Markets slip as buying interest wanes; Sensex below 26,000

Markets extended losses on profit taking while lack of buying interest further accentuated the fall

Markets extended losses amid profit taking while lack of buying interest by institutional investors further accentuated the fall in noon trades with the Sensex slipping below 26,000.

At 1:30PM, the 30-share Sensex was down 182 points at 25,945 and the 50-share Nifty was down 56 points at 7,734.

The markets will remain closed for trading on Tuesday, July 29, on account of Ramzan ID.

The Indian rupee was trading unchanged at 60.10 compared to its previous close of 60.10/11. Meanwhile, month-end demand for dollars from crude oil importers is likely to keep the pressure on the Indian currency.

Asian markets were trading higher with Japanese shares rising on hopes of better-than-expected earnings from domestic companies. The benchmark Nikkei ended at fresh six-month closing high up 0.46% at 15,529.40. Chinese shares surged led by banks and the benchmark Shanghai Composite ended up 2.4% at 2,178. Hang Seng was up 0.9% and the Straits Times was trading with marginal losses.

European markets were trading mixed with both the CAC-40 and FTSE trading flat with positive bias and the DAX trading 0.2% lower.

All the sectoral indices on the BSE except Consumer Durables were trading in the red with BSE Realty index being the top loser down 2.5% followed by Metal, Oil and Gas, FMCG and Bankex among others.

Index heavyweight Reliance Industries was down 1.6% after gaining nearly 5% last week while ICICI Bank was down 1.4% contributing the most to the Sensex losses.

Mortgage lender HDFC was down 1.2% on profit taking after the stock surged 8.5% last week.

TCS which had gained 6.6% last week was trading 1.3% lower.

Tata Motors extended losses and was down 1.4% after its overseas arm Jaguar Land Rover agreed to lower prices of three of its car models in China by five-seven per cent after being told it was overcharging. Prices of the Range Rover V8, Range Rover Sports V8 and Jaguar F-Type will be reduced by an average of 200,000 yuan (Rs 20.4 lakh) from August 1. Every fourth car made by Jaguar Land Rover is sold in China.

Coal India was down over 3% on talk that the company has suffered a production loss of 50 million tonne (mt) of coal due to delays in environment clearance and land acquisition.

Among other shares, MindTree is trading 3% higher at Rs 1,056, extending its Friday’s 5% rally, in otherwise weak market after the technology services firm said it has been selected by ING Vysya, a premier private sector bank, as a strategic digital partner for its next generation mobility programme.

In the broader market, the BSE Mid-cap index was trading 0.4% lower while the Small-cap index was down 0.8%.

Market breadth continued to remain weak with 1,595 losers and 1048 gainers on the BSE.