Sensex ends lower at 39,020, Nifty below 11,600; key reasons

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Updated: October 24, 2019 4:37:30 PM

The benchmark equity indices -- Sensex and Nifty -- ended on a negative note tracking fall in banking and IT heavyweights such as Infosys, State Bank of India, HDFC Bank and IndusInd Bank.

Both the Sensex and Nifty lost about 1% on ThursdayThe brent crude futures, the global oil benchmark, fell 0.47 per cent to .88 per barrel.

The benchmark equity indices — Sensex and Nifty — ended on a negative note tracking fall in banking and IT heavyweights such as Infosys, State Bank of India, HDFC Bank and IndusInd Bank, mixed results in Haryana and Maharashtra polls and Supreme Court’s verdict against telecom companies in AGR. However, Reliance Industries, Bharti Airtel and HCL Technologies were the major gainers in the trade today. Sensex ended the intraday trade 38.44 points lower at 39,020.39, while Nifty settled below 11,600. Shares of Infosys ended 2.36 per cent lower after SEBI and the US Securities and Exchange Commission initiated investigation following whistleblower complaints that alleged “unethical practices” by top management of the company.

“The market fall was triggered by the SC verdict against Telecom Companies which impacted many banks who have lent to these companies. Election cues played a relatively minor part,” invest advisor Sandip Sabharwal told Financial Express Online.

“The fall in the market was led by the negative impact of the supreme court ruling on telecom companies like Vodafone idea. In case, the company faces trouble in paying money to the govt we expect a negative impact on the banking sector as more than Rs. 2 lakh cr of loans have been given to the telecom sector. The lower than expected seats especially in Haryana did play a part in dampening the overall sentiments,” Abhimanyu Sofat, Head of Research, IIFL, told Financial Express Online.

While the BJP-Shiv Sena alliance emerged clear winners in Maharashtra, Haryana remained unclear as none of the major parties gained a majority. The Supreme Court on Thursday allowed the Centre’s plea to recover adjusted gross revenue (AGR) of about Rs 92,000 crore from them. A three-judge bench upheld the definition of adjusted gross revenue formulated by the Department of Telecom (DoT).

Meanwhile, the Indian rupee depreciated 11 paise to 71 against the US dollar intraday. The brent crude futures, the global oil benchmark, fell 0.47 per cent to $60.88 per barrel.

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