Indian stock market closed in red on Thursday following a selloff in banking stocks after the Reserve Bank of India yesterday slashed the repo rate by 25 basis points to 6% in its latest credit and monetary policy review. Market experts said investors were unmoved as the rate reduction was already priced in while a weak Asian trend led to the correction. BSE Sensex ended 238 points down at 32.237.88 points and NSE Nifty settled 67 points lower at 10,013.65 points.
Stocks of the heavyweight companies HDFC, ICICI Bank, HDFC Bank, ITC, SBI, Infosys, Axis Bank, Tata Motors, Kotak Mahindra Bank dragged the benchmark Sensex. Collectively these shares contributed 240 points in the index loses while Reliance Industries, TCS and Bharti Airtel trimmed the losses. All the sectoral indices of NSE ended in red with the banking indicators losing the most. Nifty PSU Bank was down 2.91%, Nifty Bank fell 1.66% while Nifty Pvt Bank ended 1.64% lower.
Other indices that settled lower are Nifty Metal (down 1,95%), Nifty Pharma (down 1.49%), Nifty Fin Service (down 1.45%), Nifty Realty (down 0.85%), Nifty Auto (down 0.64%), Nifty IT (down 0.48%), Nifty Media (down 0.43%), Nifty FMCG (down 0.28%).
Shares of Indian Oil Corporation rose over 6% which is the biggest intraday gain since 25 January 2017 after the petrochemical company reported a 19.44% rise in the total income. The stock also gained since the morning trade as the government has asked all the state oil companies to keep increasing prices of subsidised kerosene by 25 paise every fortnight.
The stock of IOC surged 6.72% to the day’s high of Rs 395 on NSE. The shares of Hindustan Petroleum Corporation and Reliance Industries hit their 52-week highs on the back of kerosene subsidy elimination at Rs 407.5 and 1,664.9 respectively.
The state-owned Indian Oil Corporation today reported almost halving of its standalone net profit in the June quarter of the current fiscal, mostly due to drop in refining margins. The net profit in the April-June quarter stood at Rs 4,548.51 crore was 45% lower as compared to the net profit of Rs 8,268.98 crore in the same quarter of previous year.
Shares of Colgate-Palmolive India rose as much as 4.69% to Rs 1,088 on NSE after the FMCG major today reported a 8.47% rise in net profit to Rs 136.38 crore for the first quarter ended June 30. Power Finance Corporation today said its board will meet next week to consider an issue of bonus shares as per the government’s guidelines on capital restructuring of CPSEs.
Findings of a monthly survey released today made the mood more downbeat, which showed that services PMI for July fell to its lowest level in nearly four years following implementation of GST. The Nikkei India Services Purchasing Managers’ Index (PMI), a pointer to services output on a monthly basis, plunged to 45.9 in July, the lowest since September 2013, from June’s eight-month high of 53.1.
In New York overnight, the Dow Jones Industrial Average topped the 22,000 mark for the first time on the strength in Apple shares following its earnings. Apple jumped 4.73% to a record high after the world’s largest publicly listed company reported strong results. It is up 36 percent this year. The Dow Jones Industrial Average rose 0.24% to end at 22,016.24, a record high. The S&P 500 gained 0.05% to 2,477.57 and the Nasdaq Composite was flat at 6,362.65.