Sensex, Nifty Decline Most In Two-Weeks Dragged By Profit Booking In Autos, Banks
Indian shares declines most in two-weeks after investors choose to book profits in banks and auto companies from record levels.
The S&P BSE Sensex dropped 0.8 percent to 28,797; while the NSE Nifty lost nearly 1 percent to 8,866, biggest decline since August 10. The market breadth was skewed in favour of the bears at 1,032 declines, 571 advances and 255 stocks remaining unchanged.
“The bias still remains positive. We have seen some short covering in the last two days or so, by investors who felt left out,” Ashu Madan, COO of Religare Securities told BloombergQuint in a phone interview.
The S&P BSE Oil & Gas index (+0.9 percent) was the best performing sectoral gauge; while S&P BSE Metal (-1.7%), FMCG (-1.7%), Auto (-1.4%) and Bank (-1%) indexes dropped the most.
Madan expects the Nifty to remain in an 8,800 to 9,050 range for the next few days heading into a truncated week. Investors will also watch for some the latest consumer price inflation and index of industrial production figures for direction.
Motherson Sumi May Price $300m Share Sale at Lower End
Shares of the auto ancillary rose around 1 percent, making one of the only two advancing stocks on the S&P BSE Auto index.
The company is planning to price its QIP issue at Rs 317 a share, which is at the low end of the marketed range, reports Bloomberg News citing people with knowledge of the matter.
The issue has been subscribed nearly 1.5 times so far, they told Bloomberg News.
The Nifty IT index rebounds after two-day drubbing, making it the only advancing sectoral gauge on the NSE, led by Mindtree (+1.6%), HCL Tech (+1.1%) and TCS (+0.7%).
Indian shares declined as investors weighed prospects for further monetary easing in Europe and possibility of interest rate hike by the U.S. Fed.
The S&P BSE Sensex dropped 0.4 percent to 28,911; while the NSE Nifty lost 0.4 percent as well to 8,900. The decline on the 50-share index was led by Yes Bank, which extended its losing streak for a third day.
Market Movers: Bharti Infratel, Yes Bank, Motherson Sumi and More