Sensex ends 80 pts lower; bank, IT stocks drag
The BSE benchmark Sensex on Thursday ended 80 points lower as losses in banking and IT counters negated the upswing in auto counters.
After rising over 174 points in early session, the 30-share index failed to sustain the momentum and gave up all gains to end 80.32 points, or 0.22 per cent, lower at 36,644.42. It hit an intra-day high of 36,898.99 and low of 36,541.88.
The broader Nifty, on the other hand, ended 3.25 points, or 0.03 per cent, higher at 10,847.90.
Top laggards in the Sensex pack included HDFC, ICICI Bank, TCS, HCL Tech, Kotak Bank, Asian Paints, TechM and HUL, dropping up to 2.67 per cent.
On the other hand Tata Motors, ONGC, Yes Bank, NTPC, Maruti, M&M, Vedanta, Tata Steel and Bajaj Auto rallied up to 7.81 per cent.
Auto stocks capped the losses on both benchmarks after Union Transport Minister Nitin Gadkari assured the crisis-hit auto industry of all possible support, including taking up the demand of GST reduction with Finance Minister Nirmala Sitharaman.
He also stated that the government had no intention to ban petrol and diesel vehicles, clearing the air after rumours were doing the round that the move to push e-mobility will result in end of the road for traditional petrol and diesel vehicles.
Market opened in green following positive global cues from Asian markets as withdrawal of a controversial extradition bill in Hong Kong and on the back of news that the US and China had agreed to meet in early October for another round of trade negotiations, Narendra Solanki, Head Fundamental Research (Investment Services) - AVP Equity Research, Anand Rathi Shares & Stock Brokers, said.
However, the global positive cues failed to sustain momentum by noon as domestic sentiments turned pessimistic following a cut in GDP growth estimates by Crisil, he said, adding that the market seemed lacking direction by end of day's trade as it awaits some more policy announcements from the government.
Stating that the slowdown as deeper and more broad-based than suspected, domestic rating agency Crisil on Wednesday cut its GDP forecast for FY20 to 6.3 per cent from 6.9 per cent earlier.
On sectoral front, the rally was witnessed in metals, auto, media and pharma stocks while the decline was led by realty and financials, he said.
Elsewhere in Asia, Hang Seng gave up all its gains to end a tad lower, while Shanghai Composite Index, Nikkei and Kospi settled up to 2.12 per cent higher.
Exchanges in Europe were also trading on a mixed note their respective early sessions.
The Indian rupee appreciated 23 paise (intra-day) to trade at 71.88 per US dollar. Global oil benchmark Brent crude rose 0.23 per cent to 60.84 per barrel (intra-day).
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