Stock markets snap 2-day rally, Sensex falls nearly 625 pts as banking, IT shares retreat
Mumbai, May 27 (PTI): Snapping the two-day gaining streak, benchmark Sensex tumbled nearly 625 points on Tuesday due to profit-taking in banking, IT and auto shares.
The 30-share BSE Sensex dropped 624.82 points or 0.76 per cent to settle at 81,551.63 in a volatile session. During the day, the barometer tanked 1,054.75 points or 1.28 per cent to 81,121.70. As many as 25 Sensex shares declined while five advanced.
The 50-issue NSE Nifty declined 174.95 points or 0.70 per cent to 24,826.20. The barometer saw sharp swings in both directions in the first half but sustained profit-taking in heavyweight stocks dragged the index down.
Key indices Sensex and Nifty had advanced around 1.5 per cent in the past two sessions.
Analysts said investors turned cautious ahead of the release of industrial and manufacturing production data for April on Wednesday and the first quarter GDP numbers, scheduled to be announced later this week.
From the Sensex firms, UltraTech Cement fell the most by 2.21 per cent, followed by ITC which declined 2.01 per cent. Tata Motors, NTPC, Axis Bank, HCL Tech, Mahindra & Mahindra, HDFC Bank, ICICI Bank and Eternal were among the laggards.
IndusInd Bank, Sun Pharma, Adani Ports, Nestle and Asian Paints were the gainers.
"The domestic market witnessed volatility and snapped a two-day rally, as investors opted for profit booking driven by valuation concerns and weakness across Asian markets," Vinod Nair, Head of Research, Geojit Investments, said.
Mid- and small-cap segments remained relatively resilient, supported by better-than-estimated Q4 earnings and moderation in premium valuation, Nair added.
The BSE smallcap gauge went up by 0.19 per cent and midcap index climbed 0.18 per cent.
Among sectoral indices, FMCG dropped 0.79 per cent, IT declined 0.71 per cent, BSE Focused IT by 0.68 per cent, auto by 0.66 per cent, bankex by 0.60 per cent, utilities by 0.57 per cent and metal by 0.52 per cent.
Healthcare, industrials, telecommunication, capital goods, realty and consumer durables were the gainers.
"We are currently witnessing a tug-of-war between bulls and bears amid mixed global cues. However, favourable domestic factors such as a good monsoon and strong macroeconomic data are helping maintain a positive undertone," Ajit Mishra – SVP, Research, Religare Broking Ltd said.
In Asian markets, South Korea's Kospi and Shanghai's SSE Composite index settled in the negative territory while Japan's Nikkei 225 index and Hong Kong's Hang Seng ended higher. Markets in Europe were trading in the green. US markets were shut on Monday for Memorial Day.
Foreign Institutional Investors (FIIs) bought equities worth Rs 135.98 crore on Monday, according to exchange data.
Global oil benchmark Brent crude climbed 0.51 per cent to USD 65.07 a barrel.
The BSE Sensex jumped 455.37 points or 0.56 per cent to settle at 82,176.45 on Monday. The Nifty climbed 148 points or 0.60 per cent to 25,001.15.
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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.”
