Sensex ends lower by over 600 points ahead of IIP, CPI data

Benchmark indices ended two-day winning streak amid weak global cues dragged by the losses in financials, metals and auto shares among others. Traders remained ahead of the release of IIP and CPI data while slow progress on land acquisition and GST bill added to the nrevousness.

Provisionally, the 30-share Sensex closed down 630 points at 26,877 and the 50-share Nifty ended down 198 points at 8,127.

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Benchmark indices have slipped further on persistent selling by foreign institution investors amid depreciating rupee and weakness in the global peers. Losses in Index heavyweights including RIL, ICICI Bank, L&T, HDFC and Infosys are contributing the most to the decline on the 30-share Sensex.

At 3.10 PM, the 30-share Sensex was down 652 points at 26,860 and the 50-share Nifty was down 207 points at 8,118.

Top 5 losers on the Sensex are Tata Steel, BHEL, Vedanta, ICICI Bank, Tata Power and have lost between 4-5%.

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(updated at 3.10 PM)

Benchmark indices have extended losses in a broad-based decline dragged primarily by the profit-booking in financials, metal and auto stocks as investors remain cautious ahead of the release of key macro-economic IIP and CPI data due later today and global cues turned weak on concerns over Greece while further delay in the passage of land acquisition and GST bill has also added to the worries of investors.
 
The contentious Land Acquisition Bill will be referred to a 30-member joint committee both Houses of the Parliament while the Goods and Services Tax (GST) Bill will be referred to a select committee of the Rajya Sabha.
 
Meanwhile, giving further credence to India Meteorological Department's early forecast in April of a sub-par southwest monsoon season, Australian Meteorological Department said today that the El Nino weather phenomenon has started to take shape in the tropical pacific which is likely to result in deficient rainfall in the monsoon season. 
 
At 2:08PM, the 30-share Sensex was down 584 points at 26,923 and the 50-share Nifty was down 183 points at 8,142.  
 
 
In the broader market, both the BSE Midcap and Smallcap indices, down nearly 1.5% have performed better than the front-liners. Market breadth in BSE is negative with 1,866 declines against 632 advances.  
 
Buzzing Stocks
 
All the 12 sectoral indices of BSE are trading lower. BSE Capital Goods, Power and Metal indices down nearly 3% are the biggest losers followed by BSE Bankex and Oil & Gas indices down nearly 2.5% each.   
 
Among the few gaining stocks, Dr Reddys Lab has moved higher over 3%. Dr Reddys Lab has posted a net profit after taxes of Rs 518.84 crore in the quarter ending March 31, 2014 that is nearly 8% higher to the Rs 481.60 net profit reported in the same quarter last fiscal.
 
Hero Motocorp has gained over 4% despite the selling pressure weighing on other auto stocks as M&M, Maruti Suzuki, Bajaj Auto and Tata Motors have declined between 1.4% and 2.7%.
 
Financials are leading the decline in today’s session with ICICI Bank losing over 3%, mortgage lender HDFC shedding nearly 3%, HDFC Bank, Axis Bank and public-sector lender SBI falling nearly 2% each.
 
L&T has declined nearly 3%. According to media reports, L&T has signed a technology transfer agreement with South Korea based Hyundai Heavy Industries to build LNG carriers.  BHEL has declined over 4%.
 
After yesterday’s gains, metal stocks are under severe pressure today mainly on account of profit-booking. Tata Steel and Vedanta have shed over 5% each and Hindalco is trading lower by 3.4%.
 
IT stocks have declined too. Infosys, Wipro and TCS are trading lower by 1.5% to nearly 2% each.
 
Volatility in crude oil prices which slumped further today on supply glut and concerns over Greece negotiations has led to weakness in shares like RIL and ONGC, down 2.3% and 2.6% respectively.
 
Global Markets
 
Absence of a significant breakthrough in the talks between Greece and its creditors led to risk-aversion among traders and Asian stocks ended the day largely on a weak note. Japanese shares ended on a flat note while Hang Seng index declined over 1%. Shanghai Composite index, however, managed to post gains of 1.5%.
 
Concerns over Greece have brought early trade losses to European markets. FTSE 100 has declined 1.2%, CAC 40 index has shed 1.7% and DAX index is down nearly 2%.