The News International Team
It was another consolidation day for the market on Wednesday. Equity benchmarks declined for the third consecutive session with the Nifty closing below the 8700 mark. The broader markets saw selling pressure as well. Metals, technology, capital goods and oil stocks led the fall.
The 30-share BSE Sensex declined 50.70 points to 28659.17 and the 50-share NSE Nifty slipped 12.10 points to 8699.95. The BSE Midcap and Smallcap indices lost 0.3-0.4 percent.
Geoffrey Dennis, head- Global Emerging Market Strategy, UBS does not expect a long-term correction in the markets.
According to him, there will be a buying opportunity in emerging markets as currently, valuations are not expensive.
Dennis is overweight on India and will buy it once the dollar settles. He says the Indian market is finding excuses for profit booking post the Union Budget and is unlikely to underperform for too long.
Hindalco Industries was the biggest loser on Sensex, down 5 percent after a special court summoned Kumar Mangalam Birla along with former PM Manmohan Singh & former coal secretary PC Parakh in the coal allocation scam case. Hindalco in a media statement reiterated that none of their officials used unlawful means to get coal blocks.
Shares of TCS, Tata Motors, Sun Pharma, Infosys, ONGC, Sesa Sterlite, Bajaj Auto, Cipla and Tata Steel were other losers among Sensex 30s, down 1-2.6 percent.
However, telecom stocks bucked the trend with the Bharti Airtel and Idea Cellular rising 6 percent each (both had rallied 7 percent and 3 percent, respectively). Reliance Communications gained 3 percent. Experts say the spectrum auction is likely to end in a day or two. However, industry body, COAI sees a significant hit on telecom companies’ balancesheet due to aggressive bidding.
Mahindra and Mahindra rallied 2.5 percent, in addition to 2 percent upside in previous session. HUL, NTPC, Dr Reddy’s Labs and GAIL were up 1-2.6 percent.
In the broader space, Shilpa Medicare shot up 6 percent as the US Food and Drug Administration inspected 2 manufacturing units at Raichur. The company awaited the approval for these units.
Sharon Bio Medicine was locked at 10 percent upper circuit on getting good manufacturing practices certificate for both, capsules and tablets from United Kingdom – Medical & Health Care Product Regulatory Agency (UKMHRA) for its expanded area of formulation and tablets unit located at Selaqui, Uttarakhand.
Steel Strips Wheels climbed over 9 percent on getting export orders from Renault Russia and European aftermarket.
However, Mahanagar Telephone Nigam plunged 19 percent and HMT lost 1 percent as fears of shut down loomed large.
About 1190 shares advanced while 1643 shares declined on the Bombay Stock Exchange.
On the global front, European markets rallied nearly 2 percent (at 16 hours IST), dismissing Fed rate hike jitters. ECB chief, Mario Draghi says financial stability risks are contained and expects the economic recovery to strengthen soon. He says real GDP expectations for the eurozone are revised upwards for 2015 & 2016.