Indian equity benchmarks retreated quite sharply in the late trade on Friday, with falling over 1% on profit booking. Metal space played spoilsport today after the group of ministers (GoM) approved Draft Mines & Minerals Development & Regulation Bill (MMDR Bill).
The 30-share BSE Sensex shed 220.26 points. It slipped below the psychological 19,000-mark to close at 18,858.04. Heavyweights Reliance Industries, TCS and ICICI Bank led this fall.
Devangshu Datta, Consulting Editor of Outlook Profit said the market was looking anyway for an excuse to do some profit booking today. The Sensex had rallied 351 points on Thursday.
Jyotivardhan Jaipuria of BoAML expects the market to correct below the 18,000 level as weak results could drive more downgrades. "The Sensex EPS target of 1225 may be downgraded to below the 1200 levels," he said.
Even Michael Preiss of Standard Chartered Bank is still underweight on India and believes that money quantitative easing high oil prices has led to high input prices inflation and has negatively affected the Indian equity market.
The 50-share NSE Nifty fell 68.30 points or 1.19%, to settle at 5,660.65. However, Datta said the rally would still be on if it finds support anywhere above 5600.
For the week, Nifty and Sensex gained 0.5% each.
Metal stocks were extremely under selling pressure after MMDR bill suggests that coal mining companies will share 26% profit with locals. Respective Index fell 3%.
Sterlite Industries, SAIL, Hindalco, Sesa Goa and Hindustan Zinc were down 4% each. Coal India was the biggest loser in the back, with falling over 8%. Tata Steel and Jindal Steel slipped 2% each. Volume too was quite high.
Heavyweights Reliance Industries, TCS and ICICI Bank tumbled 2-2.7%. Morgan Stanley downgraded RIL to equal weight from overweight and removed stock from focus list.
ITC, HDFC, L&T and HCL Tech were down 1.4% each. HDFC fell despite results on expected lines.
IT bellwether Infosys is going to announce its fourth quarter FY12 results on Tuesday. The stock went down over half a percent.
However, ONGC, NTPC, Hero Honda, BPCL, Ranbaxy Labs and PNB were gainers. Siemens was the top gainer, with rising 2.5%. DLF went up 1.4%.
SKS Microfinance rallied another 20% today, especially after Finance Ministry released MFI Development & Regulation Bill yesterday.
Birla Pacific Medspa, which gained 150% yesterday on listing, plunged 20% on profit booking.
About 1153 shares advanced as against 1772 shares declined on the Bombay Stock Exchange. Total traded turnover was more than Rs 1.17 lakh crore today.
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