New Delhi: Indian stocks fell for the fifth consecutive day as concerns about raising costs came back to haunt investors. Ahead of the monetary policy meeting next week, investors sold shares of financial services and capital goods companies. Analysts expect the RBI to increase key policy rates by 25 basis points. This is expected to increase borrowing costs and put further pressure on corporate profits.
Sensex: 19,135 –0.81%
Nifty: 5,749 –0.62%
Capital goods and financial services stocks led the losses among Nifty-50 shares. With a rate hike looking imminent, shares of Larsen & Toubro and Axis Bank came under selling pressure. Cairn India gained on news that a group of ministers on the Cairn-Vedanta deal is expected to meet next week.
Larsen & Toubro: Rs 1,595 –3.92%
ONGC: Rs 306 –3.54%
Axis Bank: Rs 1,287 –3.50%
Cairn India: Rs 351 +1.64%
On the sectoral level, banking, real estate and capital goods indices led the losses on the BSE. FMCG and Healthcare, however, bucked the trend due to the defensive nature of their businesses.
BSE Capital Goods: 13,023 –2.82%
BSE Realty: 2,180 –2.64%
BSE Bankex: 13,058 –1.90%
BSE FMCG: 3,761 +1.05%
Investors sold stocks of capital goods on concerns of rising input costs and interest rates. Shares of Crompton Greaves plunged by as much as 10% after the company’s March quarter results came in lower than analysts’ expectations.
Crompton Greaves: Rs 252 –9.94%
Suzlon Energy: Rs 53 –4.58%
Praj Industries: Rs 80 –3.53%
Punj Lloyd: Rs 66 –3.19%
All stocks in the BSE Bankex index closed the day with losses. Investors sold banking stocks on concerns of falling net interest margins.
Union Bank: Rs 319 –5.78%
Bank of India: Rs 456 –5.04%
Bank of Baroda: Rs 912 –3.01%