New Delhi: Profit booking and negative cues from two index heavyweight stocks led to a weak closing in the Indian stock markets. After opening with gains, Indian stocks soon lost ground on reports that the government has increased the share of upstream companies in total subsidies given to the oil marketing companies.
While this led to a sharp fall in ONGC shares, by the noon the correction deepened further after the State Bank of India reported a 99% drop in fourth quarter profits.
Sensex: 18,137 –1.13%
Nifty: 5,438 –1.09%
State Bank of India and ONGC led the losses among Nifty 50 shares. State Bank of India plunged by more than 8% after the bank said its fourth quarter profits almost vanished due to higher provisions. GAIL, SAIL, Hero Honda, Ambuja Cements and Ranbaxy Laboratories also lost over 3% each.
State Bank of India: Rs 2,405 –8.08%
ONGC: Rs 277 –6.42%
SAIL: Rs 145 –4.60%
GAIL: Rs 433 –4.24%
On the sectoral front, oil & gas, banking and automobile indices led the losses on the BSE. However weak raw material prices helped the FMCG index close with gains.
BSE Oil & Gas: 9,361 –3.23%
BSE Bankex: 12,162 –2.24%
BSE Auto: 9,058 –1.02%
BSE FMCG: 3,784 +0.53%
The sharp fall in State Bank of India’s fourth quarter profits further deteriorated sentiment in banking stocks. Except HDFC Bank and Bank of India, all stocks in the BSE Bankex closed the day with losses.
Bank of Baroda: Rs 861 –4.26%
Union Bank: Rs 318 –2.50%
Canara Bank: Rs 542 –2.30%
However, shares of Opto Circuits gained more than 2% after the company reported a 68% growth in March quarter profits to Rs 111 crore.
Opto Circuits: Rs 295 +2.44%
Overall, it was a mixed day for Indian stock markets. About 59% of the stocks traded on the BSE closed the day with losses.