Benchmark indices on Saturday gave up their initial gains to settle in the red over weak quarterly results from Hindustan Unilever Ltd (HUL) and profit booking in IT stocks. Index heavyweight Reliance also contributed to the fall as its numbers failed to impress the Street.
While the Sensex made a good beginning at 72008.30 and advanced to a day’s high of 72026.26, marking a rise of 343 points, it surrendered most of the gains. Shares of HUL tanked 3.72 per cent and it was the top loser in the 30-share pack as some of the brokerages either cut its target price or trimmed the EPS estimates.
Market circles added that investors also resorted to profit booking in IT counters and lower participation on a Saturday also contributed to the fall.
Though RIL posted numbers that beat brokerage estimates, the Street was indifferent and the stock dipped 0.80 per cent to end at Rs 2713.20 on the BSE. Brokerages were, however, positive on the road ahead for RIL pointing out that the large capex is now behind the company and free cash flow should improve going forward.
While 24 stocks in the Sensex ended with losses, the index fell by 259.58 points, or 0.36 per cent, to settle at 71423.65. On the NSE, the Nifty declined 50.60 points or 0.23 per cent, to 21571.80. Among the Sensex firms, Kotak Bank, PowerGrid, ICICI Bank, HDFC Bank, PowerGrid were the major gainers.
