Indian shares ended lower on Thursday, a day ahead of a no-confidence motion against the government, dragged by financial stocks such as Kotak Mahindra Bank Ltd. The broader NSE index closed 0.21 percent lower at 10,957.10, while the benchmark BSE index was down 0.06 percent at 36,351.23. Kotak Mahindra Bank closed 3.7 percent lower after it reported a smaller-than-expected profit for the quarter ending June.
Aluminium producer Hindalco Industries Ltd, which slumped to a one-year low in the session, ended 7 percent weaker. On Friday, the parliament will debate a no-confidence motion tabled by opposition parties against the Prime Minister Narendra Modi's government on Wednesday, the first day of the monsoon session.
"The participation is sort of muted with individual portfolios not doing well. Only Nifty-based portfolios are protected ... frustrating investors," said Deepak Jasani, head of retail research at HDFC Securities. "They are disappointed their portfolio values do not seem to reflect Nifty's bullishness seen in recent times," Jasani said.
Nifty mid-cap 50 index fell as much as 1.8 percent and is down over 13 percent this year as of last close. Technicals suggest Nifty has strong support at 10,929 points where as 11,046 acts as a strong resistance. The BSE index, which hit a record high on Wednesday, has strong support at 36,278 and resistance at 36,692. Housing Development Finance Corp and Tata Consultancy Services, down nearly 1 percent each, were the top drags on the NSE index.
Mid-cap IT stock Mindtree Ltd lost 12.2 percent, its biggest intraday fall since September 2011. Larsen & Toubro Infotech Ltd and Hexaware Technologies Ltd were also trading lower. State-run lenders, however, gained with the Nifty index of PSU banks trading 1.6 percent higher. Bank of Baroda Ltd advanced 3.9 percent.
Comments
Comments are closed.