Markets drop 0.4%; Idea Cellular slides

Markets drop 0.4%; Idea Cellular slides

Mumbai: Markets dropped 0.4% on Tuesday amid weak Asian peers as market players opted to lock in gains after the sharp rise in recent sessions. Financials led the losses.

Idea Cellular fell as much as 3.7% after the Delhi High Courtcourt directed the country’s fifth-biggest mobile carrier to seek prior permission from the telecoms ministry for transfer of six telecoms licences it gained from the acquisition of a smaller rival.

At 11:23am, the 30-share BSE index was down 0.36% at 18,747.56 points, with 21 components declining. It had started higher. The 50-share NSE index was down 0.4% at 5,629.55.

The index has gained 7.7% since mid-June.

“The rally was too sharp and too fast. It is quite natural that profit sales would come in after that," said Ambareesh Baliga, chief operating officer at Way2Wealth Securities.

“The speed at which the money has come in, it gives a feeling it is here only for a short term."

In the six sessions to Friday, foreign funds have bought Indian shares worth $1.7 billion, as risk was back in favour on some relief over Greece’s debt situation.

Around 204 million shares changed hands on NSE, with gainers and losers almost equal in number.

Financials declined, with the banking sector index erasing 0.6%, after gaining 1.1% in the previous session.

Leading lenders State Bank of India , ICICI Bank and HDFC Bank fell between 0.5% and 0.7%.

The MSCI’s measure of Asian markets other than Japan was down 0.3%, while Japan’s Nikkei edged 0.1% higher.

STOCKS

JK Tyre & Industries was up 1.1% at 101.40 after the tyre maker said it had raised prices of tyres by 2-3%.

KNR Constructions firmed 1.8% to 129,75 after it said late on Monday it has got orders worth 580 crore.

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