Sensex retreats from 1-mth high, closes 98 pts down, logs first drop in six days

Written by Press Trust of India | Mumbai | Updated: Oct 27 2014, 22:08pm hrs
Sensex and niftySensex had rallied 851.71 points in previous five sessions after government announced energy sector reforms. (AP)
Retreating from one-month highs, the BSE benchmark Sensex today fell 98 points in its first drop in six sessions on late selling in bluechips, including Tata Motors, Hindustan Unilever (HUL) and Reliance Industries (RIL), amid mixed global cues.

After opening in positive zone on sustained foreign capital inflows and hopes of more economic reforms, the Sensex slipped on selling in heavy-weights and ended 98.15 points, or 0.37 per cent, at 26,752.90. Intra-day, it had touched a high of 26,994.96 while later slumping to a low of 26,726.84.

The gauge had rallied 851.71 points in previous five sessions after government announced energy sector reforms.

The 50-scrip NSE Nifty, after rising to 8,064.40 points in early trade, succumbed to profit-booking and slipped below 8,000-mark. It ended lower by 22.85 points, or 0.29 per cent, at 7,991.70. Intra-day, it had touched low of 7,985.65.

"Indian markets started the day well but lost all the gains as German business confidence fell and Goldman Sachs slashed 2015 oil target," said Rajshekar Gowda, Senior Analyst, HBJ Capital.

Selling was more pronounced in realty, oil & gas, FMCG, teck, auto, IT and metal sector stocks, which pulled down the Sensex and Nifty.

Stocks of FMCG giant, Hind Unilever tumbled about 4.92 per cent after it forecast softer demand environment.

Oil & Natural Gas Corp (ONGC) and RIL shares fell tracking lower oil prices projection. Cipla, Hero Moto, Sun Pharma, Tata Motors, Tata Steel, Infosys Ltd, TCS and Wipro were among other Sensex losers.

In the overall 30-share Sensex pack, 17 dropped while 13 rose. BHEL was the top gainer as it rose 4.98 per cent.

Shares of realty giant DLF slumped 7.84 per cent on concerns the company may face probe in Haryana land deals.

Bucking the trend, stocks of companies involved in defence sector like BEML rallied 5 per cent after projects worth Rs 80,000 crore were cleared by the government.

Sectorally, the BSE Realty sector index suffered the most by losing 3.79 per cent, followed by Oil & Gas 1.45 per cent, FMCG 1.06 per cent, Auto 0.79 per cent, IT 0.54 per cent and Metal 0.23 per cent. However, Consumer Durables rose 2.11 per cent, Capital Goods 0.70 per cent and Bankex 0.48 per cent.

Trend in rest of Asia remained mixed and European markets were down in opening trade.