Published On: Thu, Jan 14th, 2016

Sensex ends 143 points down, Nifty below 7,500 ahead of IIP, CPI data; Axis Bank top loser

Sensex ends 143 points down, Nifty below 7,500 ahead of IIP, CPI data; Axis Bank top loser

Market breadth turned negative with 21 of the 30 Sensex components ending the day in red. Photo: Reuters

The S&P BSE Sensex ended 143 points lower in trade on Tuesday, while broader CNX Nifty managed to hold a tad above its key 7,500-mark.

The headline indices fell as risk aversion ahead of a slew of earnings, including from Tata Consultancy Services (TCS) weighed on sentiment.

Caution also prevailed ahead as economic data later in the day is expected to show consumer inflation edged up to an annualised 5.6 per cent, which would likely prevent the Reserve Bank of India to cut interest rates further for now.

“If earnings are going to be on the lower side then obviously traders will weigh heavy on the market, but there is also a complete absence of buying at least in the frontline stocks,” said Deven Choksey, managing director at KR Choksey Securities.

The 30-share index ended the day at 24,682.03, down 143.01 points, while broad-based 50-share index quoted 7,510.30, down 53.55 points.

Market breadth turned negative with 21 of the 30 Sensex components ending the day in red.

Axis Bank was the worst performing stock on Sensex and ended 2.5 per cent down on Bombay Stock Exchange (BSE) after Deutsche Bank cut its target price on the stock to Rs 500 from Rs 650. 

Stock of TCS lost 2.20 per cent ahead of its December quarterly earnings to be announced later in the day post market hours.

Aviation stocks, however, defied the downtrend and rose on falling crude prices. Jet Airways gained 3.25 per cent as crude, the biggest cost for airlines, fell below $31 a barrel.

Among Asian markets, China’s Shanghai Composite ended with an uptick of 0.20 per cent, while Hong Kong’s Hang Seng index settled 0.89 per cent down. Japan’s Nikkei lost 2.71 per cent at close.

Overnight, US stocks closed mixed, stabilizing after their worst week since 2011, as declines in commodity prices weighed.

[Source:- business today]