Markets extend losses; RIL slumps over 2%

The S&P BSE Sensex slumped over 150 points at 26090 level while the CNX Nifty dipped over 50 points at 7,773 level

Markets have further extended losses during late trades on Friday after profit taking was seen in IT majors and banks after gains in the previous few sessions.

 

At 14.15 PM, the S&P BSE Sensex slumped over 150 points at 26090 level while the CNX Nifty dipped over 50 points at 7,773 level.

 

The broader markets underperformed the benchmark share indices as the BSE Mid-cap and Small-cap indices slipped between 1.5-2% each. 

 

Meanwhile, Finance Minister Arun Jaitley today ended retrospectivity in higher capital gains tax on debt mutual funds, but only for redemptions made between 1 April to 10 July.

 

"I have reconsidered it and I propose to move a government amendment in the Finance Bill itself that the new tax regime will not be applicable to transactions on sale of units which have taken place between 1 April and 10 July this year. If you have sold during this period, this (higher tax) will not apply," Jaitley said in reply to a debate on the Finance Bill, 2014 in the Lok Sabha. 

 

Jaitley, however, defended the budget proposal to impose higher capital gains tax, saying the facility was used by corporates mainly for arbitrage.

 

Global Markets

 

Asian shares pulled away from this week's three-year highs on Friday after a mostly flat day on Wall Street, though a fresh S&P closing record and upbeat U.S. employment data underpinned sentiment.

 

MSCI's broadest index of Asia-Pacific shares outside Japan was down about 0.3%, though still on track for solid weekly gain of more than 1%. Hong Kong's benchmark index hovered around its highest in more than three years, set for its best week since May.

 

Japan's Nikkei stock average gained 1.1% to a six-month closing high, rising 1.6% for the week.

 

Indian Currency

 

The rupee is trading at 60.09. The rupee is seen in 59.90 to 60.30 range during the day with month-end import dollar demand seen supporting the pair.

 

Sectors and Stocks

 

The BSE Realty index slumped nearly 4% followed by Power, Metal, Oil & Gas, Capital Goods, Consumer Durables, Bankex and IT indices, all slipped between 1-3% each.

 

The BSE Healthcare index gained nearly 1% while FMCG index edged marginally higher by 0.4%. 

 

Wipro was the top Sensex loser as the scrip slumped nearly 5% after posting a profit of Rs 2,118 crore, largely in line with expectations for the June 2014 quarter (Q1). The company had reported a profit of Rs 2,239 crore in March quarter. The revenues declined 4% on a quarter-on-quarter basis to Rs 11,246 crore.

 

Other IT stocks also traded in red. Infosys dipped over 1.5% while TCS, Tech Mahindra and HCL tech was down between 0.3-1% each.

 

Among oil and gas companies, Reliance, ONGC and GAIL dipped between 0.5-2.5% each.

 

In the banking space, ICICI Bank, SBI, HDFC Bank and Axis bank was down between 0.5-2% each.

 

Shares of capital goods companies such as BHEL slumped over 4% while Larsen and Turbo dipped nearly 1%.

 

Metal stocks such as SAIL, Hindalco, Tata Steel, Sesa Sterlite and NMDC edged lower between 1-4% each.

 

Sun pharma was the top Sensex gainer, up nearly 3%. Other pharma stocks also gained momentum, scrips of Ranbaxy, Dr Reddy’s Lab and Cipla gained between 1-3% each.

 

Glenmark Pharmaceuticals surged 6% after reporting a strong 44% year-on-year (yoy) jump in consolidated profit at Rs 185 crore on back of strong revenue growth for the quarter ended June 2014. The company had profit of Rs 129 crore in year ago quarter.

 

Among others, TVS Motor Company has dipped nearly 8%, extending its Thursday’s 6% after reporting net profit of Rs 72 crore against an average analyst estimates of Rs 87 crore for the quarter ended June 30 2014 (Q1).

 

Cairn India has dipped 5, extending its Thursday’s nearly 7% fall, after the Vedanta group-controlled company said that it will lend about $1.25 billion to its parent for two years at a yield of Libor + 3% and ruled out the option of returning surplus cash to shareholders in the form of higher dividends.

 

Indiabulls Housing Finance zoomed 6% after the company’s consolidated net profit jumped 21% at Rs 424 crore on 19% growth in total revenue to Rs 1603 crore in Q1 June 2014 over the same period last year.

 

Shares of Goa Carbon slumped nearly 8% after the company said it has received notice from the State Pollution Control Board, Odisha for closure operations at its Paradeep plant.

 

The market breadth on the BSE was negative as 2010 shares declined while 769 advances.