Sensex, Nifty fall for second day as banking, auto stocks slide; IndusInd, SBI, HDFC Bank among top losers

  • The 30-share BSE Sensex fell by 202.05 points or 0.49 percent to end at 41,257.74, with 22 of its constituents closing with losses

  • The broader NSE Nifty shed 61.20 points or 0.50 percent to settle at 12,113.50 as banking, auto, FMCG and energy counters retreated

  • IndusInd Bank was the top loser among Sensex stocks, dropping by 4.38 percent

Mumbai: Markets spiralled lower for the second straight day on Friday as banking shares slumped after the Supreme Court took a strong note of telcos not complying with its order to pay Rs 1.47 lakh crore in statutory dues.

The 30-share BSE Sensex fell by 202.05 points or 0.49 percent to end at 41,257.74, with 22 of its constituents closing with losses.

The broader NSE Nifty shed 61.20 points or 0.50 percent to settle at 12,113.50 as banking, auto, FMCG and energy counters retreated.

The Supreme Court on Friday directed the top echelons of telecom firms to explain why contempt action should not be taken against them for non-compliance of its order to pay adjusted gross revenue (AGR) dues of Rs 1.47 lakh crore to the telecom department.

The order raised concerns over banks' exposure to AGR-hit telcos, mainly Vodafone Idea which reported more than Rs 6,000 crore loss for the October-December quarter.

IndusInd Bank was the top loser in the Sensex pack, dropping 4.38 percent, followed by PowerGrid, SBI, Hero MotoCorp and NTPC.

On the other hand, Bharti Airtel was the top gainer, spurting 4.69 percent, with analysts saying the Indian telecom sector could turn into a duopoly.

Vodafone Idea, which is staring at statutory dues worth Rs 53,000 crore, plummeted 23.21 percent.

"Supreme Court ruling on telecom players instructing them to pay dues by March 17th will impact the asset quality of banks having decent exposure in the sector.

 Sensex, Nifty fall for second day as banking, auto stocks slide; IndusInd, SBI, HDFC Bank among top losers

Representational image. Reuters.

Banks stocks will be under pressure given high inflation and RBI being unlikely to cut rates in the near-term. Indian market is impacted due to fall in global market due to increase in coronavirus cases," said Vinod Nair, Head of Research at Geojit Financial Services.

Rate-sensitive auto stocks dropped as official data showed wholesale inflation rising to 3.1 percent in January, further reducing prospects of a rate cut by RBI.

Hero MotoCorp dropped by 2.24 percent, Mahindra & Mahindra by 1.91 percent and Maruti by 1.24 percent.

FMCG major ITC fell 1.98 percent and HUL by 1.20 percent following concerns over rising costs due to pick up in inflation.

HCL Tech rose 1.42 percent, ICICI Bank 0.9 percent, RIL 0.86 percent and Tech Mahindra by 0.72 percent, limiting the fall in the Sensex.

On a weekly basis, the Sensex climbed 115.89 points or 0.28 percent, while the Nifty gained 15.15 points or 0.12 percent.

Globally, Asian markets reeled under the coronavirus threat after a dramatic spurt in the number of deaths and new cases fuelled suspicion that China might be concealing the true scale of the epidemic.

Tokyo's Nikkei 225 index closed 0.59 percent lower, but Shanghai recovered from early losses to end up 0.38 percent.

London's FTSE 100 fell 0.42 percent in opening trade while the Paris CAC 40 index shed 0.19 percent.

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Updated Date: Feb 14, 2020 18:33:09 IST