Sen­sex down 155 pts to nearly three-week

The Political and Business Daily - - FRONT PAGE - PBD BUREAU/PTI

MUM­BAI: Slid­ing lower for the fourth day, Sen­sex on Mon­day fell 155 points to nearly three­week low of 19,593.28 as bank­ing stocks re­mained weak ahead of RBI mone­tary pol­icy re­view.

CON­TIN­U­ING its down­ward march for the fourth ses­sion, the Sen­sex to­day tum­bled 155 points to end at a nearly three-week low of 19,593.28 on the eve of the RBI's mone­tary pol­icy re­view.

The in­dex fell on sell­ing in FMCG, PSU, me­tal and realty stocks, while weak Asian cues amid mixed Euro­pean open­ings also weighed on mar­ket sen­ti­ment.

The 30-share Sen­sex ini­tially touched a high of 19,751.03 and then de­clined on weak Asian trends to set­tle at 19,593.28, a fall of 154.91 points or 0.78 per cent. That was the low­est close since 19,294.12 on July 10.

The National Stock Ex­change's Nifty in­dex fell 54.55 points, or 0.93 per cent, to 5,831.65. The SX40 in­dex on the MCX-SX closed at 11,695.58, down 0.81 per cent.

"Cau­tion was seen ahead of RBI's mone­tary pol­icy," said Nidhi Saraswat, a se­nior re­search an­a­lyst at Bonanza Port­fo­lio Ltd. "RBI has been tak­ing mea­sures to curb ru­pee weak­en­ing against dol­lar and mar­ket has re­acted neg­a­tively to it in last few weeks, par­tic­u­larly the rate-sen­si­tive stocks be­ing the worst hit."

Fast mov­ing con­sumer goods gi­ants ITC and Hin­dus­tan Unilever, which posted Q1 earn­ings last week, de­clined af­ter their re­cent rally and to­gether con­trib­uted al­most 100 points to the Sen­sex fall.

HDFC Bank, Dr Reddy's Lab­o­ra­to­ries, ONGC, Bharti Air­tel, Re­liance In­dus­tries, SBI, Coal In­dia, Hin­dalco, Ba­jaj Auto, Ster­lite In­dus­tries, Maruti Suzuki and Tata Steel also closed with losses.

Among the 13 sec­toral in­dices, 10 closed with losses. The BSE-IT in­dex was the top gainer af­ter Wipro climbed 6.71 per cent on bet­ter-than-ex­pected Q1 re­sults de­clared late on Fri­day and its up­beat rev­enue guid­ance for the sec­ond quar­ter.

The RBI's First Quar­ter Re­view of Mone­tary Pol­icy is sched­uled to­mor­row. Be­sides, the US Fed­eral Re­serve's two-day meet on July 30 and 31 on pol­icy led op­er­a­tors and in­vestors to tread cau­tiously.

Mean­while, Fi­nance Min­is­ter P Chi­dambaram said the man­date of a cen­tral bank is not only to en­sure price sta­bil­ity but also to pro­mote growth and gen­er­ate em­ploy­ment. Speak­ing in Ahmed­abad, the min­is­ter said he did not ex­pect com­mer­cial banks to hike in­ter­est rates.

As many as 20 scrips in the Sen­sex ended lower. The ma­jor losers were Hin­dalco (4.03 pc), HUL (3.71 pc), Ster­lite Ind (3.66 pc), Dr Reddy's Lab (3.53 pc), Coal In­dia (3.19 pc), ITC (2.88 pc), ONGC (2.07 pc), Maruti Suzuki (1.81 pc), HDFC Bank (1.74 pc), Ba­jaj Auto (1.55 pc), Tata Steel (1.46 pc), SBI (1.18 pc) and BHEL (1.16 pc).

Jin­dal Steel rose 4.89 pc, fol­lowed by Tata Mo­tors (2.14 pc) and Sun Pharma (1.91 pc).

Among the sec­toral in­dices, S&P BSE-FMCG dropped 2.67 pc, fol­lowed by S&P BSE-PSU 1.80 pc, S&P BSE-Me­tal 1.80 pc, S&P BSE-Realty 1.65 pc, S&P BSE-Bankex 1.20 pc, S&P BSE-Oil &Gas 1.16 pc and S&P BSE-CD 1.06 pc. The S&P BSE-IT moved up 0.77 pc.

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