Markets snap 4-day rally; Sensex ends 452 points lower as banking stocks drag
Mumbai, Jun 30 (PTI): Benchmark equity indices Sensex and Nifty tumbled on Monday after a four-day rally amid emergence of profit-taking, mainly in bank stocks.
After staying in the negative territory throughout the day, the 30-share BSE Sensex later dropped 452.44 points or 0.54 per cent to settle at 83,606.46. During the day, it tanked 576.77 points or 0.68 per cent to 83,482.13.
The 50-share NSE Nifty declined 120.75 points or 0.47 per cent to 25,517.05.
From the Sensex firms, Axis Bank, Kotak Mahindra Bank, Maruti, UltraTech Cement, Bajaj Finance, ICICI Bank, Reliance Industries, Tata Steel, Bharti Airtel and HDFC Bank were among the major laggards.
However, Trent, State Bank of India, Bharat Electronics, Titan and Bajaj Finserv were among the gainers.
The BSE smallcap gauge climbed 0.81 per cent and midcap index went up by 0.67 per cent.
Among BSE sectoral indices, realty dropped 0.87 per cent, bankex (0.59 per cent), auto (0.49 per cent), metal (0.49 per cent), oil & gas (0.19 per cent) and financial services (0.17 per cent).
Capital goods jumped 1.10 per cent, services (1.08 per cent), industrials (0.66 per cent), healthcare (0.56 per cent) and consumer durables (0.42 per cent).
"Last week, the market had seen a sharp upsurge on the back of strong global cues and domestic institution buying, however, profit-taking came to the fore which pulled down benchmark indices.
"The focus will be on tariff settlement with the US government, as the due date is nearing and India is yet to conclude the agreement which could create uncertainty amongst the investors. While volatility will continue, India's strong growth prospects going forward would temper the fall," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.
In the past four trading days, the Sensex jumped 2,162.11 points or 2.64 per cent and the Nifty surged 665.9 points or 2.66 per cent.
"The global market sentiment is moving in favour of equities on account of easing risk in the Middle East and the US trade deal hopes. However, the main domestic indices witnessed profit-booking after the recent rally.
"Investors are now turning their attention to quarterly earnings and will refocus the markets on fundamentals for valuation support," Vinod Nair, Head of Research, Geojit Investments Limited, said.
In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index and Shanghai's SSE Composite index settled in the positive territory while Hong Kong's Hang Seng ended lower.
European markets were quoting lower.
The US markets ended higher on Friday.
Foreign Institutional Investors (FIIs) bought equities worth Rs 1,397.02 crore on Friday, according to exchange data.
Global oil benchmark Brent crude dipped 0.15 per cent to USD 67.67 a barrel.
On Friday, the Sensex climbed 303.03 points or 0.36 per cent to reclaim the 84,000 level and settle at 84,058.90. On the similar lines, the Nifty rose 88.80 points or 0.35 per cent to 25,637.80.
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Inappropriate for MLAs seeking free IPL tickets, says D.K. Suresh
Bengaluru: Bengaluru Milk Union Ltd President D.K. Suresh on Monday said it is inappropriate for MLAs to seek free IPL tickets, adding that those interested in watching matches should pay for them personally.
Speaking to reporters near his residence in Sadashivanagar, he said, “IPL is a commercial tournament and does not represent the country. It is not right for public representatives to focus too much on such matters.”
Referring to the recent controversy during the RCB celebrations, he said, “let us find out who benefited the most from the statements made during the incident.” He also pointed out that BJP MLAs had received IPL tickets as well.
Responding to discussions about relocating the Chinnaswamy Stadium, Suresh said the government has already approved the construction of a new stadium at a location he had proposed.
“I had suggested building a stadium in Surya City and submitted a proposal for it. Bengaluru needs four stadiums in four directions to cater to its growing population and encourage youth participation in sports,” he said.
He noted that apart from Kanteerava Stadium, KSCA, and the Football Stadium, there are limited facilities in the city.
“When I was a Lok Sabha member, I had proposed allocating 100 acres in my constituency at Surya City. The land was later earmarked and the plan approved,” he added.
Suresh said he has discussed the project with Minister Zameer Ahmed Khan, Rajiv Gandhi Housing Corporation Chairman Shivalingegowda, and Anekal MLA Shivanna.
“The Cabinet has now approved the project, and a stadium will be developed on around 50–60 acres,” he said.
He further added that he has requested the Deputy Chief Minister to build another stadium at Shivarama Karanth Layout through the BDA, where 40 acres have been allocated. Plans are also being discussed to develop a well-equipped stadium in Bidadi.
Commending state government's recent bilingual policy move, Suresh said forcing children to learn three languages could affect their comprehension.
“It is a good decision to make two languages compulsory. Learning a third language should be left to the choice of students and parents,” he said.
Responding to criticism from BJP leaders, he said their tendency is to oppose every decision of the government.
“To please their central leadership, they take a pro-Hindi stance. Instead, they should advocate for the adoption of Kannada in all states,” he said.
When asked about the earlier three-language policy under Congress, he said, “the situation is different now. Today, the focus should be on quality learning. Kannada should remain the primary language, while students and parents can choose an additional language.”
