MUMBAI, Feb 10 (Reuters): The BSE Sensex fell on Monday, snapping a
four-session winning streak, as wireless operators such as Idea Cellular
slumped after rising prices in a mobile spectrum auction set off
concerns about profit margins.
Blue chips were also hit after foreign investors sold a net $39.88 million worth of shares in the secondary market on Friday, extending their selling streak to a seventh day that brought the total outflows to $582.02 million.
Still, gains in defensive sectors such as pharma prevented a sharper fall, as caution was also seen ahead of consumer price inflation and industrial output data due on Wednesday and wholesale inflation data on Friday.
The CPI for January is seen at 9.3 per cent versus mean estimates of 9.4 per cent, Thomson Reuters smart estimates show.
Globally, shares made guarded gains, encouraged that Wall Street was able to weather a seemingly disappointing US jobs report, although caution also prevails ahead of Federal Reserve Chairwoman Janet Yellen's first testimony to the US House of Representatives on Tuesday.
"Shares may continue to remain rangebound. Inflation data may lead to a breakout or breakdown before the elections," said G Chokkalingam, founder of research and fund advisory company Equinomics.
The Sensex fell 0.21 per cent, or 42.29 points, to 20,334.27, after ending on Friday at its highest in one week.
The Nifty dropped 0.16 per cent, or 9.75 points, to 6,053.45.
Shares of telecom companies slumped as rising prices in the spectrum auction are seen reducing potential profit margins.
Idea Cellular slumped 8.44 per cent, its biggest single-day fall since October 23, 2008. Bharti Airtel fell 2.7 per cent, while Reliance Communications lost 4.2 per cent.
Among blue chips, Housing Development Finance Corp fell 2.3 per cent, while Tata Consultancy Services ended lower 2.4 per cent on continued risk aversion.
Banks were also under pressure with HDFC Bank lower 0.6 per cent and State Bank of India down 0.9 per cent.
Blue chips were also hit after foreign investors sold a net $39.88 million worth of shares in the secondary market on Friday, extending their selling streak to a seventh day that brought the total outflows to $582.02 million.
Still, gains in defensive sectors such as pharma prevented a sharper fall, as caution was also seen ahead of consumer price inflation and industrial output data due on Wednesday and wholesale inflation data on Friday.
The CPI for January is seen at 9.3 per cent versus mean estimates of 9.4 per cent, Thomson Reuters smart estimates show.
Globally, shares made guarded gains, encouraged that Wall Street was able to weather a seemingly disappointing US jobs report, although caution also prevails ahead of Federal Reserve Chairwoman Janet Yellen's first testimony to the US House of Representatives on Tuesday.
"Shares may continue to remain rangebound. Inflation data may lead to a breakout or breakdown before the elections," said G Chokkalingam, founder of research and fund advisory company Equinomics.
The Sensex fell 0.21 per cent, or 42.29 points, to 20,334.27, after ending on Friday at its highest in one week.
The Nifty dropped 0.16 per cent, or 9.75 points, to 6,053.45.
Shares of telecom companies slumped as rising prices in the spectrum auction are seen reducing potential profit margins.
Idea Cellular slumped 8.44 per cent, its biggest single-day fall since October 23, 2008. Bharti Airtel fell 2.7 per cent, while Reliance Communications lost 4.2 per cent.
Among blue chips, Housing Development Finance Corp fell 2.3 per cent, while Tata Consultancy Services ended lower 2.4 per cent on continued risk aversion.
Banks were also under pressure with HDFC Bank lower 0.6 per cent and State Bank of India down 0.9 per cent.
Blogger Comment
Facebook Comment