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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Pak, Afghan forces trade fire along Chaman border: Report
Islamabad (PTI): A heavy exchange of fire between Pakistani and Afghan forces was reported from the key Chaman border, according to a media report on Saturday.
Injuries were reported from the district hospital, but no fatalities occurred, the Dawn newspaper reported.
Officials from both sides accused each other of instigating the flare-up late on Friday night across the border in the Balochistan province.
While Pakistani officials said that Afghan forces had fired mortar shells on the Badani area, Afghan Taliban spokesperson Zabihullah Mujahid claimed it was Pakistan that launched an attack on Spin Boldak, alleging that their forces were responding.
Pakistan's official sources told Dawn that Pakistani forces retaliated against the Afghan aggression and returned fire.
There were also reports of fighting on the Chaman-Kandahar highway, but these could not be immediately verified.
A senior official in Quetta confirmed on condition of anonymity that the exchange of fire started around 10 pm and continued until late at night.
The medical superintendent of Chaman district hospital said that three injured, including a woman, were brought to the medical facility.
There was neither any official word from the Inter-Services Public Relations -- Pakistan Army's media wing -- nor from the Foreign Office.
The Chaman border crossing, also known as Friendship Gate, connects Balochistan province to Afghanistan’s Kandahar.
Relations between Pakistan and Afghanistan have deteriorated amidst regular allegations by Pakistan regarding the failure of the Afghan regime to deny safe havens to Tehreek-e-Taliban Pakistan terrorists.
The two countries had agreed on a ceasefire following tensions last month, but the Foreign Office said last month that technically there was no truce as it was contingent on the Afghan Taliban stopping terrorist attacks in Pakistan, which they had failed to do.
