Mumbai: The BSE Sensex could not see any resurrect on Monday even after falling in previous five consecutive weeks. Rising bond yields, falling rupee and GAAR issues remained tricky aspects leading to yet another weak closing.
The BSE benchmark fell 308.96 points or 1.78 per cent to close at 17,052.78, with all 30 stocks closing in the red. The NSE benchmark closed down 93.95 points or 1.78 per cent at 5,184.25, underperforming global peers. European markets were moderately higher.
The Indian rupee depreciated by 25 paise to 51.42 a dollar while 8.79 per cent 2012 yield rose by 0.05 to 8.42 ahead of announcement of government's market borrowing calendar for first half of FY 2013 this week.
According to Ambareesh Baliga of Way2wealth, the market is surely worried due to some of promissory-notes selling and some sort of advance selling by local investors.
With new General Anti-Avoidance Rules (GAAR) coming into effect from April 1, which will make P-Note based transactions taxable, the market saw widespread selling by foreign institutional investors. Foreign institutional investors (FIIs), including Mauritius based FIIs, will need to revaluate all PNs/ offshore derivative instruments now.
Baliga further said, the market could break most important 200 day moving average at about 5170 and could look at levels of about 5000-5050.
All sectoral indices closed in the red; the BSE Realty hit quite badly, falling 3.6 per cent. Power, Bank, Metal, Oil & Gas and Capital Goods indices were down 1.8-2.6 per cent.
ICICI Bank, country's largest private sector lender plunged 4.3 per cent while rivals State Bank of India and HDFC Bank fell 1-2 per cent. Housing finance company HDFC slipped 1.5 per cent.
Oil & gas producers and index heavyweights Reliance Industries and ONGC dropped 2 per cent each. Engineering and construction major Larsen & Toubro was down 1.77 per cent and state-run Bharat Heavy Electricals lost 3 per cent.
Tata Consultancy Services and Infosys, India's top software service exporters were down 1.7 per cent while telecom player Bharti Airtel tumbled 2.3 per cent.
NTPC, country's largest power generation company and Tata Power, No. 1 private power producer plummeted over 3.5 per cent.
Shares of Bajaj Auto, Sterlite, Cipla and DLF among other largecaps tanked 3.5-4 per cent.
However, Kotak Mahindra Bank rose 1 per cent post block deal. Warburg Pincus sold 2.65 crore shares at Rs 530 a share on BSE via block deal.
Jaiprakash Associates outperformed other infrastructure stocks, rising 3 per cent after the company received two contracts worth Rs 913 crore.
In the second line shares, Indiabulls Real Estate and HDIL plunged 6-7 per cent after cash strapped Maharashtra government proposed to hike stamp duty on leave-license to 0.1 per cent on market value or 1 per cent of the average annual rent or deposit paid, whichever is higher, for residential properties. For commercial properties, the duty proposed is 0.4 per cent for lease agreements over 60 months. This is a whopping 160 times hike from the previous fixed amount of Rs 25,000 for residential and Rs 50,000 for commercial properties for 60 months.
EIH Associated Hotel shot up 6 per cent amid heavy volume as the company will consider rights issue and merger of company's wholly owned unit, Maharaj with itself.
Manappuram Finance crashed 11 per cent today, which had fallen 20 per cent last week after the RBI tightened rules for gold financing companies
About two shares declined for every share gaining on the BSE. The BSE Midcap and Smallcap indices were down 1.4-1.6 per cent.
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