Sensex ends below 27,400; oil shares drag

RIL, HDFC, ONGC, L&T and TCS were the major losers; dragged Sensex lower by 167 points

Markets ended lower on Friday, amid weakness in European shares, dragged by oil shares because of declining global crude oil prices. Adding to this, investors were cautious ahead of CPI and IIP data.

According to a business survey has estimated Index of Industrial Production (IIP) to increase to 2.8% for the month of October, 2014 compared to 2.5% in the same month last year and Consumer Inflation Index (CPI) to moderate to 4.5% in November, the slowest rate recorded since the data series was first published in 2012. The November CPI and October IIP data is due later today.

For the day, the Sensex ended down 251 points or 0.91% at 27,351 and the Nifty closed 69 points or 0.8% lower to end the trade at 8,224.

The slide in the broader markets was sharper with the smallcap index down 1.5% and the midcap index lost 1.3%, both underperforming the BSE benchmark index.

Health Care was the only sectoral index in the green, up 0.2%.

Meanwhile, Consumer Durables, Capital goods, Oil and Gas, Realty indices slipped over 2% each and were the top losers of the day.

Oil & Gas scrips further weakened on continued slide in global crude prices. GAIL down nearly 5% was the top Sensex loser along with ONGC and RIL down 3.5% and 2.5% respectively.

There was no respite for metal names as Tata Steel, Sesa Sterlite and Hindalco slipped 1-4%.

Financial names had a tough day with both the private and public sector banks closing the day in red. HDFC twins, ICICI Bank, SBI and Axis Bank declined 0.2-1.5%.

Depreciating rupee was not enough of a respite for the information technology stocks. Among the IT frontliners, only Infosys closed in the green, up 1%. Wipro and TCS were down 0.5% and 1.5%.

Bharti Airtel gained over 1.2% on media reports that the government is likely to include one slot for 3G services in the upcoming spectrum auction.

Sun Pharma edged higher by 0.8% on reports that the company has started working on Competition Commission of India (CCI)'s order which had placed the condition of selling seven brands from the combined entity's portfolio within six months before the sun Pharma and Ranbaxy merger takes place.

Maruti, Coal India, Hero MotoCorp and HUL up 0.2-1.3% were the only other gainers in the Sensex.

SMART MOVES

Havells India dipped for third day in a row, down 5.7% to Rs 265, after media report suggests that the company’s management has cut its FY15 guidance.

Now for the winners, Panacea Biotec gained 4.5% to 161 after the company announced that it has entered into a strategic alliance with Apotex Inc. for research, development, license and supply of two drug delivery-based generic products for US, Canada, Australia and New Zealand.

Hikal was up over 7% at Rs 752 after the company said that its board will meet on December 17, 2014 to consider stock split of equity shares.

Suven Life Science added 4% to Rs 218 after the company announced that it has secured five product patents from four countries corresponding to the new chemical entities (NCEs).

IL&FS Engineering surged 6.6% to Rs 62 after the company said Maytas Infra Saudi Arabia (MISA), a subsidiary of construction firm has received Rs 464-crore contract from Saudi Binladin Group for construction of Abraj Kudai project in Makkah in Kingdom of Saudi Arabia (KSA).

OnMobile Global is locked in upper circuit of 5% at Rs 72.60 on BSE after the company said its board approved the buyback of equity shares of the company at a price not exceeding Rs 86 per share.

The market breadth was very negative on BSE. 1991 stocks declined while 919 stocks advanced.