Business Standard
Notification Icon
userprofile IconSearch

Markets end flat after SC verdict on coal block allocation

Metal stocks lose ground with Hindalco, Tata Steel, Sesa Sterlite down 4-10%

Advertisement

Jinsy Mathew Mumbai
Benchmark indices which hit fresh record highs early today ended flat amid selling pressure in metal and power stocks after the Supreme Court on Monday held that guidelines were breached in coal block allocations during the UPA government and that the terms of allotment, going as far back as 1993, were themselves illegal.

However, the 30-share Sensex ended at a record closing high up 17 points at 26,437 after hitting  a fresh record high of 26,631 and the 50-share Nifty ended down seven points at 7,906 after hitting a fresh record high of 7,968.

The sell-off was more prominent in the broader markets with both the Mid and Smallcap indices ending 0.6% and 0.4% lower, respectively.
 
Sectors & Stocks

Metal index down over 4% was the top sectoral loser along with Realty, Power and Banking index down 1-2%.

Oil & Gas, Capital Goods and Consumer Durables were the other indices to close in red, down 0.3-1%.

Defensive pocket like IT, FMCG and Health Care were back in focus with the respective indices registering gains of 0.5-1%.

Metal stocks which are dependent on thermal power to operate their plants lost ground fter the Supreme Court's crack down on coal block allocation. As a result, Hindalco, Tata Steel, Sesa Sterlite and Tata Power slumped 3-10% and were the top losers in the Sensex pack.

ICICI Bank, Axis Bank, GAIL and L&T ended down 1% each were the other notable losers.

TCS, HUL, Dr Reddys and Hero MotoCorp gained 2-2.5% to emerge as the top gainers for the day.

Among other scrips, Jet Airways dipped 5% to Rs 233 on reports that the credit rating agency Icra has downgraded the company’s loan ratings from “”BB” to “D”. Instruments with “D” rating are in default or are expected to be in default soon.

Ess Dee Aluminium tanked 7% to Rs 437, extending its past four day’s fall, after reporting a disappointing set of numbers for the quarter ended June 2014 (Q1FY15).

Trident surged 6% to Rs 26 after the company said that its credit ratings have been upgraded by Credit Analysis & Research (CARE) to A-.

Arvind too gained 6%, extending its 11% rally last week, hitting a 52-week high of Rs 276, after the company on Friday announced that its subsidiary Arvind Lifestyle Brands Ltd., has tied up with iconic US clothing brand Gap Inc., to open Gap stores in India.

The market breadth ended negative on BSE. 1,624 stocks declined while 1,393 stocks advanced.

Global Markets

Most Asian markets with the exception of China ended with firm gains on Monday and Japanese shares rebounded to hit three and a half week highs.

Shares in Japan rebounded to end at their highest closing level since end July with exporter shares leading the gains after the yen depreciated against the US dollar. The Nikkei was up 0.5%. Shanghai Composite down 0.5% was the only index to close in red.

In Europe, CAC and DAX were up 1% each while FTSE was flat with a negative bias.

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Aug 25 2014 | 4:08 PM IST

Explore News