Stock markets retreat from lifetime highs on profit-taking in financial, FMCG shares; Sensex slips 6
Mumbai (PTI): Benchmark stock indices Sensex and Nifty closed marginally lower after hitting their fresh all-time highs on Monday due to profit-taking at higher levels and foreign fund outflows.
The 30-share BSE Sensex pared early gains and closed 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 50-share NSE 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.
Markets faced correction at higher levels as expectations of an RBI rate cut this week faded following better-than-expected Q2 GDP growth, an expert said.
A slower growth in GST collection and profit-taking at higher levels also dragged the key indices.
Stock markets had surged to their record highs in the morning session as investor sentiment turned positive after India's economy grew at a higher-than-expected 8.2 per cent in July-September - recording the fastest pace in six quarters.
Among Sensex firms, Bajaj Finance, Sun Pharma, Trent, Mahindra & Mahindra, State Bank of India and Bajaj Finserv were the major laggards.
However, Tata Motors Passenger Vehicles, Maruti, Bharat Electronics, Kotak Mahindra Bank, Adani Ports and HCL Tech were among the gainers.
"After reaching a new high, the market moved into a range-bound phase as expectations of an RBI rate cut in December faded following better-than-expected Q2 GDP growth and a sharp depreciation of the rupee. Sentiment turned slightly cautious due to muted GST collections in November, driven by lower rates," Vinod Nair, Head of Research, Geojit Investments Limited, said.
"Markets surrendered early gains and pulled back sharply from record highs as profit-booking set in amid weak global cues and a cautious interest-rate outlook," Vikram Kasat, Head Advisory, PL Capital, said.
The BSE midcap gauge dipped 0.19 per cent and smallcap index ended flat marginally up by 0.05 per cent.
Among sectoral indices, realty dropped 1.02 per cent, followed by consumer durables (0.56 per cent), services (0.45 per cent), telecommunication (0.27 per cent), FMCG (0.23 per cent) and oil & gas (0.13 per cent).
Auto jumped 0.80 per cent, metal (0.56 per cent), BSE Focused IT (0.33 per cent), IT (0.28 per cent), and consumer discretionary (0.20 per cent).
India's manufacturing sector activity eased to a nine-month low in November, mainly owing to a softer rise in sales and production amid reports of challenging market conditions, a monthly report said on Monday.
The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) fell to 56.6 in November from 59.2 in October, highlighting the slowest improvement in operating conditions since February.
Gross GST collection rose at a slower pace of 0.7 per cent in November at Rs 1.70 lakh crore, as domestic revenues declined, according to the government data released on Monday.
In Asian markets, Shanghai's SSE Composite index and Hong Kong's Hang Seng index settled in positive territory, while South Korea's Kospi and Japan's Nikkei 225 index ended lower.
Markets in Europe were trading lower. US markets ended higher on Friday.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,795.72 crore on Friday, while Domestic Institutional Investors (DIIs) bought stocks worth Rs 4,148.48 crore, according to exchange data.
Brent crude, the global oil benchmark, jumped 1.96 per cent to USD 63.60 per barrel.
On Friday, the Sensex dipped by 13.71 points or 0.02 per cent to settle at 85,706.67. The Nifty skidded 12.60 points or 0.05 per cent to 26,202.95.
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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.”
