Sensex ends over 200 points down, Nifty below 10950

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Mumbai, Jul 16: A sharp selloff in the last hour of trade on Monday ensured that the market broke away from its positive momentum seen all through the last week. The Sensex managed to end the day over 200 points lower, while the Nifty gave up 11,000 as well as 10,950 and ended below the latter. A rise in wholesale inflation also weighed on indices.
Among sectoral indices, barring IT stocks, all of them ended in the red, with deep cuts seen among pharmaceuticals, metals, energy and PSU Banks, among others. In the broader markets, investors looked to dump stocks, as the Nifty Midcap index ended over 2.5 percent lower.
The Sensex is down 217.86 points or 0.60% at 36323.77, while the Nifty is down 82.00 points or 0.74% at 10936.90. The market breadth was positive as 562 shares advanced, against a decline of 2,036 shares, while 176 shares were unchanged.
The annual rate of inflation based on monthly WPI stood at 5.77% (provisional) for June 2018 as against a print of 4.43% (provisional) in the previous month and 0.90% in June 2017.
“Mixed global cues couples with a disappointing inflation print at home, impacted investor sentiment. A higher inflation rate in a flat to slowing growth environment can be detrimental for the economy. Barring the IT index, all other sectoral indices on the National Stock Exchange closed the day in the red,” Abhijeet Dey, Senior Fund Manager-Equities, BNP Paribas Mutual Fund said in a statement.
Stocks in news
Infosys recovered sharply and hit a fresh record high of Rs 1,384.40 after the company announced bonus share issue, though earnings were mixed. The net profit for the quarter ended June 2018 degrew by 2.11 percent sequentially to Rs 3,612 crore, which was partly hit by reduction in the fair value of disposal group held for sale in respect of Panaya. The stock closed 2.05 percent higher at Rs 1336.
PC Jeweller: Share price of PC Jeweller touched 52-week low of Rs 86.10, falling over 28 percent intraday as company withdraw the buyback offer. The company’s bankers have not given require NOC for the proposed share buyback offer of Rs 424 crore. The stock closed 25.89 percent lower at Rs 88.90.
Dr Reddy’s Laboratories slipped nearly 10 percent after the New Jersey District Court converted a temporary injunction into a preliminary injunction against the company that prevents it from launching generic Suboxone in the US market until patent litigation related to US Patent No. 9,931,305 is concluded.
DCB Bank share price plunged 11.09 percent after reporting weakest ever operating profit growth in last eight quarters and net interest margin at 11-year low in Q1. The private sector lender’s June quarter profit increased 6.6 percent to Rs 69.50 crore, backed by net interest income and lower provisions while net interest income grew by 17 percent to Rs 272.97 crore.
IDBI Bank recouped losses after falling nearly 7 percent intraday after the insurance behemoth Life Insurance Corporation of India said the board approved acquisition of major stake in the public sector lender. The stock closed 1.4 percent lower at Rs 56.45.