Moneycontrol
Feb 14, 2018 06:53 PM IST | Source: Moneycontrol.com

Sensex falls 144 pts, Midcap manages to close in the green; PNB fraud drags PSU Bank 5%

The broader markets also erased gains in last hour of trade but managed to close the session with minor gains as BSE Midcap and Smallcap indices gained 0.2 percent each.

The market failed to continue its previous trading session's gains on Wednesday as benchmark indices closed lower despite positive global cues, dragged by banks after the big transaction fraud in PNB.

The 30-share BSE Sensex rallied 173 points in opening, but soon lost those gains and fell as much as 272 points in late trade before closing down 144.52 points at 34,155.95.

The 50-share NSE Nifty traded in a range of 10,590.55-10,456.65 during the day, before ending down 38.90 points at 10,500.90.

The broader markets also erased gains in last hour of trade but managed to close the session with minor gains as BSE Midcap and Smallcap indices gained 0.2 percent each.

"Going forward, market participants will closely monitor the global developments, and crude oil prices. With last leg of results season underway, stock specific volatility is likely to continue in the near term," Jayant Manglik, President, Religare Broking said.

He advised that any correction should be considered as a good buying opportunity for investors in quality stocks; meanwhile, traders should remain cautious and avoid over leveraging their position.

On the global front, European markets traded higher, with France CAC, Germany DAX and Britain FTSE rising 0.65 percent each at the time of writing this article. Asian indexes closed mixed, with Hang Seng gaining 2.3 percent while Nikkei lost 0.4 percent.

Back home, banks caused selling pressure in the market as PSU Bank index lost 4.8 percent, Nifty Bank 1.4 percent and Private Bank index 1.16 percent after the Punjab National Bank detected some fraudulent transactions worth USD 1,771.7 million (Rs 11,333 crore) in its Mumbai branch, and the Reserve Bank of India revised NPA rules.

Punjab National Bank shed 10 percent. Bank of India and Allahabad Bank slipped 8 percent each after reporting heavy losses for the December quarter.

Among other major banks, State Bank of India, ICICI Bank, Axis Bank, Yes Bank and Bank of Baroda were down 2-4.5 percent.

Sun Pharma, which announced results after market hours, closed down 2.44 percent. The pharma major reported 75 percent degrowth in profit YoY due to exceptional tax cost.

TCS, ITC, Bharti Infratel, ONGC, Maurti Suzuki and HPCL among others were down 1-3 percent whereas Reliance Industries (up 2 percent) and HDFC & HDFC Bank (up 0.4 percent) helped the market cap losses.

Adani Ports, Tata Motors, Indiabulls Housing, Tech Mahindra, Bharti Airtel, Wipro and Coal India gained 1-3.6 percent.

Kolte Patil, NCC, Patel Engineering, Lovable Lingerie, Max Ventures and Satin Creditcare rallied 5-8 percent whereas Motherson Sumi fell nearly 3 percent after quarterly earnings.

Reliance Communications gained 9 percent as the company will convene meeting on March 6 of bondholders of USD 300 million bonds due 2020.

Indoco Remedies fell 4 percent as Goa plant has received eight observations under form 483 from the US Food and Drug Administration.

Non-banking finance companies saw buying interest. Bajaj Finance, DHFL, Edelweiss Financial, M&M Financial and L&T Finance gained 1.5-5 percent.
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