Weakness in global stocks take shine off markets

Markets finished the session on a weak note owing to profit booking at higher and attractive valuations amid losses in the global peers.

The S&P BSE Sensex dropped 207 points to end at 25,230 and the Nifty50 shed 59 points to finish at 7,747.

Globally, European stocks took a hit with the major indices declining owing to weakness in mining and auto stocks as earnings from major banks including UBS and Commerzbank hurt the investor sentiments.

FTSE 100, DAX and CAC 40 dropped between 1%-2%.

Meanwhile, major Asian indices barring China’s Shanghai Composite closed lower amid dip in oil prices and strengthening of the US dollar. China’s Shanghai Composite ended higher by 1.8% while Hong Kong’s Hang Seng and Singapore’s Straits Times lost between 1%-2%. Japanese markets are closed today on account of a public holiday.

Back home, the combined output of eight crucial infrastructure sectors jumped to a 16-month high of 6.4 per cent in March due to a double-digit growth in refinery products, fertilisers, cement and electricity.

STOCK TRENDS

Shares of Tata Motors gained 1.5% after the company reported a 9.9% growth in sales at 39,763 units in April against 36,190 units during the same month last year.

On the flip side, Capital Goods major L&T climbed 1% after the combined output of eight crucial infrastructure sectors jumped to a 16-month high of 6.4% in March.

Meanwhile, the government has granted infrastructure status to the shipyard industry, a move that will help the sectoral players get long-term financing at cheaper rates. Tracking the development, Reliance Defence and Engineering and ABG Shipyard surged between 1%-2.5%.

Another notable gainer in today’s trade was Adani Ports up nearly 1.5% ahead of the quarter results due today.

Among the prominent losers, Coal India slipped over 2% after the company said its coal production for the month of April stood at 40.09 mt as compared to target of 44.48 mt.

Meanwhile drug maker Sun Pharma dropped over 1.5% after its subsidiary Taro Pharmaceutical ceased commercial sales for Keveyis which is used to treat periodic paralysis. Among its peers, Lupin, Cipla and Dr Reddys’ Lab dipped up to 2%.

Auto stocks which witnessed a spectacular rally on posting good sales figures declined in the late trades on account of profit booking. M&M, Maruti Suzuki and Bajaj Auto and Hero Motocorp shed up to 1%.

Defensive stocks took a hit on the back of an appreciating rupee on selling of the American currency by exporters amid foreign fund inflow. Infosys, TCS, Wipro, ITC and HUL lost between 1%-2%.

State Bank of India (SBI) slashed by five basis points its marginal cost of funds-based lending rate, the new benchmark to which the pricing of loans are linked. The stock ended with modest losses.