
Mumbai: The benchmark Sensex fell for the second session on Wednesday, shedding 152 points to end at an over one- week low of 33,218.81 on widespread selling in metal, oil and gas, telecom and realty sectors. Investors locked in gains amid lingering worries of a spurt in oil prices and its impact on inflation and fiscal deficit, brokers said.
The 30-share index, after opening strong at 33,417.35, advanced to hit the day’s high of 33,484.70 on the back of robust foreign fund inflows. However, it succumbed to profit-booking in late afternoon trade and slumped to 33,157.68, before finishing at 33,218.81, down 151.95 points or 0.46%. This is its weakest closing level since 31 October, when it had ended at 33,213.13. The broader Nifty slumped 47 points, or 0.45%, to close at 10,303.15 after shuttling between 10,384.25 and 10,285.50.
“Market shows signs of consolidation as investors took one step back from riskier assets due to rising oil price and the resultant impact on inflation and deficit,” said Vinod Nair, head of research, Geojit Financial Services.
Foreign portfolio investors net purchased shares worth Rs461.47 crore on Tuesday, as per provisional data. Domestic institutional investors sold shares worth net Rs2,046.07 crore.
Bharti Airtel took the biggest blow in the Sensex kitty by slumping 3.73% following reports of a Qatar-based entity offloading its entire holding in the company. Other laggards included Tata Motors, SBI, Lupin, ICICI Bank, RIL, Hero MotoCorp, NTPC, Dr Reddy’s, HDFC, ONGC, Adani Ports, Infosys, Kotak Bank, Wipro, Tata Steel and ITC, falling up to 2.35%.
Public sector lender Oriental Bank of Commerce ended lower by 5.94% following deteriorating asset quality metrics. Manappuram Finance also ended lower by 3.88% after reporting a 16.6% decline in consolidated net profit for the September quarter. In contrast, Axis Bank, Asian Paints, Cipla, Sun Pharma, Coal India, Bajaj Auto, M&M, L&T, HUL, TCS, Power Grid and Maruti Suzuki gained up to 3.41%.
Sector-wise, the BSE metal index suffered the most by falling 1.55%, followed by energy (1.50%), telecom (1.49%), oil & gas (1.30%), PSU (1.21%), realty (0.99%), consumer durables (0.88%), power (0.72%), auto (0.67%), bankex (0.52%) and infrastructure (0.38%). IT and teck sector indices ended in the green. The broader markets too were in a bearish form, with the small-cap index falling 0.96% and mid-cap dipping 0.77%.
Key indices in rest of Asia declined, with Japan’s Nikkei falling 0.10%, retreating from 25-year highs, while Hong Kong’s Hang Seng shed 0.30%. Taiwan too fell 0.20% but Shanghai Composite Index inched up 0.06%. In the Eurozone, Paris CAC 40 fell 0.24% while Frankfurt’s DAX shed 0.06% in early deals. London’s FTSE was down 0.04%.