Sensex fell for a second straight session on Monday amid increased sales in power, metal, infrastructure and PSU stocks. Markets were hit hard as Asian shares dropped following this week’s Central Banks’ meetings in the US and Japan.
Investors, on the other hand, remained reluctant as the second part of Parliament’s Budget Session commences today. Most traders raised concerns over the passage of proposed bills and shifted focus on the main goods and Services Tax Bills.
The 30-share BSE index Sensex closed lower by 159.21 points or down 0.62% to 25,678.93 and the 50-share NSE index Nifty closed low 44.25 points or down 0.56% to 7,855.05. Power index declined most 1.43%, followed by metal 1.06%, infrastructure 1.05% and PSU 0.95%. TECk dipped 0.3% and IT 0.18%.
Top five BSE Index gainers included Bharti Airtel up 1.63%, up 1.29%, Bajaj Auto up 0.71%, HUL up 0.64% and Adani Ports up 0.61%.
Maruti down 2.18%, Reliance down 2.18%, NTPC 2.13%, ONGC down 1.85%, and Tata Steel 1.77%
Concerns over increased capex weighted on Reliance Industries, while Cairn India declined after they posted poor quarterly results.
Reliance Industries dropped despite posting one of the highest quarterly profits last posted December 2007. Much of the loss followed the company’s statement that it would raise capex by more than expected this fiscal year due to downstream operations and spending on the upcoming launch of 4G services.
Cairn India declined 4.13% after the oil and gas explorer posted losses in quarterly earnings.
Automobiles’ parts manufacturer Motherson Sumi Systems dipped 4.43% after its customer Volkswagen posted a 4.1-billion-euro operating loss due to diesel emissions fake test results scandal.
Bharti Airtel closed high 1.63% after the giant telecommunications company said it would consider a share buyback at its board meeting on Wednesday.
Provisional data from the stock exchanges showed that foreign portfolio investors (FPIs) bought shares worth Rs. 191.07 crore last Friday.
European shares edged lower on Monday after a strong week which saw a major top index hit 3-month high, with a decline in French utility (EDF) weighing heavy on the market.
The pan-European FTS Eurofirst 300 index was down 0.7 % to 1,362.58 points, a 1.6% drop from last Thursday’s Peak-the highest level since January.
Asian shares declined on Monday while the U.S dollar weakened against most major currencies as investors reaped profits from the currency’s recent gains ahead of the Fed’s and Japan’s central bank meetings scheduled for this week.
MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.4% following suit from a mixed day on Wall Street on Friday.