Nifty at near two-week closing low

FE Team | Published: July 10, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

MUMBAI, July 9 (Reuters): The Nifty closed at its lowest level in nearly two weeks on Wednesday, continuing to retreat from the record high hit in the previous session, as investors pared positions in blue-chips such as Tata Motors ahead of the budget.
Risk aversion was also seen ahead of Infosys Ltd kicking off the April-June earnings season on Friday, while weak global stocks on the back of data showing cooling Chinese inflation also dented sentiment.
The Economic Survey, unveiled on Wednesday, called for tough measures to shore up public finances and reduce inflation, reinforcing hopes that Prime Minister Narendra Modi and Finance Minister Arun Jaitley will deliver a non-populist, prudent budget on Thursday.
But some analysts also warn that investors may be expecting too much out of the budget and worry markets could be hit at any hint of disappointment.
"Markets may remain range-bound for the near term as valuations are looking expensive for the short term. Budget will be positive but would be more of a roadmap for the next few years," said Aneesh Srivastava, chief investment officer at IDBI Federal Life Insurance.
The broader Nifty notched up a second consecutive session of losses, ending down 0.5 per cent, or 38.20 points, at 7,585.
That marked its lowest close since June 27, pushing it to below its 20-day moving average.
The Sensex fell 0.54 per cent, or 137.30 points, to end at 25,444.81, its lowest close since June 30.
Tata Motors fell 2.7 per cent while Larsen & Toubro lost 1.3 per cent.
Among other blue-chips, Coal India fell 3.1 per cent while Housing Development Finance Corp ended down 0.7 per cent.
Auto stocks also fell after an industry body official said the delayed monsoon was worrisome and that car and utility vehicle sales were expected to grow moderately in FY15.
Mahindra and Mahindra fell 3 per cent while Maruti Suzuki India lost 2.8 per cent.
Software stocks also fell on caution ahead of Infosys' quarterly results on Friday. Infosys fell 1 per cent while Tata Consultancy Services ended down 2.1 per cent.
Cairn India Ltd shares fell 1.1 per cent after going ex-dividend on Wednesday, exchange data showed.
IndusInd Bank Ltd fell 1.3 per cent after the lender said its June-quarter net profit rose by 26 per cent to 4.21 billion rupees, in line with some analysts estimates.
However, among gainers, Multi Commodity Exchange of India Ltd rose 1.3 per cent after billionaire investor Rakesh Jhunjhunwala bought a 2-per cent stake in the company via a bulk deal on Tuesday, according to exchange data.
State-run oil refiners rose on hopes of lower subsidy burden as crude oil prices hit a one-month low in the international markets, traders said.
Hindustan Petroleum Corp rose 3.1 per cent, Indian Oil Corp rose 2.9 per cent, while Bharat Petroleum Corp gained 2 per cent.