 "Bear market")
Markets ended lower amid profit taking in late trades with PSU bank shares leading the decline after sharp gains in the previous session while declining merchandise exports in January also weighed on market sentiment.
The S&P BSE Sensex ended down points at and the Nifty50 closed 75 points lower at 7,088.
In the broader market, the BSE Midcap index ended down 2.4% and the Smallcap index ended down 2.2%. Market breadth ended negative with 2003 losers and 615 gainers on the BSE.
"Markets which had witnessed a sharp pull back in the previous session as it was in a oversold position. There was fresh bout of selling today since we have entered into a bear market trajectory. Markets are likely to see further downside and the near term support for the Nifty below 7,000 is arounf 6,850," said Alex Mathews, Head of Research at Geojit BNP Paribas Financial Services.
India’s merchandise exports dropped for the 14th consecutive month with shipments in January, 2016 contracting 13.6% y-o-y to $21 billion owing to a steep fall in shipment of petroleum products and engineering goods amid tepid global demand which dented sentiment.
Foreign institutional investors were net sellers in equities worth Rs 1,312 crore on Monday, as per provisional stock exchange data.
SECTORS & STOCKS
BSE Realty index was the top loser down 3% along with Bankex, Healthcare, Capital Goods, Oil and Gas indices among others. The Nifty PSU Bank index was the top loser down 4.5%.
PSU bank shares witnessed profit taking after sharp gains in the previous session.
State-owned banking major SBI ended down over 4% after SBI chairman stated that non-performing assets will rise in the fourth quarter (January- March 2016) as well, and profitability will get impacted.
Bank of Baroda which zoomed 22% in the previous session ended down 5.7%. Among others, Bank of India, Canara Bank, PNB, Union Bank, Oriental Bank of Commerce and Syndicate Bank ended down 4%-7% each.
ICICI Bank ended down 3.8%. The private banking major plans to raise up to Rs 50,000 crore from bonds in tranches to fund affordable housing and infrastructure projects.
Mahindra & Mahindra ended down 1.8%. The vehicle major plans to invest Rs 8,000 crore on its automotive plants in Maharashtra over the next seven years as part of its expansion plans.
Coal India eased 1.7%. South Eastern Coalfields Limited (SECL), a subsidiary of the Coal India Limited (CIL), would be setting up country’s largest coal washery with a capacity of 25 million tonnes per annum (MTPA) in Korba district of Chhattisgarh.
Other Sensex losers include, ITC, Tata Motors, L&T and Reliance Industries among others.
Adani Ports surged over 4% after the company recently reported 26% rise in net profit at Rs 645 crore for the quarter ended December 31, 2015 compared with Rs 512 crore for the same quarter last fiscal.
Metal shares witnessed profit taking after sharp gains in the previous session. Hindalco and Vedanta ended down 3%-4.5% each while Tata Steel eased nearly 1%.
Further, Jindal Steel and Power ended nearly 6% lower after CRISIL downgraded JSPL credit rating to A4+ from A3+, indicating a negative outlook.
Among other shares, United Breweries (Holdings) Ltd (UBHL) ended down over 11% after it received a letter fromPunjab National Bank (PNB) on February 15, 2016, whereby the bank has declared the company as a ‘Willful Defaulter’. Among other group shares, United Spirits ended down 2.3%.
