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BW Businessworld

Sensex At 4-wk Low, Nifty Below 8,400 On Sun Selloff

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Retrospective taxation concerns, muted earnings and weakening rupee continued to drive markets further into consolidation with the benchmark BSE Sensex falling over 210 points to 27,676.04 and NSE Nifty slipping below the crucial 8,400-mark today.
Sun Pharma added to the rout by tumbling more than 8.70 per cent on both Sensex and Nifty after Japan's Daiichi Sankyo announced selling of its holding in the Indian drugmaker.
Worries over retrospective taxation on foreign portfolio investors prompted them to sell stocks, but the underlying trend has weakened due to equity-led worries around Jan-March quarter earnings, a broker said.
FIIs had sold shares worth Rs 1,506.86 crore yesterday, as per provisional data.
The 30-share Sensex opened lower at 27,860.51 on sustained foreign funds outflows and weak quarterly earnings. However, on value buying in select stocks, it recovered to touch day's high of 27,976.93 in noon trade.
A round of late selling in select bluechip stocks dragged the index down to touch low of 27,598.21 before closing at 27,676.04 points -- its weakest level since March 27 -- down 210.17 points or 0.75 per cent.
The gauge has now lost over 1,370 points in five sessions.
The NSE Nifty slipped below the 8,400-mark by falling 70.35 points or 0.83 per cent at 8,377.75. It shuttled between 8,469.35 and 8,352.70, intraday.
"Domestic factors continue to drive market into further consolidation. Though FIIs selling due to tax woes influenced to an extent, Q4 results will still be the decisive factor for market in the near-term," said Vinod Nair, Head-Fundamental Research at Geojit BNP Paribas Financial Services.
Moreover, the rupee which breached the crucial 63-mark to touch a low of 63.15 at the outset, rebounded by 16 paise to trade higher at 62.75 against the dollar (intra-session).
Sectorwise, the BSE healthcare index suffered the most by falling 3.24 per cent, followed by auto at 1.31 per cent, FMCG by 1.17 per cent, oil & gas 1.08 per cent, power 0.73 per cent, capital goods 0.48 per cent and realty 0.37 per cent.
Pharma stocks, Cipla and Dr Reddy's fell by 0.94 per cent and 2.81 per cent, respectively.
On the day, BSE smallcap fell by 0.32 per cent, while midcap dropped by 0.45 per cent.
Globally, other Asian markets ended in positive zone, while European markets were trading higher in their opening trade. .


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