Sensex ends 164 pts lower; Oil & Gas, Telecom, Metals drag

| June 8, 2010 | 0 Comments

The benchmark Nifty slipped into the red in the last one hour of trade and closed below an important psychological level of 5000 on the back of fall in European markets. The markets had opened marginally higher and were consolidating in the first half of trade after Monday’s sharp sell-off.

European markets like France’s CAC 40, Germany’s DAX and Britain’s FTSE were down 1.2-1.5% for the third consecutive day on rising European debt crisis. The IBEX Index (Spain) was down 1.5% and Greek’s Athex Composite was down 1.3%. Investors were still worried about recovery in European economies.

Power companies’ shares in Germany’ declined more than 3% as government announced that they will impose a tax on nuclear fuel, which will increase government revenues. EON AG and RWE AG dropped over 3%.

, metal, realty, oil & gas, technology, auto, select financials and power companies’ shares witnessed selling pressure, which dragged the Sensex down by more than 150 points. However, HDFC, ITC, , Axis Bank, Siemens, BHEL, NTPC, , and PNB were the only gainers.

Indices slipped for the second consecutive day. The 30-share BSE Sensex closed at 16,617.10, down 163.97 points or 0.98% and the 50-share NSE Nifty fell 46.90 points or 0.93% to settle at 4,987.10. The Nifty June futures ended at 22 points discount, as per provisional data.

All the sectoral indices ended in the red barring FMCG. The BSE Metal and Realty indices tumbled 2-2.5%.

Telecom companies’ shares witnessed profit booking as they rallied in the last week. Bharti Airtel, which took control of Zain Assets today, lost 3.7%. Reliance Communications was down 5% and Idea Cellular was down 2%.

was the top loser on the Nifty; tanked 6%. The company said it was looking to buy copper mines overseas. Among the other metal stocks, SAIL, Tata Steel and Sterlite Industries declined 2% each. Jindal Steel was down just 0.3%.

ONGC, Reliance Industries and Cairn India from oil & gas space lost 1% each. Oil marketing companies’ shares like BPCL, HPCL and IOC went down 3.5%, 2.5% and 1.76%, respectively. Empowered Group of Ministers deferred decision on fuel pricing in Monday’s meeting.

Wipro and HCL Tech from technology pack slipped 1.6% & 2.3%, respectively. TCS and Infosys lost 0.4-0.6%. Reliance Power and Reliance Infrastructure from power space fell 2.3-3%. Suzlon Energy and Power Grid were down 1.3-1.8% while Tata Power gained 1.7%.  M&M, Maruti Suzuki and Hero Honda from auto segment were down 1.6-2.4%. Tata Motors was down just 0.2%.

Heavyweight ICICI Bank plunged 2.9%. Among the other financial shares, HDFC Bank was down 0.7% while SBI down just 0.14%. Kotak Mahindra Bank declined 2%. However, HDFC and Axis Bank gained around 1% each.

and Unitech from the realty space lost 2.5% each. L&T and ABB from capital goods pack were down 0.7% while BHEL was up just 0.3% and Siemens up 1.4%.

ITC from FMCG segment gained 0.7% and HUL was up just 0.14%. Aviation companies like SpiceJet was up 4.6%, Kingfisher Airlines gained 3.5% and Jet Airways went up 1.6%. The broader indices declined 0.55% each. The market breadth was also negative; about 1274 shares advanced while 1813 shares declined on the BSE. Nearly 219 shares remained unchanged.

In the space, M&M Financial, Kwality Dairy, P&G, Kingfisher Airlines and Novartis India gained 3.4-8.7% while Rei Agro, Whirlpool, GTL Infra, KS Oils and Indiabulls Real fell 4-9%.

In the smallcap space, Prraneta Industries, Tata Metaliks, Everonn Education, Surana Industries and Consolidated Construction went up 5.5-9% while Mastek, TCI Industries, Kanani Industries, Centrum Finance and Gemini Communication lost 5%.

Volume was higher than previous session; the markets reported total turnover of Rs 1,01,547.13 crore. This included Rs 11,555.96 crore from the NSE cash segment, Rs 86,540.16 crore from the NSE F&O and the balance Rs 3,451.01 crore from the BSE cash segment.

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