Sensex down 150 pts at 1-month low; Infosys rises 4.4 pc

Sensex down 150 pts at 1-month low; Infosys rises 4.4 pc

Falling for the second straight day, the BSE benchmark Sensex today dropped by almost 150 points to end at one-month low level of 19,610.48 as oil and power sector shares tripped on weak manufacturing output signals.

The 30-share Sensex resumed higher at 19,859.22, but declined immediately to 19,541.97 amid weak global cues.

With a HSBC survey showing that manufacturing sector output fell in the month of May -- first decline since March 2009 -- shares from oil&gas, power, consumer durables and capital goods saw selling pressure. Sensex ended the day at one-month low of 19,610.48, loss of 149.82 points or 0.76 per cent. This is its weakest closing since 19,575.64 on May 3.

The sentiment was also affected by a weak rupee which slumped to 11-month lows of 56.73 against the US dollar. Similarly, the NSE 50-share CNX Nifty dropped by 46.65 points, or per cent 0.78 per cent, at 5,939.30. MCX-SX flagship index, SX40, also ended 97 points, or 0.83 per cent, lower at 11,634.91 points.

However, Infosys jumped nearly 9 per cent on hopes that co-founder N R Narayana Murthy, who will be assuming the post of executive chairman, will propel back the IT major into high-growth trajectory. The stock closed 4.4 per cent up.

Among Sensex components, 20 stocks declined led by Reliance Industries, ICICI Bank, HDFC Bank, HDFC Ltd, Maruti Suzuki, Hero MotoCorp, Bajaj Auto and Sun Pharma.

"The sharp rise in dollar over last one month is actually what is putting pressure on equity markets. Further, the weak manufacturing PMI data too added pressure today," said Milan Bavishi, Head Research, Inventure Growth & Securities.

Auto stocks fell as auto companies reported weak sales for the month just gone by. Shares of two-wheeler makers declined as OMCs raised petrol rate, traders said.

A downtrend in the Asian region and lower opening in Europe further influenced the market sentiment, they added.

Sectorally, the Oil and Gas sector suffered the most by losing 1.34 per cent, followed by power index (0.99 per cent), Auto sector index (0.79 per cent).

Liked the story?

  • 0

    Happy
  • 0

    Amused
  • 0

    Sad
  • 0

    Frustrated
  • 0

    Angry