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Markets slip on selling pressure, healthcare stocks plunge
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SME Times News Bureau | 23 May, 2017
The equity markets were on Tuesday pulled lower as a weak rupee
coupled with caution ahead of derivatives expiry and heavy selling
pressure witnessed in healthcare stocks suppressed investors'
sentiments.
The equity markets also reacted to the Indian Army's
claim to have decimated several Pakistani military posts along the Line
of Control in Jammu and Kashmir. The Indian Army's recent "punitive
assault" was part of counter-terror strategy to stop cross-border
militant incursion.
The 30-scrip Sensitive Index (Sensex) of the BSE tanked over 200 points or 0.67 per cent to close at 30,365.25 points.
The
wider 51-scrip Nifty of the National Stock Exchange (NSE) slipped below
its psychologically important 9,400-mark to close at 9,386.15 points --
down 52.10 points or 0.55 per cent.
"Markets ended lower on
Tuesday after a volatile session. Broader markets witnessed major
selling pressure, with indices like the BSE mid-cap and small-cap
indices underperforming the Sensex," Deepak Jasani, Head (Retail
Research), HDFC Securities, told IANS.
"Selling pressure
increased in mid-afternoon trade after the Indian Army reportedly said
it has hit locations across the LoC with Pakistan recently. The
statement suggests an escalation in tensions along the LoC, where a
cease-fire has often been violated."
The S&P BSE mid-cap index slipped by 1.56 per cent and the small-cap index by 1.89 per cent.
Anand
James, Chief Market Strategist, Geojit Financial Services, said: "PSBs
(state-run banks) cut losses ahead of F&O (futures and options)
expiry, giving brief sense of recovery. Market breadth remained
suppressed by earnings shocks as long liquidation pressure."
"Market
would now wait for monsoon updates and further news on NPAs
(non-performing assets) resolution before making the next decisive
move."
According to Dhruv Desai, Director and Chief Operating
Officer of Tradebulls, firm USD/INR futures prices pressurised the
market sentiments.
On the currency front, the rupee weakened by 34 paise to 64.89 per US dollar from its previous close of 64.55.
In
investments, provisional data with the exchanges showed that foreign
institutional investors (FIIs) sold stocks worth Rs 400.53 crore, while
domestic institutional investors (DIIs) purchased scrips worth Rs 352.54
crore.
"Banking stocks traded down on continue selling pressure.
State Bank of India fell by two per cent even after strong performance
in the fourth quarter failed to cheer investors because of the large
stock of bad loans of its associate banks that the bank inherited after
their merger with it," Desai explained.
"Sun Pharmaceuticals fell
five per cent after its arm Taro's fourth quarter EPS from continuing
operations stood at $2.05 against $2.68 year on year. Most power sector
stocks traded down led by Adani power and Torrent Power with more than
five per cent intra-day down losses."
Sectorwise, all the sub-indices of the BSE closed in the red, except the automobile index, which rose by 97.75 points.
The
healthcare index plunged by 397.44 points, the capital goods index by
261.34 points and the consumer durables index by 235.58 points.
Major
Sensex gainers on Tuesday were: Maruti Suzuki, up 2.70 per cent at Rs
6,880.30; Mahindra and Mahindra (M&M), up 1.71 per cent at Rs
1,329.35; Wipro, up 0.90 per cent at Rs 525.40; Tata Steel, up 0.78 per
cent at Rs 490.40; and Hero MotoCorp, up 0.59 per cent at Rs 3,585.45.
Major
Sensex losers were: Adani Ports, down 6.19 per cent at Rs 332.05;
Cipla, down 4.89 per cent at Rs 533.15; Sun Pharma, down 4.33 per cent
at Rs 612.55; Bajaj Auto, down 3.02 per cent at Rs 2,824.40; and Gail,
down 2.74 per cent at Rs 380.45.
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Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
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66.20
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64.50 |
UK Pound
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87.50
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84.65 |
Euro
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78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
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