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Rediff.com  » Business » Sensex ends at 2-week low amid weak global cues

Sensex ends at 2-week low amid weak global cues

Last updated on: August 08, 2014 16:19 IST

The Bombay Stock ExchangeMarkets extended losses for the third straight session on Friday as investors sold stocks across sectors amid escalating geopolitical tensions in Ukraine and Iraq.

The 30-share Sensex slipped 259.87 or 1.02% to end at 25,329.14, hitting a 2-week low.

The Sensex had ended at 25,991 on July 28. The 50-share Nifty dipped 80.70 points or 1.06% to close at 7,568.55.

The broader markets underperformed benchmark share indices as the BSE Mid-cap and Small-cap tumbled over 2%.

Foreign funds were net sellers to the tune of Rs 73 crore on Thursday, as per the provisional data on the Bombay Stock Exchange.

Meanwhile, the market breath on the BSE was negative as 2075 shares declined and 825 shares advanced.

Around the globe:

Asian shares tumbled on Friday as investors sought out safe-haven assets on growing fears that conflicts in Ukraine and West Asia could sap global growth, extending losses after US President Obama authorised air strikes in Iraq.

Better-than-expected export growth from China pulled markets off their lows, but failed to offset all the gloomMSCI's broadest index of Asia-Pacific shares outside Japan was off its lows but was still down about 0.9%, on track for a weekly loss of around 1.6%. Japanese shares witnessed a sell-off dropping to a 2-month low.

The benchmark Nikkei ended down 3.07% at 14,778.37. Among others in the region, Hang Seng and Straits Times were down 0.3-0.6% each. However, Shanghai Composite was trading marginally higher.

European shares were trading lower tracking weakness in global stocks while the Russian ban on food and agricutural imports from the West also weighed on sentiment. CAC-40, DAX and FTSE were down over 1-1.3% each.

Crude:

Crude soared more than a $1 to $98.45 a barrel, after closing at its the weakest level since February on Wednesday.

It was last up about 0.6% at $97.96, while Brent crude rose 0.9% to $106.39 a barrel.

Rupee:

At 16.00 PM, the rupee was trading at 61.35 after hitting 61.74, its weakest since March 5 but still below Thursday's close of 61.22/23. Traders say foreign banks spotted selling the greenback, causing the rise from session lows.

The pair seen holding in 61.20 to 61.60 range rest of the session.

Sectors & buzzing stocks:

The BSE Realty, Bankex, Capital Goods, Power, Metal, Oil & Gas, Consumer Durables and Auto indices slumped between 1-4% each.

IT index ended marginally lower by 0.4% while FMCG and Heathcare ended flat with a positive bias.

Sesa Sterlite was the top Sensex loser as the scrip plunged over 5%. Other shares of metal companies like Hindalco, Tata Steel and Coal India slipped between 2-4% each.

Capital goods major BHEL and L&T also dipped between 2.5-3% each.

Among the oil and gas companies, Reliance ended down by 0.8% while GAIL and ONGC shed between 1-3% each.

SBI edged over 1% lower the country's largest lender posted a marginal 3.3% rise in net profit at Rs 3,349 crore for the first quarter ended June 2014 (Q1) on substantial rise in provisions for bad loans. Meanwhile, Axis Bank and HDFC Bank slumped over 2% and ICICI Bank shed 3.5%

M&M ended over 1% lower after the automobile manufacturer reported a 6% drop in net profit at Rs 882 crore for the Q1. It was Rs 938 crore in the same period a year ago.

Bharati Airtel was the top Sensex gainer as the scrip surged over 2%.

The company said its board will consider the declaration of interim dividend, for the financial year 2014-15 in their meeting scheduled on August 13, 2014.

Dr Reddy’s Lab, ITC, HUL, TCS and Sun Pharma are other Sensex gainers with marginal gains.

Shares of Bombay Dyeing slumped nearly 8% after the company's net loss during the quarter ended June 30, 2014 nearly doubles on account of higher material and finance costs.

Titagarh Wagons plunged 5 % after net profit fell 47.3% to Rs 2.15 crore on 25.4% decline in net sales to Rs 70.16 crore in Q1 June 2014 over Q1 June 2013.

Vardhman Textiles slipped nearly 9% after reporting 27% year-on-year (yoy) drop in its standalone net profit at Rs 106 crore for Q1, due to higher raw material cost.

The textiles company had profit of Rs 145 crore in the same quarter previous year.

Vanita P D'souza in Mumbai
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