Sensex down for fourth day; trips 108 pts as ITC leads fall

Mumbai :Ignoring upbeat global cues, the BSE Sensex fell for a fourth straight session today logging a fall of 108 points as cigarette maker ITC slumped 6.5 per cent on concerns over higher taxation rate on tobacco products.

Global cues were largely positive on heightened expectations of a first rate hike in nearly a decade by the US Federal Reserve.

“The higher-than-expected US non-farm payroll data has strengthened the possibility for a Fed rate hike. But this has negatively impacted the buying behavior of domestic investors led by volatility in the rupee,” said Vinod Nair Head Fundamental Research at Geojit BNP Paribas Financial.

Bogged down by sustained foreign fund outflow, the market benchmark index has lost 639.30 points since Wednesday.
The BSE barometer after rising 147 points in early trade to hit a high 25,785.53 slipped into the negative zone after stocks of ITC led the fall and touched a low of 25,477.69.

Finally, it settled 108 points or 0.42 per cent lower at 25,530.11, its lowest level since November 18.

The NSE Nifty after rising past 7,800-mark to touch a high of 7,825.40 points in early trade, succumbed to profit-booking and ended 16.50 points or 0.21 per cent down at 7,765.40.

ITC ended lower by 6.57 per cent to Rs 313.55 on BSE after a GST panel recommended a sin or demerit rate of about 40 per cent on paan masala, tobacco and tobacco products.

Selling was also seen in other brands such as Godfrey Phillips, which plunged 4.90 per cent and VST Industries, that dipped 2.85 per cent.

In overseas stock markets, Asian and European stocks edged higher after Wall Street welcomed an upbeat US jobs report that suggested the world’s biggest economy was well placed to handle an expected increase in interest rates.

Key indices in Asia, like China, Japan, Singapore and Taiwan moved up by 0.34 per cent to 0.99 per cent while indices in Hong Kong and South Korea moved down by 0.15 per cent to 0.54 per cent.

Key indices in Europe, like France, Germany and the UK rose by 0.61 per cent to 1.77 per cent.

PTI