Mumbai: The BSE benchmark Sensex on Friday fell nearly 110 points on profit taking in power, metal and capital goods shares, snapping the two-day rally, amid weak global cues. The Sensex, which had gained about 215 points in last two days, opened weak and touched a low of 18,611.76 on selling in Reliance Industries (RIL), HDFC, HDFC Bank and L&T.
Interest-rate sensitive stocks from auto, banking and realty also suffered on fresh concerns over RBI's ability to cut rates in view of rising inflation data, said experts. FII outflows and dollar demand pushed the rupee 1 per cent to 53.90 against the US currency, further dampening sentiment.
FMCG major ITC after hitting a new high, closed 2.09 per cent up on better-than-expected results and helped the Sensex trim some losses to end at 18,682.31 - down 109.62 points, or 0.58 per cent over Thursday.
"The Sensex slipped 0.6 per cent due to profit booking in banking & financials, infrastructure, metals, auto and oil & gas exploration," said Sanjeev Zarbade, Vice President (PCG Research), Kotak Securities. Among 30-share Sensex, Hindalco, Jindal Steel, GAIL and BHEL lead the 24 losers. TCS shares weakened 1.14 per cent ahead of its September quarter results on Friday evening.
On similar lines, the broad-based 50-share National Stock Exchange index Nifty lost 34.45 points, or 0.60 per cent, to close at 5,684.25. Overall, the market breadth turned negative as 1,586 stocks closed with losses while 1,275 scrips ended with gains. "Stocks continued to face selling pressure throughout the trading day and pared most of yesterday s gains. European indices were mixed and Dow futures also showed mixed trends," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio.
Major Asian markets also fell around 0.5-1 per cent. Brokers said selling picked up after US markets closed in negative yesterday on weak earnings from Google and Microsoft Corp. Key indices in China, Singapore, South Korea and Taiwan fell by between 0.16 per cent to 0.78 per cent, while indices in Hong Kong and Japan rose marginally. European stocks were trading lower in their early trade as investors eyed developments on the second day of a two-day European summit.
Back home, 24 shares out of the 30-share Sensex family ended with losses while only six finished with gains. "Time correction can be expected to continue... rupee has depreciated significantly which is leading to negative sentiments," said Shubham Agarwal, Associate Vice President & Senior Technical Equities Analyst, Motilal Oswal Securities.
Major losers from the Sensex were Hindalco (2.54 pc), Jindal Steel (2.53 pc), Gail India (2.31 pc), BHEL (2.02 pc), Tata Power (1.82 pc), HUL (1.58 pc), M&M (1.57 pc), Coal India (1.57 pc), NTPC (1.31 pc), L&T (1.18 pc) and HDFC (1.17 pc). TCS (1.14 pc), Cipla (1.12 pc), HDFC Bank (1.11 pc) and Tata Steel (1.11 pc) also fell.
However, ITC led the gainers as it shot up 2.09 per cent, followed by Hero MotoCorp, Dr Reddy's and Bharti Airtel. Among the sectoral indices, the BSE-Power dropped by 1.44 per cent, followed by BSE-Metal (1.32 pc), BSE-CG (1.09 pc), BSE-Auto (0.90 pc) and BSE-Bankex (0.86 pc).
"Domestically, a lot would depend on RBI policy meeting which is scheduled to be held in the coming weeks. The ongoing results season would also continue to influence the mood on the street," said Amar Ambani, Head of Research, IIFL. The total turnover was relatively low at Rs 2,190.01 crore from Rs 2,271.04 crore on Thursday.
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