RTTNews - The Indian market reversed an early recovery and tumbled on Monday, dragged down by Reliance Industries(RIL), which took a sharp 7.5% hit, after the Bombay High Court upheld the maintainability of RNRL's plea in a legal gas distribution dispute. The court asked RIL to ensure gas supply to RNRL at $2.34 per unit for 17 years. Besides, profit taking after a 90% rally since early March and weak global cues also dented investor sentiment.
The BSE Sensex opened lower at 15,196 and rose to a high or 15,261 before falling sharply on RIL's news. After hitting the day's low of 14,807 in late trading, the Sensex recouped some of its loss to finish at 14,876, down 362 points or 2.38% from its previous close. Likewise, the S&P CNX Nifty fell 99 points or 2.17% to 4,484 and the mid-cap and the small-cap indexes on the BSE fell over 2% each. The market breath on the BSE was extremely negative. Decliners led advancers by 1876 to 767 and 58 stocks closed unchanged.
Besides the oil/gas sector, Metal stocks bore the brunt of the selling pressure after a stupendous rally in recent sessions. Hindalco tumbled 4.58% and Sterlite Industries slumped 7.61% after copper prices fell in global markets, weighed down by a stronger dollar and concerns about slowing Chinese demand over the summer.
Capital goods, realty and auto stocks also ended significantly lower, but defensive FMCG and rate-sensitive banking stocks ended firm. Banking stocks were in the spotlight amid reports about a 50-75 basis points cut in state-administered interest rates on small-savings schemes.
Tata Steel(down 4.77%), Larsen & Toubro(down 4.77%),DLF(down 4.37%), Tata Motors(down 4.01%), Reliance Communication(down 3.77%), Mahindra & Mahindra(down 3.49%), Sun Pharma(down 2.95%), Tata Power(down 2.92%), BHEL(down 2.38%), Wipro(down 2.0%) and Maruti Suzuki(down 1.92%) were the top gainers.
However, Ranbaxy Laboratories, TCS, Hindustan Unilever, Reliance Infrastructure, Grasim Industries, ACC, ITC, SBI, HDFC and NTPC ended in positive terrain.
NTPC rose 0.23% on reports that the government has asked the company to sign a gas purchase agreement with Reliance Industries for projects other than expanding the Kawas and Gandhar units.
Reliance Natural Resources surged over 22% after the favorable court verdict in the long-standing RIL-RNRL gas supply agreement dispute. Anil-Ambani-controlled Reliance Power also rallied 4.32% as investors eyed potential benefits in the form of lower raw material costs.
GIC Housing Finance rose nearly 3% after the company sold its entire stake in both LIC Mutual Fund Asset Management Company and LIC Mutual Fund Trustee Co for a total consideration of Rs 89 crore. Zylog Systems advanced 3.03% after announcing the launch of its wireless broadband services 'Wi5' in Chennai on Sunday.
Aurobindo Pharma rose 1.74% after the company's overseas subsidiary received nod for launch of a new drug in Australia. 3i Infotech tumbled 4.14% after it announced its entry into the Media & Broadcasting industry as a System Integrator to offer a unique value proposition to media and broadcasting companies.
AXIS Bank added 1.85% on deciding to close its issue of unsecured redeemable non-convertible subordinated debentures worth Rs.2,000 crore. Yes Bank ended up 0.43% on reports that it will raise $400 million by means of equity through a follow-on public offer, and debt.
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