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Market snaps four-week gaining spree, tanks nearly 3 pc

Sensex-bse

Mumbai :Lingering uncertainty pulled down the equities, snapping the four-week gaining spree to plunge nearly 3 per cent as the benchmark Sensex fell below the psychological 27,000 and the broader Nifty finishing below the key 8,100 level.

Bearishness swamped the market momentum as it tagged continuous selling for the whole of five-trading sessions of the week, bridled by US rate hike fears amid its two day meet and subsequent possibility of interest rate hike while tabling it on December meeting.

Despite good opening at the global-level during the start of week on account of China’s fresh rate cut, the domestic market gains could not be sustained due to lacklustre corporate earnings number which singled the investors mind to sell or preferred to remain in the sidelines.

The market also failed to garner any enthusiasm for the weeks beginning of new F&O series.

The Sensex resumed higher at 27,575.04 and hovered in a range of 27,618.14 and 26,585.20 before closing at 26,656.83, showing a loss of 813.98 points or 2.96 per cent.

The Sensex had gained by 1,607.51 points or 6.21 per cent in the previous four weeks. The CNX 50-share Nifty also dropped by 229.65 points or 2.77 per cent to 8,065.80. The CNX Nifty had gained by 426.95 points of 5.43 per cent in the previous four weeks.

Prices fell by up to Rs 1,100 per quintal at the wholesale market.

Sentiments were influenced after the state governments stepped up countrywide crackdowns on hoarders and have seized over 1.24 lakh tonnes so far, traders said.

Besides, government’s decision to import more pulses and selling of imported lentils at the Kendriya Bhandar and Mother Dairy’s Safal outlets at Rs 120-130 per kg in Delhi, Andhra Pradesh and Tamil Nadu have helped arresting skyrocketing prices, they added.

Easing demand at prevailing levels as retail consumers prefer to defer purchases on hopes of further dip in prices in coming days, too weighed on prices.

In the national capital, arhar and its dal dara variety prices eased further to Rs 11,300 and Rs 11,600-16,300 against last close of Rs 12,100-12,400 and Rs 14,000-14,200 per quintal, respectively.

At retail markets in the national capital, tur dal prices fell Rs 200 per kg, at Kolkata it declined to Rs 160 per kg, while in Mumbai and Chennai, it traded at Rs 173 per kg.

Urad and its dal chilka local fell further to Rs 9,100-10,100 and Rs 10,100-10,300 from previous levels of Rs 9,300-10,300 and Rs 10,300-10,500 per quintal, respectively.

Urad dal best quality and dhoya eased to Rs 10,200-10,800 and Rs 10,600-10,800 as compared to previous close of Rs 10,400-11,000 and Rs 10,800-11,000 per quintal, respectively.

Moong and its dal chilka local drifted Rs 300 each at Rs 7,100-7,700 and Rs 7,700-8,100 per quintal, respectively.

Its dal dhoya local and best quality enquired lower by a similar margin to Rs 8,000-8,500 and Rs 8,500-8,700 per quintal, respectively.

Masoor small and bold eased Rs 6,000-6,800 each against last close of Rs 6,200-6,900 and Rs 6,100-7,000 per quintal, respectively.

Its dal local and best quality softened to Rs 7,100-7,300 and Rs 7,200-7,400 against last close of Rs 7,400-7,600 and Rs 7,500-7,700 per quintal, respectively.

Malka local and best quality followed suit and dropped to Rs 7,300-7,750 and Rs 7,400-7,800 from previous close of Rs 8,300-8,750 and Rs 8,400-8,800 per quintal.

In line with overall trend, gram, gramdal local and best quality settled lower at Rs 4,800-5,500, Rs 5,100-5,300 and Rs 5,200-5,500 as compared to previous week’s close of Rs 5,000-5,700, Rs 5,300-5,500 and Rs 5,400-5,700 per quintal, respectively. Besin Shaktibhog and Rajdhani quoted lower at Rs 2,330 each instead of Rs 2,430 each per 35 kg bag.

The broader markets, shares of midcap and smallcap companies also jumped the wagon of selling along with its peers.

20 scrips out of the 30-share Sensex pack ended lower, while ten others closed higher.

Major losers were Axis Bank (9.65 pct), Lupin (7.38 pct), ITC (6.59 pct), Larsen (6.56 pct), Coal India (6.30 pct), HDFC (6.24 pct), SBI (6.19 pct), Gail India (5.31 pct), M&M (5.22 pct), BHEL (5.20 pct), ONGC (3.56 pct), Icici bank (3.20 pct), Bharti Airtel (2.79 pct) and VEDL (2.20 pct).

Among the S&P BSE sectoral indices, Capital Goods fell by 4.40 pct followed by Realty 3.68 pct, bankex 3.48 pct, FMCG 3.31 pct, Metal 2.98 pct, Oil&Gas 2.91 pct, Power 1.95 pct and Auto 1.30 pct.

Small-cap and Mid-cap indices also dropped by 1.77 pct and 1.47 pct respectively.

The total turnover during the week on the BSE and NSE rose to Rs 14,135.95 crs and Rs 90,401.01 crs respectively as against the last weekend’s level of Rs 11,409.59 crs and Rs 64,377.19 crs.

Marketmen attributed recovery in sugar prices to pick up in demand from bulk consumers such as soft-drink, ice-cream makers and sweet makers, triggered by ongoing festive season and higher prices by millers.

Sugar ready M-30 and S-30 traded higher at Rs 2,980-3,120 and Rs 2,970-3,110 per quintal from previous week’s closing levels of Rs 2,950-3,080 and Rs 2,940-3,070, thus showing gains up to Rs 40 per quintal.

Mill delivery M-30 and S-30 prices too improved by Rs 10 each at Rs 2,710-2,930 and Rs 2,700-2,920 per quintal.

In the millgate section, sugar Dhanora, Simbholi, Budhana, Khatuli and Thanabhavan traded Rs 20 each higher at Rs 2,760, Rs 2,920, Rs 2,770, Rs 2,920 and Rs 2,760 per quintal.

Sugar Dorala rose Rs 15 at Rs 2,770, while Kinnoni and Asmoli inched up by Rs 10 each at Rs 2,930 and Rs 2,920 per quintal.

PTI