Bears had a firm grip on the market on Thursday, as selling in banks dragged equity benchmarks lower. The Nifty ended below 11,400-mark, while the Sensex fell over 180 points to end the day below 37,700. A weak rupee, which fell to a historic low, also added to the negative sentiment on D-Street.
Selling intensified in the last couple of hours of trade, which led to the downturn on the market. Banks fell on the back of weakness in Kotak Mahindra Bank, which faced a red flag from Reserve Bank of India for its preferential issue. Selling in the stock weighed on the banking indices.
Apart from that, selling pressure was visible among metals, which fell around 2 percent on Nifty Midcap index. Fall in shares of Vedanta dragged the metal index. Meanwhile, other sectors such as infrastructure and energy names were the other big losers.
The day began on a tepid note, following weak global cues. The fall in rupee to an all-time low of 70.39 and an opening low of 70.25 to the dollar also weighed on the stock. While there was some recovery for a brief period, resumed selling, especially in metals and banks, ensured that it was a negative end for the market.
At the close of market hours, the Sensex ended down 188.44 points or 0.50% at 37663.56, while the Nifty closed lower by 50.10 points or 0.44% at 11385.00. The market breadth is negative as 1,161 shares advanced, against a decline of 1,536 shares, while 150 shares are unchanged.
Sun Pharma, Bharti Airtel, GAIL and Dr Reddy’s Labs were the top gainers, while Kotak Mahindra Bank and Vedanta lost the most.
Stocks in news
Sun Pharma has received approval from the US health regulator for CEQUA (cyclosporine ophthalmic solution), used to increase tear production in patients with keratoconjunctivitis sicca (dry eye). The stock closed 3% higher.
Patel Engineering Company share price rallied as much as 12 percent after reporting profit at Rs 36.2 crore for the quarter ended June 2018. The company had posted a loss of Rs 4.7 crore in corresponding period last fiscal.
Shares of Kotak Mahindra Bank fell 3.6 percent as investors reacted to regulatory developments on Tuesday. Kotak Mahindra Bank's preferential issue does not meet the dilution norms, the Reserve Bank of India had said on Tuesday.
Jet Airways’ shares rose 6 percent as investors reacted to a Bloomberg report that Blackstone Group could be in talks to buy some stake in the airline’s loyalty programme. The media report, citing sources, said that the PE firm is in talks to buy a stake in JetPrivilege, its loyalty programme.
Travel company Cox & Kings share price fell 1.3 percent as the firm reported sharp decline in June quarter profit. Profit for the quarter ended June 2018 fell sharply by 34.8 percent to Rs 136.9 crore compared to Rs 210.1 crore in same period last year.
Markets in Europe climbed higher on the back of news that China is likely to hold talks with US later this month. Stoxx 600 was up 0.2 percent with the majority of the sectors in positive territory.
Meanwhile, Asian shares slipped but had erased some losses after developments around China. China announced it was planning for a new round of trade talks with the United States.