NEW DELHI: Equity benchmarks Sensex and Nifty extended losses for a third consecutive session on Thursday on selling in select FMCG, telecom, bank, financial and auto stocks amid surge in crude oil prices.
Market sentiment remained subdued on weakening macro situation as Brent oil rose to $80 per barrel, fueling concerns over broadening fiscal deficit and inflation, while mixed Q4 earnings did little to lift market mood.
Global cues were also less favourable in light of political developments in Italy, as two major populist parties of the country decided a draft proposal, which may decide the fate of country’s relationship with the rest of Europe.
The Sensex finished at 35,149, down 239 points or 0.67 per cent, with 10 stocks advancing and 20 declining. One stock remained unchanged in the index.
The Nifty50 settled 58 points or 0.54 per cent down at 10,683, with 13 stocks in the green and 36 in the red. One stock remained unchanged in the Nifty pack also.
However, midcaps and smallcaps outperformed Sensex, closing with gains of 0.67 per cent and 0.43 per cent, respectively.
“Market traded in a negative bias despite gains in rupee while investors focus is now shifting to earnings after the state election dilemma. Small & mid cap outperformed owing to good set of results and value buying opportunity. On the global front, US yield rose above 3% mark, whereas oil remains at elevated levels which could dampen the flow of funds to EMs, especially to India were the valuation is comparatively high,” said Vinod Nair, Head of Research, Geojit Financial Services.
Coal India, Sun Pharma, Tata motors and Wipro emerged as the top Sensex gainers of the day.
ITC, Bharti Airtel, HDFC, Tata Steel and Axis Bank remained the top losers in the Sensex kitty of stocks.
Shares of ITC declined even as it reported on Wednesday a 10 per cent YoY rise in Q4 profit.
FMCG major ITC on Wednesday posted a 9.86 per cent year-on-year rise in profit at Rs 2,932.71 crore for the quarter ended March.
Shares of Tata Steel reacted negatively to reports that it will take on board employees of Bhushan Steel as part of a debt resolution plan.
Shares Reliance Communications skyrocketed 57 per cent, buoyed by news reports that the company and Ericsson AB may settle the outstanding debt directly without going through the insolvency process.
Other stocks of the Anil Dhirubhai Ambani Group (ADAG) also zoomed on Thursday. Reliance Naval and Engineering (up 33.07 per cent), Reliance Power (6.75 per cent), Reliance Capital (4.64 per cent) and Reliance Infrastructure (3.21 per cent) pocketed strong gains.
Among the sectors, consumer durables bucked the trend, closing with a gain of 1.37 per cent. Capital goods, telecom and industrials also closed the day with mild gains.
Bank, FMCG, metal, energy and basic materials remained the top losers among the sectoral indices on BSE.
Source: Economic Times