Sensex erases most gains on L&T share slump, ends 9 pts up

Shrugging off firm global cues, the benchmark S&P BSE Sensex came off a two-month intra-day high to end just nine points up at 20,159.12 after disappointing results from Larsen & Toubro.
In an otherwise narrow range of trade, the 30-share index resumed lower but recovered at mid-session on firm Asian cues as well as positive European openings, reaching 20,264.90, the highest level since the close of 20,286.12 on May 17.
After L&T's Q1 results were announced, the index came off the intra-day high and settled at 20,159.12, a gain of 9.27 points, or 0.05 per cent -- its highest close since 20,215.40 on May 30. The Sensex has gained 307.89 points, or 1.55 per cent, in the past four sessions.

The 50-share CNX Nifty on the National Stock Exchange edged up 2.60 points, or 0.04 per cent, to 6,031.80. The SX40 on the MCX-SX added 12.62 points to 12,059.31.
L&T posted a 12.46 per cent decline in standalone net profit for the quarter ended June 30 on subdued revenue growth and a drop in other income.
Marketmen said the results were disappointing, particularly growth in revenue and order book. The L&T counter accounted for a drop of 70.74 points on the Sensex.

"Sentiment was hit after capital goods major Larsen & Toubro registered lower-than-expected Q1 FY14 earnings and worst margins in over 12 years," said Amar Ambani, head of research at India Infoline.

Besides L&T, which tumbled 7.46 per cent, other capital goods counters like BHEL, Punj Lloyd, Siemens and Havells India registered losses. The BSE-CG index was the top loser among sectoral indices, with a fall of 5.57 per cent.
Refinery and power segments were under selling pressure, while auto, banking and IT sectors were in demand.
Energy major RIL ended a seven-day rally, dropping 1.59 per cent to Rs 908.50. The company posted a 19 per cent jump in first-quarter net profit on Friday, mostly on the back of higher other income.