Sensex drops 73 pts on selling in HDFC Bank, Reliance

Mumbai: Ignoring firm global cues, BSE Benchmark Sensex dropped 73 points on Monday, dragged down by index heavyweights such as private sector lender HDFC Bank and energy-to-telecom conglomerate Reliance Indutries (RIL).

Half of the Sensex components closed lower. HDFC Bank (67.04 points) and RIL (33.18 points) contributed the most to Sensex’s losses, as they fell 1.28 per cent and 0.74 per cent, respectively.

IT major Tata Consultancy Services (TCS) (23.56) followed next, as it fell 1.06 per cent.


Market at a glance
The 30-share Sensex closed 0.18 per cent, or 72.50 points lower at 40,284.19, while the 50-share Nifty closed almost unchanged. It shed 1.20 points to 11,894.25.

Market breadth marginally favoured the bears, as losers beat gainers ones in the ratio of 1.2:1 on BSE.

BSE Midcap index and BSE Smallcap index outperformed benchmark Sensex, and closed 0.44 per cent and 0.27 per cent, higher respectively.

BSE Telecom index was the top sectoral gainer with a 3.41 per cent rise on hopes that the government may dole out a relief package for the ailing sector. Vodafone Idea and Bharti Airtel jumped 22.55 per cent and 4.60 per cent respectively.

BSE Metals index followed next with a 1.71 per cent gain.

Drug maker Glenmark Pharmaceuticals gained most since its IPO and rallied 21.35 per cent after global brokerage firm CLSA upgraded the stock, and also raised the target price.

Analysts’ views
“With lack of any major positive triggers, both on domestic and global front, we continue to maintain a cautious stance on Indian market. In the near term, investors will keep an eye on the progress of trade talks between the US and China, behaviour of crude oil prices and fluctuation in the rupee. We would advise investors to focus on fundamentally sound companies with strong financials and healthy prospects,” Ajit Mishra Vice President, Research, Religare Broking

Global market
Asian shares ticked higher after Beijing surprised markets by trimming a key interest rate for the first time since 2015, stirring speculation that further stimulus was on the way for the world’s second-largest economy, Reuters reported.
MSCI's broadest index of Asia-Pacific shares outside Japan moved 0.3 per cent higher.
European shares edged closer to a record level on Monday, as optimism around US-China trade talks and the surprise move by China’s central bank painted an upbeat picture about global growth, according to a Reuters report.

The pan-European STOXX 600 index rose 0.17 per cent by 0814 GMT, extending gains after its six-week winning streak.