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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SC to hear plea challenging blocking of YouTube channel '4PM' on May 13
New Delhi, May 10 (PTI): The Supreme Court is scheduled to hear a plea seeking quashing of an order blocking YouTube channel '4PM' on May 13.
The apex court on May 5 sought responses from the Centre and others on the plea filed by Sanjay Sharma, the editor of digital news platform '4PM', which has a subscriber base of 73 lakh.
The plea claimed that the blocking was effected by the intermediary pursuant to an undisclosed direction allegedly issued by the Centre citing "vague" grounds of "national security" and "public order".
As per the top court's cause list for May 13, the plea is slated to come up for hearing before a bench of justices B R Gavai and Augustine George Masih.
The plea claimed that the blocking was a "chilling assault on journalistic independence" and the right of public to receive information.
The petition, filed through advocate Talha Abdul Rahman, said no blocking order or underlying complaint was furnished to the petitioner, violating both statutory and constitutional safeguards.
The plea also contended that it was a settled law that the Constitution does not permit blanket removal of content without an opportunity to be heard.
"'National security' and 'public order' are not talismanic invocations to insulate executive action from scrutiny," it said.
The action was not only ultra vires the parent statute, but also strikes at the core of democratic accountability ensured by a free press, the plea said.
"The blocking is a chilling assault on journalistic independence and the right of the public to receive information," it said.
The plea sought a direction to the Centre to produce the order with "reasons" and "records", if any, issued to the intermediary for blocking the channel.
It also sought quashing of Rule 16 of the Information Technology (Procedure and Safeguards for Blocking for Access of Information by Public) Rules, 2009.
Rule 16 mandates strict confidentiality regarding all requests, complaints and actions taken under the rule.
The plea also sought striking down and/or reading down Rule 9 of the Blocking Rules, 2009, to mandate issuance of a notice, opportunity of hearing and communication of a copy of the interim order to the originator or creator of the content prior to passing a final order.
It said the petitioner's YouTube channel was blocked without giving any fair opportunity to clarify or justify his case.
