Sensex slips 113 pts ahead of RBI policy

Sensex slips 113 pts ahead of RBI policy; 

ITC & SBI plunge Cigarette major ITC plunged 3.6 percent on volume growth concerns. CLSA revised down its FY14 volumes growth to -2 percent as against almost flat earlier and cut earnings per share estimates by around 2 percent post Q2. JP Morgan cut target price on the stock to Rs 385 from Rs 390 earlier.

The market started off the F&O expiry week on a negative note with the Sensex shedding more than 100 points on Monday ahead of RBI's second quarter monetary policy review tomorrow. Expectations on the street are largely in favour of repo rate hike as RBI governor Raghuram Rajan's focus remains to be inflation. said he would bet that the focus in going to be on inflation control. “While inflation control, on one hand, is important, on the other hand, you are buying dollars releasing more liquidity into the system and there is a bit of a dichotomy there,” KR Bharat of Advent Advisors said. September inflation increased further to 6.46 percent as against 6.1 percent in August. Must Read - RBI won't tweak MSF; 50bps repo rate hike possible: Goldman Meanwhile, Ambareesh Baliga of Edelweiss Financial Services does not see the market falling below 6000 level. “The market is in range of 6000-6250. The results have been decent compared to what the expectations were. So I do not see there will be any reason for the market to really crack too much from these levels,” he explained.

The Sensex was down 113.24 points to close at 20570.28 while the Nifty lost 43.80 points to 6101.10. Declining shares outpaced advancing ones by 1406 to 989 on the BSE. India’s largest lender State Bank of India lost 2.4 percent followed by ICICI Bank and HDFC Bank with 0.7 percent loss. Cigarette major ITC plunged 3.6 percent on volume growth concerns. CLSA revised down its FY14 volumes growth to -2 percent as against almost flat earlier and cut earnings per share estimates by around 2 percent post Q2. JP Morgan cut target price on the stock to Rs 385 from Rs 390 earlier. Hindustan Unilever fell 0.8 percent on profit booking. In initial trade, the stock had rallied 2.5 percent after reporting stable numbers during September quarter. Its volume growth was 5 percent in second quarter as against 4 percent in Q1, meeting analysts’ forecast. Metals lost shine today with the Sesa Sterlite and Tata Steel falling 3 percent each whereas the gainers were HDFC (up 1.4 percent), Reliance Industries (up 0.5 percent), L&T (up 1.9 percent), ONGC (up 1 percent) and Tata Motors (up 0.4 percent). On the earnings front, Dabur India plunged nearly 4 percent despite slightly higher-than-expected numbers during September quarter. Syndicate Bank slipped 0.3 percent as its asset quality worsened further while Ajanta Pharma, Tata Elxsi and Tinplate surged 14-15 percent after strong quarterly earnings. Ceat gained nearly 6 percent post earnings.


FOR MORE UPDATES JUST REGISTER YOUR NUMBER HERE

 
Form generator powered by 123ContactForm.com | Report abuse