Sensex, Nifty fall for second straight session on weak global trends
Mumbai, (PTI): Equity benchmark indices Sensex and Nifty buckled under selling pressure for the second straight session on Thursday as a bearish trend in global markets amid escalating geopolitical uncertainties unnerved investors.
Besides, disappointing quarterly earnings numbers and revenue forecast from IT services company Wipro also weighed on investor sentiments, traders said.
Metal, energy and power stocks witnessed selling pressure while buying in auto and consumer durable counters capped the losses.
The 30-share BSE Sensex fell 247.78 points or 0.38 per cent to settle at 65,629.24 points. During the day, it plunged 533.52 points or 0.80 per cent to 65,343.50 points.
The Nifty declined 46.40 points or 0.24 per cent to 19,624.70 points.
"Amid increasing global political strain, US treasury yield, and underwhelming IT earnings, the domestic market continued to trade with a minor cut. However, some optimism was evident in the equity market given global efforts to stabilise the West Asia conflict, which deescalated the crude price trend.
"Auto sector stocks outperformed, driven by Q2 results outcome. Investors are closely monitoring the Q2 earnings season, US Fed chair speak and West Asia developments," said Vinod Nair, Head of Research at Geojit Financial Services.
Among the Sensex firms, Wipro fell nearly 3 per cent after the company reported an almost flat consolidated net profit at Rs 2,667.3 crore for the September quarter, trailing street expectations. It has also projected up to 3.5 per cent fall in revenue in the current quarter due to a weak global economic outlook and uncertain business environment.
NTPC, Tech Mahindra, JSW Steel, Bharti Airtel, Tata Steel, Tata Consultancy Services, ICICI Bank, Kotak Mahindra Bank and Reliance Industries were among the other major laggards.
"Markets remained vulnerable amidst simmering Middle-East geopolitical tensions. Pessimism still continues to run high amidst negative catalysts like deepening Israel-Palestine conflict, uninspiring Q2 from corporate India Inc. so far, the 10-year US Treasury yields spiking to 4.87 per cent, rising expectations of one more interest rate increase from the Fed, and anxiety ahead of Powell's speech later today," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.
Nestle jumped nearly 4 per cent after the FMCG major reported an increase of 37.28 per cent in net profit at Rs 908.08 crore for the third quarter ended September 30, helped by a consistent performance almost across all major brands.
UltraTech Cement, IndusInd Bank, Larsen & Toubro and Axis Bank were among the gainers.
In the broader market, the BSE midcap gauge declined 0.08 per cent and smallcap index climbed 0.07 per cent.
Among the sectoral indices, metal fell 0.95 per cent, oil & gas (0.48 per cent), services (0.44 per cent) and teck (0.42 per cent).
Consumer Discretionary, FMCG, auto and consumer durables were the gainers.
"Global equities slid on Thursday as risk aversion prevailed due to mounting worries over Middle East conflict, while the bond sell-off intensified, taking Treasury yields to fresh 16-year highs ahead of a keenly awaited speech from Fed Chairman," said Deepak Jasani, Head of Retail Research, HDFC Securities.
In Asia, markets in Seoul, Tokyo, Shanghai and Hong Kong settled in the negative territory.
European markets were trading lower. The US markets ended lower on Wednesday.
Global oil benchmark Brent crude declined 1.99 per cent to USD 89.68 a barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,831.84 crore on Wednesday, according to exchange data.
On Wednesday, the BSE benchmark plunged 551.07 points or 0.83 per cent to settle at 65,877.02 points while the Nifty declined 140.40 points or 0.71 per cent to 19,671.10 points.
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Two held for 'firing' at BJP leader's house in Bengal
Kolkata (PTI): A day before the counting of votes for the West Bengal assembly elections, two persons were arrested on Sunday for allegedly being involved in a firing incident outside the residence of a BJP leader in North 24 Parganas district, police said.
BJP leader Kundan Singh lodged a police complaint, alleging that a few gunmen fired at his house in the Noapara constituency around Saturday midnight.
Based on the CCTV footage, the two accused were apprehended, a senior officer said.
BJP's Noapara candidate Arjun Singh, in a post on social media, claimed that around 12.05 am, two armed miscreants arrived on a motorcycle at the residence of Kundan Singh, a BJP functionary and secretary of the Barrackpore organisational district, with an "intent to kill him".
According to the BJP leader, the accused are residents of Garulia and are known criminals.
Their names as offenders had been submitted to the Election Commission, he said.
The police officer did not specify whether the two arrested persons were the same individuals named by Arjun Singh.
According to the complaint, one round of firing took place outside Kundan Singh's house, triggering panic in the area.
The BJP candidate also questioned the role of the police, claiming that one of the accused had been detained by the police on the polling day but was later released in the evening.
The Noapara assembly seat went to the polls on April 29.
Several BJP leaders alleged that attempts were being made to create an atmosphere of fear ahead of the counting and weaken the organisation of the opposition parties.
The counting of votes will take place on May 4. Polling for the West Bengal assembly elections was held on April 23 and April 29.
The BJP urged the Election Commission to intervene immediately to ensure peaceful counting.
TMC candidate Somnath Shyam rubbished Arjun Singh’s allegation, claiming that the BJP nominee had orchestrated the firing incident to divert attention from imminent defeat.
“Arjun Singh knows all the gangsters in the Barrackpore belt. Everyone knows about his links with the underworld. Let the police investigate the incident,” Shyam said.
