Sensex declines 300 pts tracking global fall; IT, metals weigh

Mumbai, Nov 20: Equity benchmarks witnessed a weak day of trade on Tuesday as investors turned wary of the outcome of Reserve Bank of India’s (RBI) Board meeting, along with global markets’ sell-off.
Investors looked to dump stocks as cues emerged that RBI’s measures to boost lending could take some time to be implemented. Experts also said that the Street saw some measures as not sufficient to address issues that plagued the economy.
Further, Moody’s stated that the central bank’s decision to allow lenders more time to adhere to additional capital buffer norms under Basel 3 is credit negative for the country’s state-run banks.
Selling was visible the most among sectors such as IT, metals and pharmaceuticals. Meanwhile, financials, automobiles and consumption also saw weak trades.
In the broader markets, the Nifty Midcap index ended the day over a percent lower.
At the close of market hours, the Sensex shut down 300.37 points or 0.84% at 35474.51, while the Nifty ended lower by 107.20 points or 1.00% at 10656.20. The market breadth was negative as 857 shares advanced, against a decline of 1,706 shares, while 150 shares were unchanged. Adani Ports, IndusInd Bank, and GAIL were the top gainers, while Yes Bank, Tata Steel and Hindalco lost the most.
Stocks in News
Yes Bank’s shares slipped as much as 6 percent after a third board member, R Chandrashekhar, resigned on Monday.
Kridhan Infra (KIL) surged 10 percent after company’s subsidiary won an order of Rs 195 crore.
Graphite stock HEG gained 2 percent as the company is set to consider a proposal to buy back shares.
GMR Infrastructure closed a percent lower after gaining 3 percent even as AERA (Airport Economic Regulatory Authority) allowed company’s subsidiary Delhi International Airport (DIAL) to charge the rates equivalent to BAC+ 10% of BAC (base airport charge) effective from December 1, 2018.
Colgate Palmolive shares gained a percent after global brokerage firm maintained outperform rating on the stock with a target price at Rs 1,375, implying 20 percent potential upside.
Global Markets
European stocks were lower as investors monitored latest developments surrounding Brexit. Stoxx 600 extended its losses, down 0.55 percent.
Meanwhile, markets in Asia also witnessed an overall decline.