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Sensex sinks for 6th day, down 274pts; Nifty tad above 7600


TheNewsInternational Team

Bear continued to hold their grip over Dalal Street as the market fell for sixth consecutive session Wednesday. Investors remained cautious due to uncertainty over GST Bill and volatility in oil prices. Metals, auto, pharma and banking & financials stocks saw selling pressure. Benchmark indices shed more than 4 percent in last six sessions.

The 30-share BSE Sensex lost 274.28 points or 1.08 percent to 25036.05 and the 50-share NSE Nifty tanked 89.20 points or 1.16 percent to 7612.50.

The broader markets saw major fall compared to benchmarks as the BSE Midcap was down 1.7 percent and Smallcap declined 2.2 percent. Declining shares outnumbered advancing ones by a ratio of 4:1 on the Bombay Stock Exchange.

Analysts say the long term story of India remains intact despite market falling more than 16 percent from all-time high, though uncertainty over GST may dampen sentiment in immediate term.

GST legislative issue could weigh on the market for immediate term but structural reforms taking shape, it would help the long-term India story, says Sashi Krishnan, CIO, Birla Sun Life Insurance.

According to him, there are signs of pick up in investment cycle, which would bring in the DIIs and FIIS that have been waiting on the sidelines. Stalled projects too are slowly coming on track, he adds.

Market Close – 9th Dec
Created by MoneyControl

Dr Reddy’s Labs was down 2.4 percent, extending its losses for another day as there seems to be no respite in selling even after the pharma major has submitted a response to the US health regulator on a warning letter it had received last month. The drug maker in November had received a warning letter from the USFDA relating to two of its API manufacturing plants and a formulation plant in Andhra Pradesh and Telangana.

TCS gained 1.55 percent after the Oman Housing Bank selected TCS’s BaNCS Universal Banking software to help deliver an enhanced end-customer experience and enhance operational efficiency.

BHEL rose 2.6 percent after heavy industry minister Anant Geete on Tuesday says there are no plans for divestment in the company. He further says performance of the power equipment maker has been improving and so far it has received orders worth Rs 22,000 crore in FY16.

Among others, Reliance Industries, Lupin, Bajaj Auto, Cipla, Dr Reddy’s Labs, Bharti Airtel, Hero Motocorp, Coal India, Vedanta and Tata Steel were down 2-5.6 percent.

In the broader space, Bharat Forge lost more than 4 percent on its growth concerns. At an analysts meet, the management has lowered its revenue guidance due to near-term cyclical pressures in US commercial vehicles and industrial exports. CLSA maintains sell rating with a target price of Rs 745 per share. It has also cut FYFY16-18 earnings per share (EPS) by 4-5 percent factoring in lower standalone revenues.

CESC was down 5.6 percent on subsidiary’s investment in unrelated business. New Rising Promoters Private Limited, a CESC subsidiary, has won the bid floated by The Board of Control for Cricket in India for acquiring rights and obligations to operate Pune franchise of the Indian Premier League.

On the global front, Asian equities ended lower as major markets such as Japan and China released economic data. Nikkei and Hang Seng were down 0.5-1 percent. European markets erased early gains to trade lower with DAX and CAC falling over half a percent (at 16 hours IST). Brent crude rebounded today after further fall in previous session, up 0.9 percent.

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