The News International Team
The 30-share BSE Sensex fell 133 points on Friday ahead of Delhi elections (to be held on Saturday), continuing weakness for the sixth consecutive session.
Traders worried that elections in the national capital may show loss of popularity for the ruling BJP and become a drag on the awaited reforms, while Arvind Kejriwal-led Aam Aadmi Party (AAP) may go for populist measures, if it comes to power.
But experts do not think the Delhi elections results will have any major impact on market. According to them, the disappointed earnings are clearly weighing on the market now.
Prakash Diwan of Altamount Capital Management says any party coming to power in Delhi will not alter what the Central government wants to do in the Budget.
The BSE Sensex closed at 28717.91 while the NSE Nifty failed to hold the 8700 level, down 50.65 points to 8661.05. The broader markets underperformed benchmarks with the BSE Midcap and Smallcap indices falling 1 percent and 1.8 percent, respectively.
Caution also prevailed ahead of the GDP and inflation data due next week after the RBI held interest rates steady on Tuesday, leaving its next move probably until after the government’s annual Budget on February 28.
For the week, the Sensex was down 1.6 percent and the Nifty fell 1.7 percent while the CNX Midcap lost 2.9 percent. Bank Nifty tanked 5.3 percent after disappointing earnings during the week.
Banks, auto, oil & gas, power and select metals stocks dragged the market down while FMCG and IT bucked the trend.
Tata Motors was the top loser on Sensex throughout the session, down 5 percent on disappointing numbers in Q3. JLR margins came in below estimates while the standalone business too was hit by one-off provisions. Barclays, however, reiterated its overweight rating with a lower target, saying the third quarter missed does not deter their FY16 outlook.
BHEL dropped 4.8 percent ahead of earnings next week. Tata Steel fell 2.7 percent ahead of its third quarter numbers today.
GAIL India was down 1 percent. Earnings, which announced after market hours, disappointed street as Q3 net profit fell 53.6 percent quarter-on-quarter to Rs 604 crore due to weak operating income.
Among others, shares of Sun Pharma, Reliance Industries, M&M, ONGC, Hero Motocorp, Cipla, Coal India and Tata Power were down 1-3 percent. However, HDFC topped the buying list on Sensex, up 2.5 percent.
Technology stocks continued to see buying interest for the second consecutive session. Infosys, Wipro and TCS gained 0.7-1.6 percent. ITC, Bharti Airtel and Sesa Sterlite were other prominent gainers, up over a percent.
Declining shares outnumbered advancing ones by a ratio of 2004 to 866 on the Bombay Stock Exchange.
Global markets were mixed ahead of the US jobs report. Crude bounced back with the Nymex futures rising 3.65 percent to USD 52.32 a barrel while Brent crude traded at 58.5 a barrel, up 3.5 percent.