Sensex drops 189 points to end below 28,000

Index heavyweights RIL, HDFC and Infosys were the top Sensex losers while SBI was the top gainer

Benchmark share indices ended lower on Monday, amid a weakening rupee, as investors booked profits in index heavyweights after sharp gains in the previous session even as state-owned banks surged after the government announced a plan to revive the ailing state-owned banks, including a Rs 20,000-crore capital infusion lifeline. Further, the uncertainty over key reforms such the deadlock over the GST Bill in the parliament last week also dampened investor sentiment.

The 30-share Sensex ended down 189  points at 27,878 and the 50-share Nifty ended down 41 points at  8,471.
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(Updated at 2:40PM)
Markets have started the week on a dismal note as investors resort to book profits at higher levels amid weak global cues. Meanwhile, a falling rupee and sow advancement of monsoons dampened the sentiments.

However, a stellar rally in the PSU banks after the government launched a seven-pronged strategy to revive the ailing PSU banks capped the downside.

At 2:40 PM, the Sensex is down 170 points at 27,897 and the Nifty has shed 37 points at 8,482 mark. The broader markets are outperforming the benchmarks with the BSE mid-cap and smallcap indices gaining 0.3% each. The market breath is negative on the BSE with 1,345 stocks advancing as against 1,390 stocks declining.

RUPEE

The rupee has hit 2-year low and is trading 21 paise lower at 65.21 against the US dollar on sustained bouts of dollar demand from importers amid weakness in the local equities.

MONSOON

Monsoon rainfall deficit has widened to 10% as a strengthening El Nino weather pattern trimmed rainfall, the weather department said, raising fears of the first drought in six years.

STOCK TRENDS

On the sectoral front, BSE Capital Goods, Realty, IT, Oil & Gas indices are trading lower between 1-2%. However, BSE Consumer Durables, Bankex are trading higher up to 1%.

Banking shares, mainly public sector undertakings (PSU), have extended their early morning gains with the National Stock Exchange (NSE) CNX PSU Bank index rallying more than 5% in noon deals.

Among individual stocks, Bank of Baroda was up 15% at Rs 211, after surging 17% in late noon trades on the NSE. The stock has hit a high of Rs 216 in intra-day trades so far.

Canara Bank has rallied 10% to Rs 335, followed by Bank of India (8% at Rs 184), IDBI Bank (6% at Rs 70), Punjab National Bank (4.6% at Rs 174), Allahabad Bank (4.5% at Rs 95.15), Union Bank of India (4.5% at Rs 217), Oriental Bank of Commerce (4.4% at Rs 179) and State Bank of India (4% at Rs 280).

Hindalco Industries reported a net profit of Rs. 107.19 crore for the quarter ended June, against a profit of Rs. 327.50 crore in the year-ago quarter, hurt by high finance and depreciation costs. The stock is down nearly 3%.

Cipla reported an over two-fold jump in its consolidated net profit to Rs 650.61 crore for the quarter ended June 30, 2015 mainly on account of robust sales.  However, after it’s recent run-up, the stock is witnessing some profit booking at attractive valuations. The stock is down nearly 5%.

Shares of Oil and Natural Gas Corporation (ONGC) reported net profit of Rs 5,460 crore for the quarter ended June 30, 2015 (Q1) against an average analyst estimates of Rs 6,029 crore. The stock is down 2.5%.

Vedanta is in the process of issuing Secured, Rated, Non-Cumulative, Redeemable Non-Convertible Debentures (NCDs) of upto Rs 2000 crore on private placement basis. The stock is down 2%.

Sub Normal monsoons has casted a shadow on the tractor sales thus contributing to a decline in M&M. The stock is down 1.8%.

Reliance is trading lower by 25 on further decline in the crude price as a global glut of crude supplies showed no signs of abating in the face of sluggish demand.

Gitanjali Gems has gained over 6% after it reported 98.28% rise in its net profit at Rs 15.80 crore for the quarter ended June 30, 2015 as compared to Rs 7.97 crore for the same quarter in the previous year.