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Sensex sheds 208 pts, banks drag post Rajan comments


TheNewsInternational Team

The market wiped out previous day’s gains on Friday, breaking psychological levels intraday on sell-off in banks post Rajan comments and auto stocks after NGT order. European markets also took a knock after fall in crude oil prices.

The 30-share BSE Sensex fell 207.89 points or 0.82 percent to 25044.43 after hitting an intraday low of 24930.43 (down 322 pts). The 50-share NSE Nifty hit day’s low of 7575.30, before closing down 72.85 points or 0.95 percent to 7610.45.

The broader markets also caught in bear grip with the BSE Midcap and Smallcap indices down 1.2 percent and 0.8 percent, respectively. About 1669 shares declined against 989 advancing shares on the Bombay Stock Exchange.

Other major reason that dampened sentiment could be consistent uncertainty over GST Bill and likely hike in Fed rates next week.

“The selling has much to do with the much-awaited Fed rate hike and some amount of frustration with our lack of reforms like [slow progress on] GST,” veteran stock broker Jagdish Malkani said.

Sanjay Dutt of Quantum Securities said that investors should go ahead and buy instead of selling their stocks.

For the week, the Sensex lost 2.3 percent and the Nifty fell 2.2 percent with the Bank Nifty down 3.6 percent.

Meanwhile, the rupee ended at 66.88 a dollar today, down 17 paise compared to 66.71 a dollar in previous session following correction in equity markets.

Copy: Market Close – 10th Dec
Created by Moneycontrol

Bank stocks saw major selling pressure, dragging the Bank Nifty 2.2 percent on comments from the Reserve Bank of India Governor Raghuram Rajan. The RBI has said that accounts under SDR (strategic debt restructuring) may attract early provisioning. RBI’s annual financial inspection process ensures clean up of bank balance sheets by March 2017. It seeks to stem discrepancy between banks in recognising bad loans. ICICI Bank plunged 3.6 percent followed by SBI, HDFC Bank and Axis Bank with 1-2 percent losses.

Auto stocks especially diesel vehicle makers lost ground after National Green Tribunal has directed centre & state governments not to buy any diesel vehicles for department use. Tata Motors, Mahindra & Mahindra, Eicher Motors and Ashok Leyland were down 2-3 percent.

Infosys was up 0.6 percent as Norway-based DNB Bank has selected company for application transformation programme. AiKiDo Framework would be applied in the 5-year deal with DNB Bank, Infosys said.

Among others, L&T, ONGC, Bajaj Auto, Bharti Airtel, Dr Reddy’s Labs, GAIL and Coal India were down 1-2 percent while Tata Steel bucked the trend, up 3.4 percent.

In the broader space, Sharon Bio Medicine gained 13.6 percent as the company received establishment inspection report for Dehradun plant and inspection report for Taloja plant is awaited.

Texmaco Rail jumped 6.7 percent on getting contracts of signaling & telecom system for dedicated freight railway. Suven Life gained nearly 2 percent on four product patents in Eurasia, Israel & Macau.

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