Mumbai: Equity benchmarks snapped four-day gains on profit-taking on Thursday weighed down by oil & gas, banks and power stocks. The 30-share BSE Sensex, which resumed trading after over three hours of halt , slipped 17.46 points to close at 25823.75 while the 50-share NSE Nifty fell 10.35 points to 7714.80. It was a consolidation (with small profit-taking) day for the market, which has to happen after such a sharp upside seen in last few sessions, but the long term trend remains positive, say experts, adding the Nifty may continue to touch new high till the announcement of Budget that is scheduled for July 10.
Aditya Narain, Citi says the government's first budget is just a first step in a five-year run, but should set near-term mood. "Big ones that would move mood & market: Oil reform; particularly LPG/kerosene subsidies, income tax rationalisation, savings thrust/tax changes, big housing thrust, changing land/labor laws and subsidy cuts.
One or more, and the market's off to the bar!" he adds. The brokerage house is positively biased, and maintains a December 2014 Sensex target of 26,300. The BSE, which was shut for more than three hours from 9:30 am due to network outage, has managed to resume trading around 12:37 pm in afternoon. The exchange did not give the exact cause of the network outage, other than saying that a preliminary report would be given to Sebi and the Finance Ministry today.
BSE MD and CEO Ashish Kumar Chauhan said the exchange, and its technology partners HCL Comnet and Cisco are in the process of analyzing the root cause of the glitch. Banks, oil & gas and power stocks saw profit booking. Shares of ONGC, Reliance Industries, NTPC, Power, Hindustan Unilever and Hindalco Industries were prominent losers today, falling 1-2.5 percent. Two-wheeler majors Bajaj Auto and Hero Motocorp fell 2-3 percent as both adjusted for dividend of Rs 50 and Rs 65 per share, respectively.
Hero sold 5.41 lakh units in June, down 10 percent compared to 6.02 lakh units in May. However, Tata Motors topped the buying list, rising 3 percent followed by Sun Pharma, Wipro and Mahindra & Mahindra with 1-2.6 percent. In the broader space, GMR Infrastructure slipped 8 percent. Sources said the company raised USD 200 million through its qualified institutional placement issue that was subscribed 1.5 times. Jaiprakash Associates too garnered USD 250 million through QIP issue that was oversubscribed 2 times, sources said. The stock fell 4.6 percent.
However, Apollo Tyres gained 3.8 percent after board approved hike of investments by FIIs from 40 percent to 45 percent in the equity share capital of the company. It also approved a proposal to invest USD 340 million to upgrade facilities at its Chennai and Kalamassery plants. The stock touched a record high of Rs 217.20. TVS Motor Company was up over 2 percent as two-wheeler maker sold 2.02 lakh units in June, a growth of 23 percent compared to a year-ago period. Globally, Brent crude August futures fell below $111 a barrel on easing of supply fears after Libya declared an end to an oil crisis. Declining shares outnumbered advancing ones by a ratio of 1474 to 1293 on the Bombay Stock Exchange.