Post Session: Sensex ends below 28,000, Nifty loses 8,500 mark Analysis for Aug 11, 2015

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Continuing losing streak for third day, the Indian equities ended lower on Tuesday as weakness in Indian rupee and logjam in Parliament spooked investor"s sentiment. The market sentiment was further dented by sharp sell-off in index heavyweight, SBI, after the country's largest public sector lender reported decline in its asset quality during the first quarter.The BSE SENSEX closed at 27866.09, down by 235.63 points or by 0.84 per cent, while the NSE Nifty ended 63.25 points lower at 8462.35.

In the bearish trade, the BSE Sensex touched intraday high of 28205.12 and intraday low of 27825.83, while the NSE Nifty touched intraday high and intraday low of 8556.25 and 8441.3, respectively.

State Bank of India on Tuesday reported an increase of 6 per cent in its consolidated net profit for the first quarter ended June 30, 2015 at Rs 4,713.57 crore. The total income of the state-owned lender grew by 3.8 per cent at Rs 62,927.46 crore in Q1 FY16, from Rs 60,620.93 crore in Q1 FY15.

The delay of the clearance of crucial Land Bill and the Goods and Services Tax (GST) Bill also dented market sentiment as hindrance in reform process is likely to derail economic growth. As per media reports, Land Bill has been deferred till next Parliament session as no consensus has been reached on controversial clauses.

Traders also remained cautious ahead of key economy front lined up this week, with government set to release July CPI inflation numbers and June IIP readings this Wednesday. An ease in CPI inflation and improvement in industrial production can raise hope for a rate cut in the next policy review meet.

In line with the benchmark indices, the broader market also ended lower, with the BSE MIDCAP settling 52.85 points lower at 11502.55, while the BSE SMLCAP closed at 11919.04, down by 135.95 points or by 1.13 per cent.

Leading the decline on BSE Sensex pack were Tata Steel Ltd. (Rs. 246.90,-5.46%), State Bank of India (Rs. 269.30,-4.87%), Hindalco Industries Ltd. (Rs. 103.35,-4.22%), Tata Motors Ltd. (Rs. 369.80,-4.16%), Coal India Ltd. (Rs. 393.20,-3.85%), among others.

However, some buying were witnessed across stocks, such as Infosys Ltd. (Rs. 1104.35,+2.07%), Tata Consultancy Services Ltd. (Rs. 2603.05,+1.25%), Cipla Ltd. (Rs. 719.80,+0.62%), Wipro Ltd. (Rs. 566.25,+0.46%), Maruti Suzuki India Ltd. (Rs. 4502.10,+0.10%), among others.

On the sectoral front, metal and PSU indices emerged as top losers, losing 3.52 and 2.12 per cent, respectively, on BSE.

The Market breadth, indicating the overall strength of the market, was weak. On BSE out of total shares traded 2924, shares advanced were 953 while 1875 shares declined and 96 were unchanged.

On the global front, the Asian equities ended mostly higher, with China"s Shanghai Composite and Hang Seng settled in green amid speculation that policymakers may fasten mergers of state run enterprises to bolster growth in the world"s second biggest economy, while the People"s Bank of China devalued its currency to boost exports, leading to a record drop in the Yuan. Japan"s Nikkei 225 fell as a stronger yen limited the appeal of exporter stocks.

Story first published: Tuesday, August 11, 2015, 17:12 [IST]
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