Sensex falls for fourth session

Ignoring upbeat global cues, the BSE Sensex fell for a fourth straight session on Monday, logging a fall of 108 points as ITC slumped 6.5 per cent on concerns over higher taxation rate on tobacco products.

Global cues were largely positive on heightened expectations of a first rate increase in nearly a decade by the US Federal Reserve.

“Higher-than-expected US non-farm payroll data has strengthened the possibility for a Fed rate raise. But, this has negatively impacted the buying behaviour of domestic investors led by volatility in the rupee," said Vinod Nair, head of fundamental research at Geojit BNP Paribas Financial.

Bogged down by sustained foreign fund outflow, the index has lost 639.3 points since Wednesday.

After rising 147 points in early trade to hit a high 25,785.53, the BSE barometer slipped into the negative zone after stocks of ITC, which fell the most, led the fall and touched a low of 25,477.69.

Finally, it settled 108 points or 0.42 per cent lower at 25,530.11, its lowest level since November 18.

The NSE Nifty after rising past the 7,800-mark to touch a high of 7,825.4 points in early trade, succumbed to profit-booking and ended 16.5 points or 0.21 per cent down at 7,765.4.

ITC ended 6.57 per cent lower at Rs 313.55 on BSE after a goods and services tax panel recommended a sin or demerit rate of about 40 per cent on paan masala, tobacco and tobacco products.

Selling was also seen in other brands such as Godfrey Phillips, which plunged 4.9 per cent and VST Industries, which dipped 2.85 per cent.

In overseas stock markets, Asian and European stocks edged higher after Wall Street welcomed an upbeat US jobs report that suggested the world's biggest economy was well placed to handle an expected increase in interest rates.

Key indices in Asia, like China, Japan, Singapore and Taiwan moved up by 0.34 per cent to 0.99 per cent while indices in Hong Kong and South Korea moved down by 0.15 per cent to 0.54 per cent. Those in Europe, like France, Germany and the UK rose 0.61 per cent to 1.77 per cent.

Of the 30-share Sensex pack, 16 stocks fell while Hero MotoCorp settled steady.

Other losers were Coal India (2.24 per cent), ONGC (1.54 per cent), RIL (1.25 per cent), Maurti (0.91 per cent), Bajaj Auto (0.82 per cent), SBI (0.75 per cent), Dr Reddy's (0.46 per cent) and Vedanta (0.44 per cent).

However, Sun Pharma firmed up by 2.81 per cent, HUL 2.01 per cent, Lupin 1.41 per cent, Tata Steel 1.39 per cent, HDFC 1.20 per cent, GAIL 1.17 per cent and Wipro 0.92 per cent.

Among BSE sector and industry, fast-moving consumer goods fell 2.45 per cent followed by energy 1.07 per cent, metal 0.77 per cent, oil & gas 0.46 per cent and auto 0.20 per cent while healthcare rose by 0.77 per cent.

The total turnover fell to around Rs 2,661 crore from Rs 2,989.76 crore on Friday.