Sensex marks 2017 start with a 31-point loss

Source: The Hitavada      Date: 03 Jan 2017 09:29:49


Jan 2,


IN A listless trading Monday, the Sensex closed with a marginal loss of over 31 points at 26,595 on the first trading day of 2017 as banking stocks felt the heat due to worries that the lending rate cuts would hit their bottom line. Investors started taking profit that made the mood downbeat.

There was an accelerated selling after the manufacturing sector contracted in December, hit hard by demonetisation, and fresh weakness in the rupee.

Opening on a weak note, the Sensex shuttled between 26,720.98 and 26,447.06 and settled lower 31.01 points, or 0.12 per cent, at 26,595.45. The gauge had gained 415.78 points in the previous two straight sessions.
The 50-share Nifty edged down by 6.30 points, or 0.08 per cent, to close at 8,179.50. It shuttled between 8,212 and 8,133.80 intra-day. In the banking space, HDFC Ltd emerged as the top loser by falling 3.45 per cent, followed by SBI 2.46 per cent and ICICI Bank 1.37 per cent. Axis Bank shed 0.73 per cent and HDFC Bank 0.57 per cent. Other prominent names that lost were Infosys, GAIL, Cipla, Wipro, HUL, NTPC and TCS.

Most global stocks, including those in Asia and Europe, were closed today for the New Year. The near-absence of overseas cues meant investors scrambled for direction.
In contrast, investors created fresh positions in second-line stocks, with small-cap and mid-cap indices beating the Sensex with gains of 1.20 per cent and 0.83 per cent, respectively.

Bajaj Auto fell 1 per cent after a 22 per cent decline in total sales in Dec. But the largest car-maker Maruti Suzuki gained 2.69 pc even as it reported a 1 per cent decline in total sales for Dec 2016. M&M rose 3.42 pc while Tata Motors climbed 3.37 per cent.