RTTNews - Despite strong Asian cues, the Indian market ended sharply lower on Monday on concerns a bad monsoon would disrupt a nascent revival in the domestic economy. Prime Minister Manmohan Singh on Saturday admitted for the first time that the weak southwest monsoon had an adverse impact on the kharif output, especially paddy, though he just stopped short of officially declaring a drought.
The BSE Sensex, which rose to a high of 15,417 in early trading, fell to the day's low of 14,902 before finishing at 15,010, down 150 points or 0.99% and the S&P CNX Nifty fell 44 points or 0.98% to 4,438.
On the BSE, the broad-based BSE 500 index declined 1.27%, the mid-cap index moved down 1.71% and the small-cap index shed 1.95%. The market breadth was extremely negative, as losers outnumbered gainers by 1801 to 849 , with 76 stocks closing unchanged.
Sectors that may be hurt by weak rains like auto, FMCG, consumer goods, and cement stocks bore the brunt of the selling pressure followed by capital goods, realty, public sector and banking stocks. On the other hand, IT stocks rose sharply after encouraging economic data underpinned hopes of a recovery in the world's largest economy.
Stock-wise, Mahindra & Mahindra(down 9.12%), ACC(down 6.52%), ITC(down 4.19%), Hero Honda Motors(down 3.80%), Hindustan Unilever(down 3.48%), Tata Motors(down 3.27%), Maruti Suzuki(down 3.09%), Grasim Industries(down 3.0%) and ICICI Bank(down 2.54%) led the decliners.
However, TCS surged up 6.02%, Wipro advanced 2.80%, Infosys rose 2.20%, Tata Power gained 2.12%, ONGC added 1.90%, Hindalco moved up 0.69% and Sterlite Industries edged up 0.50%.
Bharti Airtel fell 2.51% on worries the company will increase its offer to buy a stake in South Africa's MTN by 5-10 percent. Reliance Communications ended down 0.96% after reporting a 12% rise in its FY09 consolidated net profit.
Mundra Port and Special Economic Zone advanced 3.36% after it bagged a contract to develop a coal handling terminal at the port of Mormugao in Goa. Nucleus Software added 3.64% after it won a core banking order for their product FinnOne from Philippines- based Malayan Bank.
Cipla rose 3.17% on reports that it has the capability to supply 1.5 million dosages of Tamiflue vaccine used for treating the deadly swine flu pandemic within 4-6 weeks. Himalya International gained 2.85% after the Gujarat government allotted 22 hectares of land to the company for setting up a Rs.130-crore mega food processing plant in Mehsana.
NALCO gave off nearly 2% on reports about a delay in the implementation of its greenfield projects in overseas markets. Tantia Constructions fell 2.39% despite securing a Rs.6.99 crore contract for the construction of high level pre- stressed concrete bridge over River Tlawng in Mizoram.
Glenmark Pharmaceuticals rose 2.13% after a molecule called Crofelemer progressed to the final stage of phase III trials in the U.S. MVL was locked at the 5% upper circuit limit after the company proposed to split its existing equity shares.
On the BSE, ICICI Bank topped the traded value chart with a turnover of Rs 881.91 crore, followed by Reliance (Rs 796.26 crore), Bharti Airtel (Rs 729.81 crore), Tata Steel (Rs 714.45 crore) and Suzlon (Rs 685.87 crore).
Suzlon led the volume chart with trades of over 84 million shares, followed by Unitech (70.38 million), Mahindra Satyam (64.63 million), Ispat Industries (54.9 million) and First Source (46.63 million).
Elsewhere, while the other Asian markets except China, edged higher on Monday, with Japan rising above the 10,500 level for the first time in 10 months, European stocks fell in early trading, dragged down by banking and commodity stocks and U.S. index futures pointed towards a negative opening on Wall Street Monday morning ahead of the release of several key economic reports during the unfolding week.
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