SENSEX FALLS 314 PTS; WEAK Q4 NOS DRAG NIFTY BELOW 8400

The market fell more than 1 percent on Monday, reacting to the disappointing March quarter earnings of ITC and SBI. The broader markets outperformed benchmarks marginally. The 30-share BSE Sensex fell 313.62 points to 27643.88 and the 50-share NSE Nifty closed below the 8400-mark, down 88.70 points to 8370.25. The BSE Midcap and Smallcap indices closed flat with negative bias.  FMCG, capital goods, banking & financials, healthcare, metals and select technology stocks saw selling pressure. ITC dropped 3.3 percent after posting a dismal set of earnings in the fourth quarter.  Shares of the steel conglomerate fell 2.5 percent. Tata Motors plunged 2 percent and BHEL declined 0.2 percent ahead of March quarter earnings on May 26.  Tata Motors to report 0.3 percent growth in Q4 profit and BHEL to register 57.5 percent decline in profit. Shares of HDFC, Infosys, L&T, Reliance Industries, State Bank of India, Axis Bank, Vedanta and HUL dropped 1-3 percent. However, ONGC bucked the trend, up 1.9 percent followed by Bharti Airtel with 1.25 percent gains and Wipro with 0.6 percent upside. Lupin gained 1 percent while Tata Power fell 1.2 percent on news that Lupin will replace Tata Power in the BSE Sensex 30 list with effect from June 22. Public sector lender Canara Bank was down 3.7 percent after its asset quality weakened in Q4. Profit grew by 0.3 percent while net interest income fell 1.9 percent. Asian markets outperformed Indian equities today. Shanghai surged 3.35 percent, closing at its highest level since 2008 after China Government announced a list of more than 1000 infra projects that it is inviting private investors to help fund and build.
In the FMCG space, ITC dipped over 3% to Rs 318 after the company reported a lower-than-expected results. Hindustan Unilever (HUL), Godrej Consumer Products and Gilette India shed about 1% each. L&T, BEML and ABB among the capital goods stocks closed about 1% lower each.
On the gainer's side, select public sector oil marketing companies had a good session due. ONGC zoomed more than 2%, while HPCL and BPCL gained about 1% each. Bharti Airtel and Wipro also gained 0.5-1% each.

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