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Sensex ends 88 points lower, Nifty50 tops 8,640; Sun Pharma down 2%

The US markets had seen a rally in overnight trade but that didn’t get rubbed off on the domestic market, which saw cautious trading throughout.

, ET Online|
Updated: Aug 16, 2016, 03.56 PM IST
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Sensex ends 88 points lower, Nifty50 tops 8,640
NEW DELHI: The domestic equity market had a hard day on Tuesday, mainly due to pain on the IT counter and a high wholesale price inflation (WPI) print.

The US markets had seen a rally in overnight trade but that didn’t get rubbed off on the domestic market, which saw cautious trading throughout.

As soon as the July WPI numbers were revealed, the equity benchmarks nosedived. WPI inflation climbed to a two-year high of 3.55 per cent in July and this was enough to trigger a fall in the market.

The S&P BSE Sensex swung some 256.45 points between gains and losses in intra-day trade but managed to make some recovery in the last one hour tracking strength in Dow futures. It settled at 28,064.61, down 87.79 points or 0.31 per cent. The Nifty50 lost its crucial level of 8,650 and closed at 8,642.55, down 29.60 points or 0.34 per cent.



However, the broader market bucked the negative trend as the BSE Midcap index gained 0.55 per cent and the Smallcap index cloased marginally lower at 0.01 per cent.

“The market traded in a broad range. I think the range is now between 8,550 and 8,720. Till the time we do not break either side of this band, it is going to be difficult to really trade the index,” said Kunal Bothra, Technical Analyst.

Sun Pharma (down 2.35 per cent) ended at the bottom of the 30-share Sensex, down xx per cent after it requested a US FDA re-inspection of the Halol facility. Tata Motors (down 1.62 per cent), TCS (down 1.50 per cent), HDFC (down 1.36 per cent), and Wipro (1.31 per cent) were the other Sensex losers.

Cipla topped the Sensex charts, with 7.14 per cent gain despite weak first quarter earnings due to a strong management commentary. Among other gainers were Adani Ports (up 6.12 per cent), State Bank of India (up 1.34 per cent), L&T (up 1.15 per cent) and ICICI Bank (up 1.12 per cent).

Among the prominent losers was Infosys, which tanked 1.16 per cent as Royal Bank of Scotland cancelled its contract due to which the company is likely to take a hit of $40 million.

Shares of Power Grid Corporation lost 0.20 per cent after the company reported a 32.9 per cent surge in first quarter profit to Rs 1,802 crore from Rs 1,356 crore on year-on-year basis.

Shares of InterGlobe Aviation advanced 3.56 per cent after an announcement that the stock will soon be included in the Nifty50 index.

MRPL shares ended 1.20 per cent higher after it announced plan to shut its secondary units during September-October for maintenance work.

Shares of Unitech plunged 16.91 per cent after the developer told the Supreme Court that it was not in a position to refund money to homebuyers, who had invested in its projects in the NCR region.

In the sectoral landscape, the BSE telecom index fell 1.62 per cent led by losses in Bharti Infratel and Reliance Communications.



The BSE IT index was the second biggest loser led by losses in Subex (down 3.23 per cent) and D-Link (India) (down 3.19 per cent).



Elsewhere in Asia, China’s Shanghai Composite closed 0.49 per cent lower, Japan’s Nikkei fell 1.62 per cent and Hong Kong’s Hang Seng index 0.09 per cent.

At the time of writing of this report, London’s FTSE100 was trading 0.05 per cent lower while Germany’s DAX was down 0.06 per cent but France’s CAC40 was up 0.02 per cent.

(Images: BSE)

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