Markets crack from lifetime high on profit-booking, close week in green

Written by fe Bureau | Mumbai | Updated: Jul 26 2014, 18:24pm hrs
BSE SensexOn Friday, the 30-share BSE Sensex closed 145.10 points or 0.55% down at 26,126.75 points, snapping its eight-day gaining streak.
The benchmark indices ended in the red on Friday after hitting record highs. The 50-unit S&P CNX Nifty slipped below the psychological 6,800-mark on Friday. The BSE benchmark Sensex ended the week in the green.

On Friday, the foreign institutional investors (FIIs) bought shares worth $21.27 million, while the domestic institutional investors sold shares worth $35.59 million, according to provisional data on the exchanges. FIIs have been net buyers in each of the last eight session, with their purchases totalling up to $836 million. In YTD, FIIs bought shares worth $12.13 billion.

On Friday, the 30-share BSE Sensex closed 145.10 points or 0.55% down at 26,126.75 points, snapping its eight-day gaining streak. Meanwhile, the broader 50-share Nifty declined 40.15 points or 0.51% to close at 7,790.45 points. Earlier in the session, Sensex and Nifty touched their lifetime highs of 26,300.17 and 7,840.95, respectively.

The profit booking fall was led by declines in Tata Motors and Wipro, with each scrip falling more than 4%. Shares of the IT services provider Wipro fell 4.59% to post its biggest single-day fall in three months after the Q1 earnings slightly missed the estimates. The Bangalore-based firm saw Q1 net profit rising 29.57% y-o-y at R2,103 crore, while its revenues grew 14% y-o-y at R11,136 crore. The Bloomberg consensus estimates had expected the revenue at R11,375 crore. Among other Sensex scrips, Bhel (-4.02%), Hindalco (-2.91%) and Tata Power (-2.51%) were among the major losers.

It was a positive week, with the benchmark indices advancing in 4 out of 5 sessions and Sensex ending lower by 1.9%, or 566.07 points. On Tuesday, the 30-share Sensex gained 1.2% with telecom stocks leading the rally after the sector regulator Trai issued guidelines for spectrum sharing.

Asian markets showed a mixed trend on Friday. The Straits Times (-0.11%), Jakarta Composite (-0.19%) and Taiwan Taiex (-0.93%) ended in the red, while the Kospi (0.36%), Hang Seng (0.31%) and Nikkei (1.13%) ended in the green.

Back home, 19 of the 30 Sensex stocks ended in the red on Friday. In the broader market, the breadth was weak with 2003 stocks trading on BSE ending lower compared with 918 advances. Most of the 13 BSE sectoral indices ended in the red. The BSE Metal (-2.33%), BSE Realty (-2.68%), BSE Consumer Durables (-1.39%) and BSE Bankex (-1.35%) were among the major losers. The NSE cash turnover on Friday was at R18,437.30 crore, while the turnover in the F&O segment stood at R2.87 lakh crore.

CNX Pharma ends at lifetime high

Even as markets ended lower, CNX Pharma gained 2.8% to end at lifetime high of 9,168.15 points. Glenmark (6.68%), Sun Pharma (4.62%), Ranbaxy (4.02%), Lupin (3.07%) and Cadila (2.47%) were among the major gainers. Experts remain upbeat on the pharma sector. "Strong fundamentals are reflected in valuations as our coverage trades at 10% above median. Excluding Sun Pharma and Lupin, Pharma sector trades near median, Axis Capital said in a report.