Sensex hits 3-month low on commodities slide, GST worries

Mumbai :Domestic markets plunged to a three-month low as the BSE Sensex on a fifth straight session today slipped by 220 points after domestic commodity stocks took a beating on multi-year low oil prices while fresh concerns over passing of key reform bills mainly GST added to the rout.

Globally, oil struggled at a seven-year low as OPEC decided not to slash output. Consequently, BSE oil&gas index plunged by 2.14 per cent.

GAIL was the worst performer from the 30-share Sensex pack, followed by Vedanta, Hindalco, Tata Steel and ONGC. Besides, sustained foreign funds outflows and weakness in the rupee spoiled the market mood.

Analysts said fresh bickering between the government and the main opposition party Congress over the National Herald case could jeopardies the prospects of GST bill in the Winter Session of Parliament.

“Further, growing concerns that GST in its present form may not be the panacea that industry has been long expecting, is also keeping investors cautious,” said Anand James Co Head Technical Research Desk at Geojit BNP Paribas.

After shuttling between 25,256.79 and 25,542.47, the 30-share Sensex ended the day down by 219.78 points or 0.86 per cent at over three-month low of 25,310.33.

The index had closed at 24,893.81 points on September 7.

With today’s 220-point drop, the 30-share barometer has shed around 860 points in the last five sessions.
The broad-based NSE Nifty after dipping below the crucial 7,700-mark to touch a low of 7,685.45, settled 63.70 points or 0.82 per cent down at 7,701.70.

With a slump of over 5 per cent, GAIL was the biggest loser among Sensex and Nifty stocks as the company mulls shutting down of coal-based power plants near metro cities.

Other laggards included Vedanta, Hindalco, Dr Reddy’s, ONGC, Tata Steel, Coal India, BHEL, L&T, RIL, SBI, Lupin, Wipro, Lupin, M&M, HDFC, Hero MotoCorp, HUL, Sun Pharma, ICICI Bank, Axis Bank, Bharti Airtel, Cipla and Maruti Suzuki.

However, shares of Tata Motors, Bajaj Auto, ITC and TCS ended in the positive zone.

In broader markets, the small-cap index shed 1.33 per cent and mid-cap slipped 1.17 per cent.

Global cues were also depressed as stocks took a beating after Chinese data on imports and exports reinforced worries about the health of the world’s number two economy at the same time as US considers raising interest rates.
Key indices in Asia, like China, Hong Kong, Japan, South Korea, Singapore and Taiwan moved down by 0.75-1.89 per cent.

The key indices in Europe, like France, Germany and the UK fell by 0.64 per cent to 0.80 per cent.

Back home, 26 scrips out of the 30-share Sensex pack ended lower.

“Crude oil prices hitting new lows, continued selling pressure from domestic and foreign investors and hindrance in smooth functioning of winter session of Parliament causing concerns on passing of key reform bills mainly GST dampened the sentiment,” said Gaurav Jain Director of Hem Securities.

Major losers were GAIL (5.05 pc), Vedanta (4.60 pc), Hindalco (4.35 pc), Tata Steel (3.61 pc), ONGC (3.57 pc), Dr Reddy’s (3.44 pc), Coal India (2.93 pc), BHEL (2.63 pc), M&M (1.54 pc), Lupin (1.53 pc), L&T (1.41 pc) SBI (1.36 pc), HDFC (1.23 pc), HDFC Bank (1.23 pc) and RIL (1.18 pc).

However, Tata Motors rose by 0.74 per cent followed by Bajaj Auto 0.55 per cent, ITC 0.53 per cent and TCS 0.23 per cent.

Among BSE sectoral and industries, realty fell by 3.69 per cent followed by metal 3.25 per cent, utilities 2.25 per cent, oil&gas 2.14 per cent, energy 1.80 per cent, power 1.80 per cent and capital goods 1.46 per cent.

The market breadth continued to stay negative as 1,879 ended lower, 877 closed higher while 149 ruled steady. The total turnover rose to approximately Rs 2,761 crore from Rs 2,663.22 crore yesterday.