Sensex plunges 245 pts; investors eye results

The benchmark BSE Sensex on Monday fell 245 points to end below the 29,000-mark, mainly bogged by last-hour selling in health care, capital goods and technology stocks, as investors resorted to profit-booking ahead of the start of the results season on Thursday.

Exporters’ stocks fell on concerns that the strength in the rupee after inflation data could persist and hurt their revenues, brokers said.

Meanwhile, continuing the deflationary trend a fifth month in a row, inflation touched a record low of (-)2.33 per cent in March on cheaper manufactured goods and food items, prompting industry to renew its demand for a further rate cut by the Reserve Bank.

The 30-share BSE index resumed higher at 29,087.25 against the previous close of 29,044.44 points. The barometer firmed up further to the day’s high of 29,094.61, on the back of easing retail inflation.

However, selling in blue-chips in the late trade dragged the index below 29,000. It finally settled 244.75 points or 0.84 per cent lower at 28,799.69.

Of the 30-Sensex kitty, 23 stocks ended lower.

The 50-issue National Stock Exchange's Nifty slipped below 8,800 by falling 83.80 points or 0.95 per cent to close at 8,750.20. Intra-day, it hovered between 8,840.80 and 8,722.40.

Tata Consultancy Services will report its results on Thursday, while Reliance Industries will declare its results for the quarter ended March on Friday.

On Sensex the biggest losers included Tata Motors, Infosys, Axis Bank, Sun Pharmaceutical, Mahindra & Mahindra, HDFC Bank and Bharat Heavy Electricals.

Selling was so widespread that of sectoral indices, only oil&gas and fast-moving consumer goods closed slightly better, while 10 others fell.

Private sector banking stocks, in the limelight in early stages, fell on fag-end offloading. The Bankex, up by 305 points in late afternoon deals, settled in a negative zone.

Power and capital goods stocks attracted profit-booking, while the BSE Midcap, which logged a record high of 11,193.96 intra-day, and BSE Smallcap also washed out initial gains and finished in the red.

Foreign portfolio investors bought shares worth Rs 417.01 crore on Monday, from provisional data.

Jignesh Chaudhary, head of research at Veracity Broking Services, said: “After gaining for seven days in a row, the Nifty lost almost one per cent today. Profit-booking was seen in the market, which dented the Nifty movement mainly in the last half an hour. Price-sensitive stocks slipped down as war in Yemen intensified, which hammered the global equities.”