(RTTNews) - After showing lackluster movement in early trading, the Indian market fell sharply in mid-afternoon trading on Thursday. Weak global cues, a continuous rise in the headline inflation rate and intensive profit taking weighed on market movement.
The benchmark Sensex closed near the day's lows at 16,790, down 219 points or 1.29% and the S&P CNX Nifty fell 75 points or 1.48% to 4,989. After showing some initial gains, small-cap and mid-cap stocks also succumbed to selling pressure. The BSE mid-cap index moved down 2.12% and the small-cap index by 1.96%.
High-beta realty stocks bore the brunt of the selling pressure, followed by capital goods, consumer durable, banking and metal stocks. Cement stocks fell across the board amid reports that cement prices have softened across the country.
Jaiprakash Associates(down 6.84%), DLF(down 4.93%), ICICI Bank(down 4.08%), Larsen & Toubro(down 3.86%), Tata Motors(down 3.61%), Reliance Infrastructure(down 3.10%), Grasim Industries(down 2.78%), SBI(down 2.50%) and Reliance Industries(down 2.24%) were among the prominent decliners.
However, FMCG stocks received support on defensive buying. ITC advanced 1.58% and Hindustan Unilever rose 1.44%. Telecom stocks also rose as they underperformed the broader market in recent times. Bharti Airtel rose 1.20% and Reliance Communication edged up 0.32%.
In the IT sector, TCS and Wipro fell sharply, but Infosys gained over 2% as the Indian rupee hit a new 2-week low against the U.S. dollar.
Subex hit the 5% upper circuit limit after receiving the RBI nod for restructuring its $180 million unsecured foreign currency convertible bonds. Jet Airways fell nearly 5% on reports the Foreign Investment Promotion Board has deferred a proposal for fund raising.
Yes Bank rose 1.25% after announcing robust earnings for the September quarter. Lanco Industries surged up around 10% on strong Q2 earnings.
However, Larsen & Toubro fell 3.86% even as it posted 26% growth in quarterly net profit. Likewise, Everonn Education declined 2.42% despite posting a 32% rise in September-quarter earnings.
Pidilite Industries added 2.53% on reporting a 158% rise in quarterly net profit. Hero Honda Motors ended down 0.45% despite posting robust second-quarter earnings. KEC International fell 2.33% despite bagging overseas orders worth Rs 470 crore.
Edelweiss Capital fell 2.36%, Shriram EPC gave off nearly 4% and Pipavav Shipyard slipped 0.90% after hedge fund Galleon Group, which holds stakes in these companies, announced its decision to wind up all its hedge funds.
