1. Sensex, Nifty snap 3-day winning streak; telecom stocks hog limelight

Sensex, Nifty snap 3-day winning streak; telecom stocks hog limelight

Benchmark indices BSE Sensex and NSE Nifty snapped their three-day winning streak on Thursday on account of some selling pressure in last hour of trade.

By: | New Delhi | Published: September 1, 2016 4:43 PM
Sensex, Nifty, bse, nse Benchmark indices BSE Sensex and NSE Nifty snapped their three-day winning streak on Thursday on account of some selling pressure in last hour of trade. (Photo: Reuters)

Benchmark indices BSE Sensex and NSE Nifty snapped their three-day winning streak on Thursday on account of some selling pressure in last hour of trade. The 30-share index closed 28.69 points down at 28423.48, while Nifty 50 index settled 11.55 points down at 8774.65. Among the 51-components in the Niifty index, GAIL gained the most — 2.21 per cent, followed by Lupin (up 1.67 per cent), M&M (up 1.49 per cent) and UltraTech Cement (up 1.40 per cent). On the other hand, Idea Cellular, Bharti Airtel, Reliance Industries, BHEL and BPCL dipped 10.91 per cent, 6.48 per cent, 3.01 per cent, 2.88 per cent and 2.35 per cent, respectively.

Sectorwise, the BSE Auto, Metal and FMCG index gained 0.35 per cent, 0.32 per cent and 0.21 per cent, respectively. On the other hand, BSE Telecom, Realty and TECk index slipped by 5.67 per cent, 2 per cent and 1 per cent, respectively. Telecom shares came under pressure after Reliance Jio announced free voice calls and cheaper data tariff for customers. Idea Celullar shares tanked 10.48 per cent to Rs 83.70, while Bharti Airtel dipped 6.37 per cent to Rs 310.70.

Jayant Manglik, president, retail distribution, Religare Securities said, “The reason behind lacklustre trade was muted economic growth and core sector data, released post market on Wednesday. But, highlight of the day was the Reliance AGM, where management made announcements related to their new telecom venture “Jio” along with updates on existing business. Amid all, stock specific action kept the traders busy.”

India’s economic growth slowed to 7.1 per cent in the April-June quarter. The growth rate dipped to 6-quarter low of 7.1 per cent in April-June, as compared to 7.9 per cent in the previous quarter, mainly due to subdued performance of mining, construction and farm sectors. The economy had expanded at 7.5 per cent in the April-June quarter of last financial year, 2015-16. Also, the core sector growth slowed to 3.2 per cent in July, compared to 5.2 per cent recorded in June.

Upbeat manufacturing activity data failed to cheer markets on Thursday. India’s manufacturing activity expanded at its fastest pace in 13 months in August, with pickup in demand from domestic and external markets. The seasonally adjusted Nikkei India Manufacturing Purchasing Managers’ Index (PMI) – a composite single-figure indicator of manufacturing performance – advanced to 52.6 in August from 51.8 in the previous month.

Other Asian peers also ended mostly in red on Thursday. Shanghai closed lower by 0.72 per cent. However, Hang Seng and Nikkei settled higher by 0.81 per cent and 0.23 per cent.

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