RTTN: Indian Market Snaps Three-day Winning Streak
(RTTNews) - After trading in positive territory for most of the day, the Indian market reversed its direction in the final hour of trading, as fluctuating European stocks and little change in U.S. index futures ahead of the Christmas break triggered late-session profit taking. Other markets in Asia also turned in a mixed performance on Wednesday, with key benchmark indexes in Japan and China ending down 0.23% and 0.90%, respectively.
Snapping a three-day rise, the benchmark 30-share Sensex ended down 45 points or 0.22% at 20,016, as investors moved to the sidelines ahead of key U.S. economic growth data today. Ratings agency Fitch's warning that it may lower Greece's credit rating to "junk" status also weighed on sentiment to some extent.
The 50-share Nifty also ended down 16 points or 0.27% at 5,984, but the BSE small-cap and mid-cap indexes posted modest gains. In the broader market, gaining shares outpaced declining ones by 1504 to 1395 shares on the BSE.
Among heavyweights, carmaker Maruti Suzuki led the decliners with a 2.11% loss. Reliance Infrastructure lost 1.74%, Hero Honda Motors fell 1.26% and Cipla ended down 0.93%. Market heavyweight Reliance Industries gave off 1.34% after announcing a JV with Russia's largest petrochemical company Sibur for the production of butyl rubber in India.
After a good start, several bank stocks lost ground to end on a mixed note. ICICI Bank shed 0.65% and HDFC Bank lost 1.51%, while SBI closed flat with a positive bias.
Software exporters such as TCS and Wipro lost about a percent each, as the Indian rupee gained against the greenback in early trading Wednesday due to persistent dollar-selling by exporters and banks.
On the positive side, shares of state-run oil marketing companies advanced amid reports about a potential diesel price hike by December-end. BPCL advanced 1.64%, HPCL gained 0.80% and IOC ended up 0.69%.
Telecom stocks also received good support. Bharti Airtel rallied 3.12%, Reliance Communication gained 0.7% and Idea Cellular added half a percent. Metal stocks such as Sterlite, Hindustan Zinc and Hindalco rose by 1%-2%, as base metal prices ticked slightly higher on the LME Wednesday morning.
Dr Reddy's Laboratories closed off the day's low at Rs.1,677.40, down about half a percent, on reports of gas leakage at its Bollaram facility in Hyderabad. Kesar Terminals & Infrastructure, the demerged storage unit of Kesar Enterprises, moved in a range of Rs.111-82 on its debut before closing at Rs.99.85.
Tata Chemicals rallied 3.58% after the company said it has forayed into branded pulses under its 'i-Shakti' brand. Ispat Industries climbed over 11% to Rs.23.60 after JSW Steel launched an open offer to buy an additional 20% stake in the ailing steelmaker at Rs.20.54 a share. Shares of the latter, meanwhile, ended down 0.75%.
