Stocks down to a reality check, Sensex gives up 130 points

Bombay Stock Exchange , BSE, 9622.80 points, Goods and Services Tax, GST,
Bombay Stock Exchange , BSE, 9622.80 points, Goods and Services Tax, GST,

Mumbai: Stocks were in exhale mode on Monday as the Sensex lost over 130 points to reverse two days of climb and the Nifty got off the record after an eventful last week amid mixed global indicators.

The Nifty, which had hit a life high of 9,160.05 on Friday after scaling an intra-day record of 9,218.40, could not hold up against profit-booking and closed down 33.20 points, or 0.36%, at 9,126.85.

The Sensex moved in a narrow band and closed at 29,518.74, down 130.25 points or 0.44 per cent. It shuttled between 29,482.40 and 29,699.48.

ALSO READ: Cabinet clears GST supplementary legislations

The Sensex had rallied 702.76 points, or 2.42 per cent, to 29,648.99 last week after the BJP’s humongous win in Uttar Pradesh. The Nifty gained 225.50 points, or 2.52 per cent, to finish at a new closing peak of 9,160.05.

Meanwhile, the Cabinet today approved four supporting legislations to implement the goods and services tax (GST) ahead of their introduction in Parliament this week for rollout of the indirect tax reform from July 1.

ALSO READ: Idea, Vodafone India Merger claims to be biggest Telecom Operator in India

“Market is under a breather, post a rally led by state election results and supportive FII inflows. IT stocks are the laggards today due to the concern of a strong rupee, which could impact their export revenue,” said Vinod Nair, Head of Research, Geojit Financial Services.

Approval of the Bills by Parliament and a separate one by all state Assemblies will complete the legislative process for rollout of one-nation-one-tax regime by merging central taxes like excise duty and service tax and state levies like VAT.

The GST Council has already approved four-tier tax slabs of 5, 12, 18 and 28 per cent plus an additional cess on demerit goods like luxury cars, aerated drinks and tobacco products. The work for fitting various goods and services in different slabs is slated to begin next month.

ALSO READ: Maruti Suzuki’s sales network crosses 2,000 mark

Foreign portfolio investors (FPIs) carried on with their buying as they picked up shares worth a net Rs 1,532.90 crore last Friday while domestic institutional investors (DIIs) net sold shares worth Rs 711.50 crore, as per provisional data.

Most Asian stocks ended higher while European shares were trading in the negative zone.

In stock-specific action, Idea Cellular tumbled 9.55 per cent to Rs 97.60 after the company announced its merger with Vodafone India to create the country’s largest mobile player.

Stocks of IT companies felt the heat as the rupee added to its gains, which dragged down the Sensex. The rupee ended on a higher note at 65.36 against the dollar.

The market is in an “over-bought” position and cautious participants preferred to lock in some gains.

Among the 30-share Sensex components, Axis Bank emerged as the top loser by logging a fall of 2.41 per cent, followed by ICICI Bank. Other laggards were Infosys, TCS, Wipro, RIL, Tata Steel, L&T, Hind Unilever, PowerGrid, Maruti Suzuki and M&M.

In contrast, NTPC, Coal India, Bharti Airtel, HDFC Bank, Lupin, HDFC Ltd, ONGC, GAIL and Asian Paints ended with gains, which cushioned the losses.

The BSE IT index lost steam, losing 1.36 per cent, followed by technology, oil and gas and bank indices.

The broader markets stayed ahead of the Sensex. The small cap index rose 0.30 per cent and mid-cap 0.17 per cent.

Japanese exchanges were shut for a public holiday.

Comments

comments

LEAVE A REPLY

Please enter your comment!
Please enter your name here