Mumbai: Equity benchmarks closed at two-week low on Wednesday with the Nifty falling below 6700-mark weighed down by realty, infrastructure and metals stocks.
After swinging sharply during the day, the index lost 18.85 points to close at 6696.40 and the Sensex was down 48.39 points to 22417.80, continuing downtrend for the fourth consecutive session. The broader markets saw major selling pressure compared to benchmarks with the BSE Midcap and Smallcap indices declining 1.1 percent and 1.65 percent, respectively.
It was just a correction amid bull run, say experts. They believe the market should see new highs till Lok Sabha elections outcome on May 16. "In bull markets, we do have corrections and I would attribute this slip to a correction.
We have corrected hardly 550 points from the top we made on the Sensex. So, another 100-200 points correction may be on cards and then probably we will resume the uptrend," says Rajen Shah, CIO, Angel Broking. He is very bullish on the market.
"We are very hopeful that Narendra Modi would be forming the next government and post that we should be at about 24000 levels by June," Shah reasons. Also read - Nifty to hit 7400 by year-end; like private banks, telcos: BNP For the month of April, equity benchmarks closed flat.
The market will be shut on Thursday on account of Maharashtra day. The BSE Realty Index tanked more than 5 percent followed by Power and Capital Goods with over 2 percent. Engineering & construction major Larsen & Toubro and state-run power equipment maker BHEL were down 2-3 percent while in the realty space, DLF plunged nearly 9 percent.
Top telecom operator Bharti Airtel lost over 2 percent despite stable quarterly earnings. It has reported consolidated net profit of Rs 961.6 crore in fourth quarter of FY14, a growth of 57.6 percent (90 percent year-on-year) compared to previous quarter supported by India business and improved operational efficiency. Tata Power was the biggest loser, falling 3.5 percent while among metals, Sesa Sterlite, Hindalco Industries, Tata Steel and Coal India declined 1-3 percent. Sun Pharma and Ranbaxy Labs lost 1-2 percent after Andhra Pradesh High Court has issued orders to maintain status quo on the merger deal ( between both companies ).
Top private sector lender ICICI Bank fell over a percent whereas rivals State Bank of India and HDFC Bank saw marginal gains. Shares of HDFC, ONGC, Tata Motors, Hero Motocorp and Dr Reddy's Labs advanced 1-2 percent. In the broader space, Indian Overseas Bank rallied over 12 percent post Q4 earnings while Alstom India spiked 12 percent as French group Alstom said it was considering General Electric's (GE) $13.5 billion bid for its energy unit.
However, Punj Lloyd, Dewan Housing (post weak Q4 earnings), HDIL, MCX India and Bombay Dyeing lost 7-8 percent. Decliners outnumbered advancers by a ratio of 1785 to 960 on the Bombay Stock Exchange.
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