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Sensex falls on profit taking, ends FY15 with 25% gain


The News International Team

The market saw profit booking in last couple of hours of trade on Tuesday after rising more than 200 points intraday today and 517 points in previous session on the Sensex. However, the broader markets outperformed benchmarks.

The 30-share BSE Sensex fell 18.37 points to 27957.49 and the 50-share NSE Nifty declined 1.30 points to 8491. However, the BSE Midcap index gained 0.3 percent and Smallcap rose 0.9 percent as market breadth was positive with advance:decline ratio of 1585 to 1138 on the BSE.

Experts see some consolidation in near term and advise buying quality stocks on every dip.

Incremental foreign fund flows into India will be lower this year as most global investors are already overweight on India, said Jyotivardhan Jaipuria of Bank of America Merrill Lynch.

He further said the Indian market has already got re-rated and this will be more a year of consolidation as investors wait to see earnings growth recovery and a rebound in the economy.

According to Deven Choksey, KR Choksey Shares & Securities, the Nifty will consolidate in 8200-8700 range.

For the financial year 2014-15, the Sensex rallied 24.9 percent and the Nifty spiked 26.7 percent. BSE Healthcare Index was the biggest gainer among sectoral indices, up 70 percent followed by Auto, Bank, Capital Goods and IT with 30-44 percent upside. However, Metal and Oil & Gas underperformed, falling 3-6 percent. The BSE Midcap and Smallcap indices beat benchmarks, up around 50 percent.

Today banks, technology and capital goods stocks dragged while buying in pharma, select oil and auto stocks capped the downside.

Country’s biggest lenders ICICI Bank & HDFC Bank declined around a percent, and its rival State Bank of India was down 0.3 percent.

SBI was also in focus today as the bank has approved divestment in SBI Life by upto 10 percent. VG Kannan, MD, SBI said there were no plans to sell more than 10 percent stake at this stage and stake was valued at around Rs 2500 crore.

ONGC lost ground in last hour of trade, down 2.5 percent but Reliance Industries rallied 1.8 percent as brokerage Morgan Stanley upgraded the stock to overweight from underweight and raised target price to Rs 1,062.

Oil marketing companies stocks like IOC, HPCL and BPCL surged 4-5 percent after IOC chairman, B Ashok said the company will report healthy profit in Q4. Inventory losses have been made up and currently it enjoys healthy margins on petrol cracks, he explained.

Shares of ITC, L&T and TCS saw marginal selling pressure. Infosys too lost ground, down 0.6 percent but it rallied more than 1 percent in early trade after CLSA reiterated its high conviction buy call on the stock and raised target price to Rs 2800 from Rs 2500.

However, Tata Power rallied 3.4 percent but Adani Power erased gains, down 0.4 percent. Supreme Court ruled that companies can use argument of change in international law to charge higher tariff.

Dr Reddy’s Labs gained 2 percent as CLSA has a buy rating on the stock, saying remediation efforts at Srikakulam API plant is on.

Among others, Tata Motors, Sun Pharma, HUL, Maruti Suzuki, Bharti Airtel, GAIL, Cipla and Coal India were up 1-2 percent.

In the broader space, GVK Power spiked 16 percent on media reports that the company is likely to file a draft prospectus for upto USD 250 million IPO for its airport vertical.
Road companies like Ashoka Buildcon, NCC, Gayatri Projects etc gained 2-7 percent. NHAI told CNBC-TV18 that they expect to award 9,000 km projects in FY16, adding that FY16 expenditure could triple to about Rs 75,000 crore.

HCC was up 5 percent and Valecha Engineering gained 9 percent on getting road projects. Nitesh Estates climbed 5 percent on launching High-rise Condominium project in Bangalore.

Financial Technologies shot up 13 percent as it made settlement proposal for payment default at NSEL trading platform. Gulf Oil Lubricants surged 7.5 percent on tie up with Schwing Stetter to market co-branded lubricants in India.

Firstsource Solutions jumped 6 percent as its US arm maked 8th quarterly repayment of USD 11.25 million on outstanding debt. Mastek rose 9 percent on approval from NYSE Listing Committee to list arm Majesco on NYSE.

ECE Industries rallied 20 percent as its promoter Prakash Kumar Mohta bought additional 4.1 percent stake in company via open market.

Meanwhile, the rupee closed at 62.49 a dollar today, up 18 paise compared to 62.67 level in previous session.

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