Sensex eases from record highs; Reliance Communications hits life low
Indian shares eased after hitting record highs early on Monday as a string of weak quarterly results, including from Sun Pharmaceutical Industries Ltd (SUN.NS) and Reliance Communications Ltd (RLCM.NS), hit sentiment.
The broader NSE Nifty was 0.1 percent higher at 9,608.20 as of 0657 GMT after touching a record high of 9,622.30 earlier in the session.
The benchmark BSE Sensex inched up 0.2 percent at 31,104.93 after hitting an all-time high of 31,155.40.
“The market is consolidating after the rally. Some amount of sector rotation needs to happen,” said Amar Ambani, head of research at IIFL Wealth & Asset Management.
Healthcare stocks were the biggest drag on the index, after shares of Sun Pharmaceutical Industries Ltd fell as much as 13.2 percent to a near four-year low after the company on Friday reported a 14 percent fall in March-quarter profit.
The company said its U.S. sales may fall this year on lower drug prices.
Aurobindo Pharma Ltd (ARBN.NS) lost as much as 5.5 percent while Lupin Ltd (LUPN.NS) was down as much as 2.9 percent.
Meanwhile, mobile carrier Reliance Communications slumped as much as 23.5 percent to a record low of 19.70 rupees after posting its second straight quarterly loss over the weekend because of a price war in the sector.
The company had also delayed repayment of loans to more than 10 banks, according to an Economic Times report. Reliance declined to comment.
Meanwhile, construction company PSP Projects Ltd PSPP.NS lost as much as 9.5 percent on a weak debut.
Software services provider Tech Mahindra Ltd (TEML.NS) hit over 3-1/2 year low after posting a 33 percent fall in consolidated profit for the March-quarter, missing analysts’ estimate.
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