Sensex down 127 points, IT stocks hit
A benchmark index for Indian equities markets was trading 0.76 per cent or 127.80 points down around 1 p.m. on Tuesday, led by selling pressure in information technology (IT), capital goods and auto stocks.
The markets were down due to profit booking by traders following Monday's gains that came after Finance Minister Pranab Mukherjee deferred the general anti-avoidance rules (GAAR) by a year and said the burden of proving tax evasion will lie with the authorities rather than with overseas investors.
IT stocks were hit after investment bank JP Morgan downgraded the country's largest outsourcing firm TCS from 'overweight' to 'neutral'.
The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened in the positive at 16,915.71 points, was ruling at 16,784.91 points at 1.00 p.m., down by 0.76 per cent or 127.80 points from its previous close of 16,912.71 points.
The Sensex touched a high of 16,918.31 points and a low of 16,742.07 points in the intra-day. The Sensex midcap was up by 5.25 points and smallcap grew by 14.37 points.
There was heavy selling pressure in IT, capital goods and auto stocks.
The BSE IT index was down by 3.12 per cent or 178.33 points followed by capital goods index down by 1.31 per cent or 120.90 points; auto index was down by 1.19 per cent or 120.95 points.
IT majors like TCS stocks were down by 5.33 per cent at Rs.1,206, Infosys down 2.25 per cent at Rs.2,376 and Wipro down 1.81 per cent at Rs.404.50.
Auto stocks were also down with Tata Motors' scip, down by 2.24 per cent at Rs.301.40, Mahindra and Mahindra, down by 1.79 per cent at Rs.678.75, Maruti Suzuki, down by 0.76 per cent at Rs.1,304.65, Bajaj Auto, down by 0.69 per cent at Rs.1,505 and Hero MotoCorp, down by 0.66 per cent at Rs.1,944.
Other major Sensex losers included BHEL, down 3.13 percent at Rs.220.10, Jindal Steel, down 2.06 per cent at Rs.490.90, Sterlite Inds, down 1.66 per cent at Rs.100.85, Tata Power, down 1.57 per cent at Rs.100.15, Larsen and Toubro (L&T), down 1.56 by per cent Rs.1,184.10 and HDFC Bank, down 1.53 per cent at Rs.524.
Only eight companies out of the 30-scrip sensitive Sensex were gaining. Major gainers included Gail India, up 3.04 per cent at Rs.328.50, DLF, up 2.95 per cent at Rs.195.35, Coal India, up 2.50 per cent at Rs.336.40, ITC, up 1.39 per cent at Rs.240 and Hindustan Uniliver, up 1.21 per cent at Rs.435.
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