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Profit-booking drags BSE Sensex lower, NTPC tanks 11 per cent

Profit-booking drags BSE Sensex lower, NTPC tanks 11 per cent

The 30-share index of the Bombay Stock Exchange, which had climbed to an all-time closing high of 21,326.42 in the previous session, fell by 71.16 points, or 0.33 per cent to 21,255.26. Intra-day, the gauge moved between 21,175.08 and 21,327.75.

BT Online Bureau
  • Mumbai,
  • Updated Dec 10, 2013 4:54 PM IST
Profit-booking drags BSE Sensex lower, NTPC tanks 11 per cent
The BSE Sensex fell for the first time in four days, closing 71.16 points down, hurt by losses in power, capital goods and banking shares, amid profit-booking after the recent rise took it to a record high.

Trading sentiment was also dampened on a weakening Asian trend and lower opening in Europe as reports said Chinese industrial production rose less-than-estimated last month.

Apart from these factors, markets also saw selling pressure after Fitch expressed fears that the defeat of Congress in four of the five state assembly polls could lead to higher fiscal deficit target as the government would be constrained to curb expenditure.

The 30-share index of the Bombay Stock Exchange, which had climbed to an all-time closing high of 21,326.42 in the previous session, fell by 71.16 points, or 0.33 per cent to 21,255.26. Intra-day, the gauge moved between 21,175.08 and 21,327.75.

The 50-share National Stock Exchange index Nifty fell by 31.05 points, or 0.49 per cent, to end at 6,332.85. It had climbed to a record high of 6,363.90 on Monday.

Also, SX40 index, the flagship index of MCX-SX, dropped 18.59 points or 0.15 per cent to end at 12,616.20.

Bluechips, including ICICI Bank, L&T and BHEL, slid 3-4 per cent after market participants book profits in the backdrop of 618-point surge in Sensex in the previous three days. However, rise in IT stocks capped the index's losses.

Shares of NTPC, which tanked over 11 per cent, led power sector lower on worries the proposed electricity tariff regulation would hit earnings.

NHPC, Power Grid and SJVN fell in 1-3 per cent range. Private sector peers, Reliance Power and Tata Power also logged losses.

"CERC has announced its draft tariff regulations for FY15-19... We see huge negative impact for NTPC mainly from shift of incentives to PLF from PAF and no tax grossing up of RoE. However, we see lower impact for PGCIL, NHPC and SJVN," said Amit Golchha, Research Analyst, Emkay Global Financial Services in a report.

Sectorally, besides BSE Power - which fell 4.12 per cent - BSE Capital Goods index slipped by 2.98 per cent, BSE Banking index lost 1.78 per cent and BSE Realty index by 1.48 per cent.

With inputs from PTI

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Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Published on: Dec 10, 2013 10:19 AM IST
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