Sensex ends 247 points down ahead of RBI policy review; Airtel, Tata Motors touch new 52-week low-- 28 Sep 2015

The BSE Sensex and NSE Nifty ended in red on Monday after trading in a narrow range in the first half.

                                         

The BSE Sensex and NSE Nifty ended in red on Monday after trading in a narrow range in the first half. However, selling pressure in blue chips dragged down benchmark indices in the second half. Sensex closed 246.66 points down at 25616.84. Nifty closed 72.80 points down at 7795.70.

In the 30-share pack, share price of Tata Motors declined the most 6.31 per cent to Rs 284.25 and hit a fresh 52-week low of Rs 283.80. Share price of Vedanta, Coal India, Sun Pharma and Infosys also lost 4.61 per cent, 3.17 per cent, 3.26 per cent and 2.84 per cent, respectively, on Monday. On the other hand, Dr Reddy’s Labs gained the most 5.37 per cent at Rs 4,185, it was followed by Lupin (up 2.18 per cent), HUL (up 1.48 per cent) and TCS (up 0.83 per cent).

Among the sectoral indices on the Bombay Stock Exchange, the BSE Metal index and BSE Auto index declined 2.60 per cent and 1.74 per cent at 6,708.35 and 17,015.39. BSE Consumer Durables and BSE Realty index jumped 2.87 per cent and 1.03 per cent at 10,801.32 and 1,341.88, respectively.

The central bank is expected to cut its key repo rate to a four-year low on Tuesday to support the domestic economy at a time when consumer inflation is at a record low, but may express caution about easing further as price risks still loom.

A Reuters poll last week showed 45 of 51 economists expect the RBI to cut the repo rate by 25 basis points to 7 per cent, its lowest since May 2011.

“There should be a 25 basis point cut in interest rate and markets may react positively to it,” said Taher Badshah, senior vice president & co-head equities at Motilal Oswal Asset Management Co.

Sun Pharmaceutical declined 3.42 per cent, while its research arm Sun Pharma Advanced Research Co Ltd (SPARC) also fell 2.54 per cent after the USFDA revoked approval for SPARC’s seizure drug, citing manufacturing quality problems at its plant.

Dr Reddy’s Laboratories bucked the trend, rising as much as 6.5 per cent, after it launched a generic version of AstraZeneca Plc’s heartburn pill Nexium in the United States on September 25.

Infosys shares declined 2.91 per cent on Monday after its rival Accenture projected first-quarter revenue below analysts’ average estimate on the back of strong dollar. Accenture forecast revenue of between $7.70 billion and $7.95 billion. Analysts were expecting revenue of $8.11 billion, according to Thomson Reuters I/B/E/S.

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