While the benchmark BSE Sensex closed down 0.53 percent at 34,134.38, the broader NSE Nifty ended 0.57 percent lower at 10,245.25.
Reliance Industries was the top drag on the index, ending down 3.5 percent.Other top laggards on the 50-scrip index Nifty were Induslnd Bank, Bharat Petroleum, UltraTech Cement and Asian Paints, finishing between 3 per cent and 7 per cent lower compared to the previous session. Except auto and financial services, all the sectoral indices closed lower. The benchmark indices took their total losses to around 3 per cent in three consecutive sessions.
The markets started the session with a positive note, with the Sensex jumping as much as 433 points, to touch an intraday high of 34,748, in early trade. However, they reversed those gains in the second half of the session.
Sharp losses in energy shares offset gains in financial services stocks. Shares in state-run oil marketing companies Indian Oil, Bharat Petroleum and Hindustan Petroleum ended 2.89 per cent, 4.5 per cent and 2.80 per cent lower respectively, contributing to a 2.5 per cent fall in the Nifty Energy index. Reliance Industries, ending down 3.5 per cent, was the top drag on the 50-scrip index.
"Markets...turned negative after concerns arose on borrowing cost of wholesale funded banks like RBL and IL&FS exposure among select private banks like IndusInd," said Viral Berawala, CIO, Essel Mutual Fund.
On the other hand, HDFC Bank shares rose 1.6 per cent, after the country's largest lender by market capitalisation posted a record quarterly profit of Rs. 5,005 crore on Saturday.
The domestic markets bucked the upbeat mood in global markets as macro concerns, including higher crude prices and liquidity crunch, continued to weigh on investors. Japan's Nikkei rose 0.4 per cent. Equity markets elsewhere in Asia also enjoyed healthy gains.
The Sensex has shed 1,028 points, or 2.9 per cent, and the Nifty 339 points, or 3.2 per cent, in three consecutive sessions.
The domestic markets have been battered by a series of issues, including higher crude prices, depreciating rupee and recent defaults at a major non-banking financial company (NBFC). Liquidity has also been facing a crunch, adding to woes.
Analysts will watch key quarterly earnings reports by major companies due later this week.
Private sector lenders ICICI Bank, Yes Bank and Kotak Bank, IT companies HCL Tech and Wipro, auto makers Maruti Suzuki India, Bajaj Auto and TVS Motor, pharmaceuticals company Dr Reddy's and telecom major Bharti Airtel are due to release their quarterly results this week.
Meanwhile, net sale of equities by foreign institutional investors (FIIs) stood at Rs. 618.26 crore on Friday, while domestic institutional investors (DIIs) offloaded shares to the tune of Rs. 2.14 crore, according to provisional data from the NSE.
(Agencies)
No comments:
Post a Comment