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After Market: Infosys, TCS create records; realty stocks take big hit

A rise in Indian bond yield and strengthening dollar lured investors away from Indian stocks.

Sep 04, 2018, 05.01 PM IST
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NEW DELHI: Frontline equity index Sensex fell for the fifth consecutive session on Tuesday on profit booking amid a buzz of capital outflow due to rupee’s poor health, Sebi’s new KYC norm for FPIs and uninspiring global cues.

Rupee’s poor health hit market’s risk appetite as the domestic currency hit a fresh record low of 71.54 against the greenback on Tuesday, raising speculations that RBI may go for another rate hike in October policy review.

A rise in Indian bond yield and strengthening dollar also lured investors away from Indian stocks.

The Sensex fell for 155 points, or 0.40 per cent, to finish at 38,157, with just six stocks advancing and 25 declining. NSE’s Nifty50 closed the day 62 points, or 0.54 per cent, down at 11,520, leaving nine stocks in the green and 41 in the red.

Let’s walk you through the key highlights of today's session:

Top Sensex gainers and losers
Only six index stocks – Infosys (up 2.64 per cent), TCS (1.86 per cent), Wipro (1.42 per cent), Axis Bank (1.39 per cent), Reliance Industries (0.97 per cent) and HDFC (0.79 per cent) – managed to settle with gains. Asian Paints (down 3.49 per cent), State Bank of India (3.20 per cent), Adani Ports (2.95 per cent), Hindustan Unilever (2.80 per cent) and Coal India (2.61 per cent) were the top five losers in the Sensex pack.

Rupee's sustained fall
The rupee now stands as Asia’s worst performing currency, falling over 10 per cent this year, mainly because of surging crude oil prices, trade war worries and precarious health of emerging market currencies. The rupee hit a fresh record low of 71.54 against the US dollar. Investors are speculating that RBI may raise the repo rate for the third consecutive time in October.

IT stocks made merry on rupee's fall
Shares of HCL Tech, Infosys, Tech Mahindra, TCS, Mindtree, Mphasis, Wipro and NIIT clocked decent gains amid a fresh fall in the rupee. Infosys and TCS touched fresh 52-week highs at Rs 748.35 and Rs 2,100, respectively, on BSE. Infosys made a fresh record on Tuesday after the scrip went ex-bonus in the ratio of 1:1. The board at its meeting on July 13 had recommended a bonus issue of one equity for every share held on the record date. The issue of bonus shares was to celebrate the 25th year of the company’s public listing in India.

TCS hits Rs 8 lakh crore m-cap
Tata Consultancy Services Tuesday became the second Indian company to attain Rs 8 lakh crore market capitalisation (m-cap). The IT major's m-cap stood at Rs 8,01,397 crore on BSE, dethroning Reliance Industries as country’s valued firm in terms of m-cap. Shares of the company closed the day at Rs 2,093.20, up by 1.86 per cent. Reliance Industries on August 23 became the first Indian company to cross the Rs 8 lakh crore market capitalisation mark. The m-cap of Reliance Industries stood at 7,87,357.93 crore on BSE.

Oil on the boil
Global crude oil prices saw an uptick on Tuesday on tight supply as oil rigs were evacuated from the Gulf of Mexico due to a hurricane warning. Oil prices rose sharply on Tuesday after the evacuation of two Gulf of Mexico oil platforms in preparation for a hurricane, Reuters reported. Benchmark Brent crude climbed by $1 per barrel. The oil market has been facing a shortage in supply after US imposed sanctions on Iran. Following this, shares of Indian oil marketing companies came under pressure and barring RIL, all stocks in the BSE Oil & Gas index plunged.

Midcaps & smallcaps crumbled
BSE Midcap and Smallcap indices suffered strong losses on Tuesday. The BSE Midcap index ended the day at 16,367, down 437 points or 2.60 per cent. The BSE Smallcap index suffered a loss of 349 points, or 2.04 per cent, to settle at 16,815.

Realty majors suffer after SC ban
Shares of DLF, Sunteck Realty, HDIL, Indiabulls Real Estate and Sobha fell up to 5.34 per cent. The realty stocks have been falling in the wake of a Supreme Court order that directed a ban of all construction activities in the states of Maharashtra, Madhya Pradesh, Uttarakhand and Union Territory of Chandigarh unless a solid waste management policy was in place.

52-week highs & lows
As many as 70 stocks, including IRB Infrastructure Developers, South Indian Bank, Supreme Petrochem, Tata Communications and Unitech, hit 52-week lows on NSE.

Meanewhile, 18 stocks, including Infosys, Electrosteel Steels, Albert David, Cantabil Retail India, GKW and Greaves Cotton, hit 52-week highs on NSE, defying the bearish market mood.
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