RTTNews - As weak Asian markets dampened investor sentiment, the Indian market ended sharply lower on Monday despite the release of a positive GDP report for the June quarter. Considerable amount of profit taking following the gains in the past seven successive sessions also weighed on market movement.
Lifted by government's stimulus measures, India's GDP grew 6.1 percent during the first quarter of this fiscal year from 5.8 percent in the previous quarter ended March, data released by the Central Statistical Organization showed. The domestic economy logged 7.8 percent growth in the year-ago quarter.
IT stocks bore the brunt of the selling on concerns about economic recovery in the U.S, followed by metal, oil/gas, capital goods and FMCG stocks, while realty stocks bucked the declining trend with around 3% gains. The auto index also ended up over 1% and the public sector and consumer durable indexes closed on a flat note.
After moving in a range of 15,821-15,590, the BSE Sensex finished at 15,667, down 256 points or 1.61% and the S&P CNX Nifty fell 70 points or 1.48% to 4,662. However, the BSE mid-cap index moved up 0.33% and the small-cap index rose 0.51%. The market breadth on the BSE was fairly positive, with 1648 gainers versus 1154 losers.
Among the major decliners, Tata Steel, Reliance Industries, Hindalco Industries, Sterlite Industries, and Larsen & Toubro ended down around 3% each.
Infosys, TCS, Wipro, ITC, Bharti Airtel, Tata Power, SBI, Reliance Infrastructure, Reliance Communication and ICICI Bank were the other prominent losers.
On the other hand, Mahindra & Mahindra rose 4.15%, DLF gained 2.67%, NTPC advanced 1.19% and Maruti Suzuki added 1.03%. Grasim, HDFC Bank, ONGC and Hero Honda Motors also ended on a positive note.
Tech Mahindra gained 3.45%, but Wipro fell 2.37% on reports they have been shortlisted for a $400 million outsourcing contract from mobile operator Loop Telecom. NTPC rose 1.19% on reports it would hit the capital market early next year with a follow-on public offer to raise around Rs.6,000 crore for its expansion plans.
Suzlon Energy edged up 0.11% on reports it is in talks with potential buyers for selling a 61.28 percent stake held in its gear box manufacturing subsidiary, Hansen Transmission.
Maytas Infra hit the 5% upper circuit limit after the government approved change in the management of the crisis- ridden firm. IL&FS, the new promoter of Maytas, which has been permitted to appoint four directors including chairman in Maytas, surged up nearly 16%.
Parsvnath Developers rose 0.93% after it received approval from the Haryana government for a township project in the state. Satyam Computer Services rallied 6.85% on reports it may restate its accounts by the end of this year.
Supreme Infrastructure India was locked at the 10% upper circuit limit on bagging an order worth Rs 236.31 crore for the construction of a multi-storied complex in Haryana.
Cairn India added over 2% after the company began pumping crude from its Mangala oil field in Rajasthan. ONGC edged up 0.51% after it discovered gas at a block in the north-eastern state of Tripura.
Sterlite Industries fell 3% on the back of a 2% decline in copper prices in Shanghai. Kingfisher Airlines rose 1.05% after its board approved raising an additional $100 million through various means, including global depositary receipts.
Bajaj Hindusthan rallied 4% after the company contracted to import additional 4 lakh metric tonnes of raw sugar for refining during the forthcoming sugar season 2009-10. Unitech climbed 7.72% ahead of its inclusion in the Morgan Stanley Capital Index from today.
Elsewhere, weakness in Chinese stocks and lower commodity prices dragged down the other Asian and European markets. China's Shanghai Composite index plunged nearly 7% to a three-month low on renewed concerns over a potential tightening of liquidity and apprehensions that banks will cut back on their lending. The U.S. stock futures point towards a negative opening on Wall Street Monday morning.
For comments and feedback: contact email@example.com