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Last Updated : Aug 10, 2015 10:09 PM IST | Source: Moneycontrol.com

Late sell off drags Sensex 135pts, Nifty holds 8500; SBI up

NDA‘s failure to get consensus on Land Bill in monsoon session weighed sentiment. Oil, FMCG, select technology and auto stocks dragged.


Moneycontrol Bureau


The market shed more than 1 percent in late sell off with the Nifty breaking 8500-mark intraday before showing some recovery at end. NDA’s failure to get consensus on Land and GST Bills in monsoon session weighed sentiment. Oil, FMCG, select technology and auto stocks dragged.


The 30-share BSE Sensex fell 134.67 points to close at 28101.72. The 50-share NSE Nifty hit an intraday low of 8497.80, before closing at 8525.60, down 39 points. However, the BSE Midcap outperformed benchmarks, ending flat.

Close

Though the government's failure to get Land and GST Bills passed in monsoon session is sentiment negative, the market may remain rangebound in near term, feel experts.


Rakesh Arora, Macquarie said after a smart rally, the market is looking for further triggers as RBI kept interest rates unchanged which somewhat dampened spirits; the ongoing parliament tussle is also not adding to confidence; and earnings season, too, is delivering on muted expectations.


According to him, on a positive note, monsoon is on track to be normal and India may be in for a likely bumper crop. He feels, overall, there's nowhere to go, except to follow liquidity.


Meanwhile, it was a total washout in the monsoon session of parliament today. Congress and BJP failed to strike consensus on the Land Bill report, pushing its submission to the winter session of parliament. Finance Minister Arun Jaitley accused the Congress of stalling economic progress by deliberately blocking the passage of the GST Bill in this session.


On the global front, Asian markets closed mixed with the China's Shanghai rising 5 percent on hopes of more stimulus following disappointing economic data. European markets, too, were mixed; France's CAC and Germany's DAX gained 0.4 percent each while Britain's FTSE fell 0.7 percent (at 16 hours IST). Greece is expected to secure its 84 billion euros bailout this week.


Back home, mining giant Vedanta resumed its iron ore mining in Goa after a 3-year gap. Operations resumed at its Codli mine with permissions in place to extract 5.5 million tonnes of ore. The company said it was awaiting approval on 15 other mining plans and was hoping to resume full scale operations post the monsoon. The stock lost over a percent on profit booking.


Sun Pharma lost 1.2 percent ahead of June quarter earnings (on Tuesday), which are expected to be subdued due to Ranbaxy integration. A CNBC-TV18 poll sees 0.6 percent rise in net profit to Rs 894 crore and 1.7 percent growth in revenue to Rs 6,262 crore quarter-on-quarter.

State Bank of India gained 0.6 percent as it, too, will announce its earnings tomorrow. The country's largest lender is expected to report a 4.5 percent growth in profit at Rs 3,500 crore, year-on-year.


Tata Motors shed 1.7 percent after disappointing earnings in Q1. Its consolidated net profit declined 49 percent year-on-year. UBS downgraded the stock to neutral from buy and reduced the target price to Rs 424.


Shares of Infosys, Reliance Industries, ITC, ONGC, Mahindra & Mahindra, NTPC, Coal India and Hindalco Industries were down 1-2.5 percent. However, BHEL, Maruti Suzuki and Hero Motocorp bucked the trend, up 1-2 percent. HDFC and TCS closed off day's high, up 0.55 percent and 0.75 percent, respectively.

In the broader space, Chennai Petroleum Corporation, Chambal Fertilisers, Wockhardt and Sadbhav Engineering rallied 3-15 percent on strong earnings in the quarter ended June.



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First Published on Aug 10, 2015 04:53 pm
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