This Article is From Mar 11, 2013

Sensex snaps four-day rising streak; IT, autos fall

Sensex snaps four-day rising streak; IT, autos fall

The BSE Sensex and the Nifty snapped a four-session gaining streak on Monday as technology stocks fell on profit-booking, while automakers dropped after an industry body said car sales in India posted their biggest monthly slump in more than 12 years.

Stocks sensitive to interest rates also fell after Reserve Bank of India governor Duvvuri Subbarao on Friday rejected high inflation as the "new normal", sparking concerns the central bank would be more hawkish on interest rates.

Shares were also hurt after a global risk rally that had sparked gains last week stalled, as weak economic data from China and worries about Italy took the shine off strong US jobs data last week.

Investors are gearing up for January industrial output data due on Tuesday and February wholesale price inflation on Thursday, which will help set expectations ahead of the RBI policy review on March 19.

"IIP and WPI are important data points ahead of the RBI meet. After a strong rally last week the market is trying to search for direction, and will remain in this range," said Jagannadham Thunuguntla, head of research at SMC Investments and Advisors Limited.

The Sensex fell 0.19 per cent, or 37.02 points, to end at 19,646.21, after hitting its highest close since February 2 on Friday and gaining 4.26 per cent over the previous four sessions.

The Nifty fell 0.06 per cent, or 3.35 points, to end at 5,942.35.

Software services exporters fell on profit-booking after gaining last week on rupee depreciation and improving US economic outlook.

Tata Consultancy Services Ltd fell 1.1 per cent after gaining 5.4 per cent last week, while Infosys Ltd fell 0.8 per cent after rising 1.94 per cent.

Automakers fell after an industry body said on Monday that car sales in India slumped 25.7 per cent in February, the biggest fall in more than 12 years and the fourth consecutive monthly slide.

Tata Motors Ltd fell 0.7 per cent, while Maruti Suzuki India Ltd ended 0.8 per cent lower.

The RBI governor's comments on Friday hit rate-sensitive stocks, coming after some economists had argued that the apex bank should adjust its policies towards an acceptance of persistently higher inflation.

ICICI Bank fell 0.7 per cent, while HDFC Bank ended 0.3 per cent lower.

However, among stocks that gained, shares in Ranbaxy Laboratories rose 1.1 per cent after Nomura upgraded the stock to 'buy' from 'neutral' and raised its target price to Rs 475 from Rs 415.

Berger Paints rose 2.2 per cent after it said in a statement that it would buy architectural operations of Sherwin Williams Paints India for an undisclosed sum.

Copyright @ Thomson Reuters 2013