Profit taking in index heavweights RIL and HDFC weighed on sentiment while ICICI Bank surged 7%
Benchmark share indices ended lower on Monday, amid weak global cues, as investors turned cautious post the earnings from IT majors TCS and Infosys.
The S&P BSE Sensex ended down 27 points at 27,700 and the Nifty50 closed 8 points lower 8,576.
In the broader market, the BSE Midcap and Smallcap indices ended down 0.5%-1% each. Market breadth ended weak with 1496 losers and 1306 gainers on the BSE.
"Banks went up earlier in the day, as Essar- Rosneft deal gave hopes that similar deals could ease NPA worries. However, nervous global markets following Fed chair’s comments last Friday, and sustained selling by FIIs seen all through last week look to have pricked sentiments, sparking long liquidation. Markets would now be watching with interest, RBI minutes tomorrow, especially in the backdrop of fuel price hike, and also with a view to understand what to expect of the newly inducted MPC." said Anand James, chief market strategist, Geojit BNP Paribas Financial Services.
Foreign institutional investors were net sellers in equities worth Rs 946 crore on Friday, as per provisional stock exchange data.
Asian markets ended mixed with Hang Seng and Shanghai Composite emerging as the top losers while Nikkei and Straits Times ended with marginal gains. Hang Seng dropped nearly 1% while Shanghai Composite ended down 0.7%.
European shares were trading lower on discouraging reports from select corporates even as shares of some Italian banks witnessed an uptick. The FTSE-100, DAX and CAC-40 were down 0.6%-0.8% each.
ICICI Bank ended nearly 7% higher after the Essar group on Saturday signed a binding agreement with Russia’s Rosneft, United Capital Partners and Trafigura Group Pte. to sell 98% in its most priced asset, the 20 million tonnes per annum Vadinar refinery and Vadinar port in Gujarat.
According to a Business Standard report, the proceeds of the sale will be used to repay loans of both foreign and local lenders, which was around Rs 88,000 crore, Ruia said. Axis Bank which is also a lender to the Essar Group was up nearly 2%.
Index heavyweights HDFC and Reliance Industries were among the top loser down 1.7% each along with Asian Paints and L&T.
IT majors Infosys and TCS ended lower post their second quarter earnings. While TCS missed expectation on topline growth Infosys lowered its FY17 revenue growth guidance to 8%-9% from 10.5%-12% in constant currency terms.
Auto shares witnessed profit taking after recent gains. M&M, Maruti Suzuki, Hero MotoCorp, Tata Motors and Bajaj Auto ended down 0.4%-2.8% each.
Among others, Fortis Healthcare ended up 4% after the company on Saturday said it has completed the acquisition of 51% stake in Fortis Hospotel Ltd and acquired compulsorily convertible preference shares issued by Escort Heart Institute and Research Centre Ltd.
Valiant Organics ended in 20% upper circuit for the second straight trading session post its listing on Friday, October 14, 2016.
Shares of tyre manufacturers were under pressure, falling by up 6% on the BSE, on profit booking. Ceat, Goodyear India, Apollo Tyres, MRF and TVS Srichakra ended down between 1%-4%.
DCM surged 20% after the board approved the restructuring of its business including demerger of real estate business.
DCB Bank gained 3.5% after the bank reported 31% year on year (YoY) increase in net profit at Rs 48.9 crore for the quarter ended on September 30, 2016 (Q2FY17). The private lender had recorded a net profit of Rs 36.9 crore in the corresponding quarter of last fiscal.
Trident ended up 2.6% after rating agencies Credit Analysis & Research Ltd (CARE) and CRISIL upgraded the long-term and short term bank facilities of the company.