RTTNews - Dramatic selling in the last hour across the sectors pulled down the Indian market sharply lower on Thursday. Earlier in the day, the market recouped all its early loss and stayed in positive territory for a while before slipping deep into the red.
Concerns that a below normal monsoon could take the country's GDP growth below 7% and considerable amount of profit taking ahead of the opening of state-run NHPC's Rs.6,000-crore IPO on Friday, weighed on market movement.
Meanwhile, India's wholesale price index stayed negative for the eighth week in a row, falling 1.58% for the 12 months to July 25 compared to a 1.54% decline in the previous week, even as a food sub-index jumped 9.7% from a year earlier, government data showed on Thursday.
The BSE Sensex which rose to the day's high of 15,970 in mid-session tumbled to 15,443 before finishing at 15,514, down 390 points or 2.45% from its previous close. Likewise, the S&P CNX Nifty fell 109 points or 2.31% to 4,585, while the BSE small-cap index shed 1.29% and the mid-cap index moved down 2.39%.
On the BSE, losers outnumbered gainers by 1607 to 1084, with 74 stocks closing unchanged. Sector-wise, auto, realty, FMCG and metal stocks bore the brunt of selling pressure, ending down by 3-4 percent.
Among the top losers, Tata Motors and Hindalco plunged over 6% each and Jaiprakash Associates, Maruti Suzuki and Hero Honda Motors plummeted over 5% each.
ACC, Sterlite Industries, Mahindra & Mahindra, ITC, Tata Steel, Hindustan Unilever, Grasim Industries, ONGC, Reliance Communication, Reliance Infrastructure, DLF and SBI are the other prominent decliners.
Among the Sensex constituents, only Sun Pharma and Wipro bucked the declining trend, rising 1.53% and 0.04%, respectively.
While news about settlement of a dispute with MedImmune, a unit of drug major Astra Zeneca, helped lift sentiment for Sun Pharma, Wipro finished firm amid reports that it is actively looking at acquisitions in emerging economies. Separately, the company expects to win some some big-ticket outsourcing deals, each valued upwards of $100 million this year despite the slowdown, reports claimed quoting the company's executive director and CFO Suresh C Senapaty.
National Aluminium shed its early gains and ended down over 2% despite speculation that Aluminium prices could reach $2,000/tonne by December on rising demand. Sterlite Industries tumbled nearly 5% following the easing of copper prices.
Oil explorer Reliance Industries fell 1.38% and ONGC tumbled 3.32%, but Cairn India rose 1.11% after crude oil price fell to near $71 a barrel in late Asian trading. On the other hand, oil-marketing companies such as HPCL, BPCL and IOC closed with modest gains on speculation they will report better earnings for the September quarter due to a revision in retail prices.
Construction and infrastructure- related firms ended down on speculation that new road projects could face hurdles due to a clause introduced in qualification norms by the National Highways Authority of India. GMR Infrastructure fell 3.17%, Nagarjuna Construction declined 3.40%, Gammon India eased 2.11% and Hindustan Construction tumbled 4.17%.
Tata Teleservices Maharashtra ended with a modest 0.70% loss after it launched GSM operations in Mumbai and across Maharashtra under the brand name 'Tata DoCoMo.' Thermax slipped 0.48% even as it bagged a turnkey contract worth $20 million from a major cement producer in Egypt.
Core Projects & Technologies fell 2.93% after its board approved raising up to Rs.1,250 crore through global depositary receipts, convertible bonds or qualified institutional share placements. India Infoline fell nearly 3% even as private fund house Citigroup Global Markets (Mauritius) hiked its stake in the company to 8.42 per cent through open market transactions.
Development Credit Bank surged up 10.92% after it recently unveiled plans to raise Rs.300 crore by issuing fresh equity shares. Allied Digital Services edged up 0.09% on reports that it is looking to buy firms in Europe and Australia as part of inorganic growth plans.
Austral Coke & Projects rose 1.56% after it acquired 1,82,000 square meters of land at Vizag, Andhra Pradesh to set up a coke plant with capacity of 600,000 metric tonnes per annum. Hindustan Dorr-Oliver ended down 1.72% despite bagging an order worth Rs.39.5 crores from Utkal Alumina International, an Aditya Birla Group company.
Textile stocks such as Arvind, Alok Industries and Welspun India ended with notable gains after the government promised to provide Rs 2,546 crore under the Technology Upgradation Fund Scheme to help the textile sector.
Jindal Poly Films rallied 6.07% after the company announced the schedule for a Rs 73-crore share buyback plan. ING Vysya Bank jumped 5.70% after its board approved fund raising plans.
Tata Steel fell 3.87% despite reporting an 18 per cent rise in its July steel sales. Sugar stocks closed mixed after a rally in the previous session.
Elsewhere, upbeat corporate earnings helped European stocks snap a 2-day loss, the other Asian markets closed mostly higher led by Hong Kong and Japan and U.S. stock futures were mixed ahead of reports on retail sales and the labor market.
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