Stock markets decline for 3rd day on FII selling, weak rupee; Sensex tanks nearly 504 pts
Mumbai (PTI) Stock markets declined on Tuesday, with the benchmark Sensex tumbling nearly 504 points due to selling in blue-chip bank stocks and Reliance Industries, and persistent foreign fund outflows.
Falling for the third straight session, the 30-share BSE Sensex tumbled 503.63 points or 0.59 per cent to settle at 85,138.27. During the day, the benchmark tanked 588.9 points or 0.68 per cent to hit a low of 85,053. The index had scaled a record high level in intra-day trade in the previous session, but closed lower due to profit booking in the second half.
The 50-share NSE Nifty declined by 143.55 points or 0.55 per cent to 26,032.20.
Among Sensex firms, Axis Bank, HDFC Bank, Reliance Industries, ICICI Bank, Bharat Electronics and Larsen & Toubro were the biggest laggards.
However, Asian Paints, Maruti, Bharti Airtel and Bajaj Finance were among the gainers.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,171.31 crore on Monday, while Domestic Institutional Investors (DIIs) bought stocks worth Rs 2,558.93 crore, according to exchange data.
"FII selling has once again gathered pace and in the last three sessions have sold domestic shares worth more than Rs 6,000 crore. Valuations at elevated levels and delay in the announcement of the Indo-US trade deal are causing a lot of anxiety amongst the investors who are looking at fresh positive triggers. The rupee's downward spiral is also adding to investors discomfort," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.
The rupee breached the psychological 90-a-dollar level in intraday trade before settling 46 paise down at an all-time low of 89.99 against the US dollar on Tuesday.
The BSE smallcap gauge declined 0.49 per cent and midcap index dipped by 0.14 per cent.
Among sectoral indices, services dropped 1.03 per cent, financial services (0.78 per cent), bankex (0.75 per cent), industrials (0.49 per cent) and utilities (0.40 per cent).
BSE Telecommunication, consumer durables, teck and auto were the winners.
A total of 2,563 stocks declined while 1,586 advanced and 167 remained unchanged on the BSE.
In Asian markets, Shanghai's SSE Composite index settled lower while South Korea's Kospi, Japan's Nikkei 225 index and Hong Kong's Hang Seng index ended in positive territory.
The decline was primarily driven by a sharp contraction in the IIP data, weakness in the rupee, and caution ahead of the upcoming US Fed and RBI policy decisions later in the week, Ajit Mishra – SVP, Research, Religare Broking Ltd said.
Markets in Europe were trading higher. US markets ended lower on Monday.
Brent crude, the global oil benchmark, dipped 0.33 per cent to USD 62.96 per barrel.
On Monday, the Sensex pared early gains and ended 64.77 points or 0.08 per cent lower at 85,641.90. During the day, the benchmark jumped 452.35 points or 0.52 per cent to hit a record intra-day high of 86,159.02.
The Nifty dipped 27.20 points or 0.10 per cent to settle at 26,175.75. During the day, it climbed 122.85 points or 0.46 per cent to hit a lifetime high of 26,325.80.
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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.”
