Sensex ends below 27,000; ITC, RIL top losers

Index heavyweights ITC and RIL were among the top losers along with bank shares

Markets ended lower to snap six-day winning streak after investors booked profits after sharp gains in the previous sessions with index heavyweights ITC and Reliance Industries leading the decline.

The 30-share Sensex provisionally ended down 182 points at 26,853 and the 50-share Nifty ended down 49 points at
8,129.

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(Updated at 2:45PM)
Benchmark indices continue to reel under selling pressure weighed down by index heavyweight shares like IT, Reliance Inds and financial shares. ITC and financials shares are witnessing profit taking after gains in the previous sessions.

According to media reports, Reliance Inds may be asked to pay Rs 12,000 cr fine to ONGC for the gas issue.

At 14:45 pm, the 30-share Sensex was down 233 points at 26,802 and the 50-share Nifty was down 56 points at 8,123.

The broader markets are dismal in line with the benchmark indices. BSE Midcap index has slumped over 1% and the Smallcap index has dipped by 0.4%.

Market breadth remains weak on the BSE with 1,429 shares declining and 1,005 shares advancing.

In the currency front, the rupee depreciated 12 paise to 65.08 against the dollar at the Interbank Foreign Exchange on buying of the US currency by importers.

GLOBAL MARKETS

Global stocks traded just off three-week highs on Thursday after unexpectedly weak trade and machinery orders data from Germany and Japan hinted at a stalling in the momentum of some of the world's biggest economies.

An oil price bounce, a flat dollar and gains in Chinese markets provided some support, but with worries growing over Germany and the U.S. Federal Reserve due to release minutes of its last meeting, investors were wary of extending world shares' six-day rally any further.

MSCI's all-country equity index was flat after rebounding 7 percent since last Friday when weak US jobs data led to expectations that the first Fed rate rise in almost a decade would be delayed into next year.

Emerging assets also retreated after strong gains in recent days, with MSCI's equity index fell 0.6 percent and most currencies easing against the dollar.

However Chinese shares rose 3 percent, playing catch-up with the past week's global rally.

SECTORS & STOCKS

BSE FMCG, Healthcare and Oil & Gas indices have plummeted over 1% followed by counters like Auto, Banks, Capital Goods, Power and Realty, all dipping by almost 1% each. However, BSE Consumer Durables and Metal indices are up 0.4%.

From the FMCG pack, ITC has lost over 2% on the media reports of a likely ban on loose cigarettes in the northern state of Uttar Pradesh.

Index heavyweight Reliance Inds has plunged over 2% on the media buzz that the company may be asked to pay Rs 12,000 cr fine to ONGC over the gas issue.  Shares of ONGC have also declined by nearly 2%.

From the financial space, ICICI Bank, Axis Bank, HDFC Bank and HDFC have plunged between 0.4-1%. Bank shares witnessed significant rally in last few trading sessions after the RBI surprised the street with 50 bps rate cut.

Mahindra & Mahindra (M&M) has declined almost 1%. The company announced that global credit rating agency Moody's Investors Services has assigned Baa3 foreign currency and local currency issuer rating with stable outlook to the company.

Other notable losers are GAIL, Lupin, Sun Pharma, NTPC and TCS.

On the gaining side, Vedanta, Hindalco, Tata Steel, Dr Reddy’s Labs and Tata Motors.

Tata Steel, which will commission a 3 million tonne steel plant in Kalinganagar by December, plans to scale up its operations gradually. Also, Tata Steel said its subsidiary in the UK and the trustee of the British Steel Pension Scheme had concluded the triennial actuarial valuation of the scheme.  Shares of Tata Steel are up almost 2%.

Among other shares, Suzlon Energy has slumped by 2%. However, rating agency CARE has upgraded assigned investment grade BBB- rating to wind turbine manufacturer Suzlon for its outstanding bank facilities and to the proposed commercial paper instrument. The rating is valid until September 16.

Force Motors has moved higher by 9% to Rs 3,075 on the BSE, its highest level since August 5, 2015.

Shares of Tribhovandas Bhimji Zaveri (TBZ) has moved higher by 17% to Rs 144 on the BSE after the company announced an arrangement with Snapdeal to showcase their high quality diamond jewellery and gold coins anytime, anywhere on online marketplace.

Shares of New Delhi Television Limited (NDTV), Elgi Equipments and Ess Dee Aluminium have rallied more than 10% on the BSE in an otherwise weak market on back of heavy volumes.


With Reuters input