Market update: Sensex, Nifty reverse initial trends on SC ruling on coal blocks allocation

The BSE Sensex and Nifty hit new lifetime highs but fag-end selling due to Supreme Court's ruling on coal block allocations hit investor sentiment.

While the NSE index closed in red, the BSE barometer closed with a marginal 17-point gain at a new peak on closing basis.

The 30-share Sensex, which had rallied by over 105 points in the past two sessions, climbed to hit an intra-day record high of 26,630.74, surpassing its earlier record of 26,530.67 reached on August 19. However, emergence of across-the-board selling towards the close, trimmed most of day's gains and it closed 17.47 points, or 0.07 per cent, higher at 26,437.02 - crossing its previous closing record of 26,420.67 recorded on August 19.

The 50-share Nifty after opening on a strong footing, climbed to hit an all-time high of 7,968.25, surpassing earlier record high of 7,929.05 reached on August 22. Late selling wiped off its initial gains completely and it ended 6.90 points, or 0.09 per cent, down at 7,906.30.

Prominent losers in the Sensex include Hindalco that plunged 9.56 per cent, Sesa Sterlite 3.89 per cent, Tata Steel 4.79 per cent, Tata Power 3.42 per cent, ICICI Bank 1.52 per cent, GAIL 1.18 per cent, NTPC 0.28 per cent, RIL 0.17 per cent, SBI 0.57 per cent and Tata Motors 0.63 per cent.

Sectorwise, BSE Metal index suffered the most by losing 4.34 per cent, followed by Realty 2.01 per cent and Power Index 1.24 per cent.

"Market sentiment was strong till mid-session, however, post the Supreme Court's decision, stating coal allocation since 1993 till 2010 as illegal, triggered strong selling in select stocks like Hindalco and JSPL. Other sectors, including power and some mid-caps also followed suit," said Nidhi Saraswat, Senior Research Analyst, Bonanza Portfolio.

Stocks of Maruti Suzuki ended 1.71 per cent after reports said Credit Suisse raised its target price.

Foreign Portfolio Investors (FPIs) bought shares worth a net Rs 302.06 crore last Friday according to provisional data from the stock exchanges.

Asian markets mostly rose Monday while the dollar hit multi-month highs against the yen and euro after the US Federal Reserve chief seemed to indicate a shift towards an interest rate rise sooner than expected.