Moneycontrol Bureau
The market fell half a percent on profit booking on Tuesday after a 3 percent rally in previous three consecutive sessions.
The 50-share NSE benchmark Nifty fell 31.05 points to 6,332.85 after hitting an intraday low of 6,307.55. The 30-share BSE Sensex closed at 21,255.26, down 71.16 points.
The broader markets, too, declined. The BSE Midcap was down 0.3 percent and Smallcap lost 0.7 percent. Declining shares outnumbered advancing ones by a ratio of 1446 to 978 on the BSE.
It was a consolidation day for the market today after a rally on BJP’s win in four state elections, feel experts. They believe the market may continue to be in consolidation mode ahead of RBI policy and FOMC meeting next week.
“The euphoria of the state election outcome did settle down as the market realised that sentiments alone can not drive the market to higher levels and you need strong fundamentals to back and support the upward move,” Gaurang Shah, Assistant Vice President, Geojit BNP Paribas Financial Services said.
Meanwhile, Prabhudas Lilladher continues to believe that the market will be rangebound for the next three months between 5950-6500 levels.
Capital goods, power and banks, which had run-up on BJP’s victory, saw huge selling pressure today. BSE Power Index plunged over 4 percent, Capital Goods lost 3 percent and Bank Index dropped 1.8 percent.
The biggest loser was NTPC that crashed 11 percent as analysts feel CERC norms on multi-year power tariffs may hurt the company's earnings by as much as 10 percent. Tata Power and Power Grid fell 1.5-3 percent.
“The multi-year tariff introduced by CERC is likely to impact revenues as power tariffs are set to get cheaper. We expect downgrades to follow for some companies in this sector,” Gaurang Shah elaborated.
Shares of Larsen and Toubro plunged 4 percent while BHEL and ICICI Bank slid 3.5 percent each. Top lender State Bank of India was down over 2 percent.
ONGC, too, declined more than 2 percent. The stock was quoting ex-dividend today. The state-run oil & gas explorer had announced a Rs 5 per share as an interim dividend.
However, technology stocks bucked the trend with the IT Index gaining 2 percent. TCS was the top gainer with a 4 percent upmove followed by Infosys and Wipro with a 1-2 percent gain.
Goldman Sachs says in FY15 revenue growth for Indian IT companies can stand at 15 percent versus 9 percent in FY13.
Index heavyweights ITC and Reliance Industries gained 1.5 percent and 0.6 percent, respectively. Two-wheeler maker Hero Motocorp surged 3.8 percent.
In the broader space, Strides Arcolab climbed 1.5 percent after the healthcare company announced a special dividend of Rs 500 per share.
Ess Dee Aluminium rose 7.6 percent on hike in foreign investment limit to 100 percent by RBI and Kajaria Ceramics gained 3.6 percent as RBI withdrew restrictions on FIIs buying.
GVK Power spiked 10 percent as GVK Hancock has received the Australian Federal Government’s approval for its Abbot Point Port Capital Dredging programme.
Hexaware Technologies soared 4 percent after the company approved the merger of the wholly owned subsidiary company, Caliber Point Business Solutions Limited (a BPO service provider) with self.
On the global front, Asian markets ended lower despite positive data from China.
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