Reliance ends rally in Indian stocks; Sensex down 0.4%

Reliance ends rally in Indian stocks; Sensex down 0.4%

New Delhi: After gaining for six straight sessions, Indian stocks retreated on Friday as sharp fall in index heavyweight stocks Reliance Industries and Bharti Airtel outweighed the gainers.

Reliance Industries slumped more than 4% after the CBI searched the house of former upstream regulator V.K. Sibal. The development comes after the Comptroller and Auditor General, in a report, alleged Reliance Industries of inflating KG-D6 block’s development costs.

While the sharp fall in Reliance Industries stock weighed on the benchmark indices, investor sentiment took a knock after reports confirmed decelerating manufacturing activity in the domestic economy. From 57.5 in May, the HSBC Purchasing Managers’ Index fell to 55.3 in June. Even though a number above 50 indicates expansion, the slowing growth in manufacturing activity raised concerns about the sustainability of economic momentum.

Sensex: 18,762 –0.44%

Nifty: 5,627 –0.36%

Investors booked profits in Hindustan Unilever after the stock rallied in the last few trading sessions. Bharti Airtel lost 2.82% after several brokerage houses reduced their ratings on the stock. Citing regulatory issues and license expenses, CLSA downgraded the stock to under-perform. Religare and Kim Eng Securities also reduced their ratings on the stock.

Reliance Industries: 859 –4.30%

Ambuja Cements: 129 –2.84%

Bharti Airtel: 383 –2.82%

Ranbaxy Laboratories: 527 –2.65%

Hindustan Unilever: 336 –2.21%

Meanwhile, the clearance of Cairn-Vedanta deal by the government has sent Cairn India shares higher. The stock gained more than 4.5% after the government, late on Thursday, gave conditional approval for the deal. DLF, Hindalco Industries, IDFC and GAIL were the other notable gainers.

DLF: 220 +4.99%

Cairn India: 325 +4.51%

Hindalco Industries: 187 +3.77%

IDFC: 135 +2.90%

GAIL India: 450 +2.15%

At the sectoral level, real estate, information technology and metal stocks led the gains on the BSE. Oil & gas and consumer durable stocks stood as major losers.

BSE Realty: 2,080 +3.01%

BSE IT: 6,147 +0.78%

BSE Metal: 15,148 +0.57%

BSE Oil & Gas: 9,038 –1.84%

BSE Consumer Durables: 6,601 –0.79%

Real estate stocks extended gains on the bourses. Buying at lower levels helped the stocks register notable gains.

Peninsula Land: 48 +5.06%

Indiabulls Real Estate: 116 +3.43%

HDIL: 164 +3.10%

Sobha Developers: 265 +2.65%

Phoenix Mills: 194 +2.27%

Unitech: 32 +2.19%

Overall, 56.97% of the stocks traded on the BSE closed the day with gains.