New Delhi: Indian stocks fell for a third straight day after a weak showing from Wipro and cement firms dampened investor sentiment. After opening on a positive note, Indian stocks soon lost ground after Wipro said revenue growth might remain flat in the June quarter.
Sensex: 19,448 –0.49%
Nifty: 5,833 –0.59%
Profit booking in cement stocks also weighed on sentiment. Investors sold cement stocks on concerns of excess capacity and rising input costs. ACC and Ambuja Cements, which declared their third quarter results on Tuesday, reported a sharp contraction in January-March quarter operating margins. Even though realizations improved during the quarter, several brokerages downgraded the stocks of cement makers.
Ambuja Cement: Rs 150 –4.63%
JP Associates: Rs 96 –3.16%
Wipro: Rs 450 –3.13%
ACC: Rs 1,108 –1.46%
Reliance Industries also lost ground after reports suggested that the government is considering imposing a penalty on the company for falling short of targeted gas production at its KG D6 block. (Read more)
Earlier in the day, Goldman Sachs downgraded the Reliance Industries stock to neutral on concerns about lack of clarity on sustainable growth drivers. ONGC, on the other hand, gained after Goldman upgraded the stock to buy on improving oil realizations and volume growth.
ONGC: Rs 310 +2.27%
Reliance Industries: Rs 987 –1.34%
Real estate, metal, power and banking indices led the losses on the BSE. Investors sold real estate stocks ahead of the RBI policy review meeting where the regulator is expected to hike policy rates.
BSE Realty: 2,307 –1.65%
BSE Metal: 15,560 –0.97%
BSE Power: 2,702 –0.80%