Sensex snaps 8-day rally, ends lower by 75 points on Greece woes

the benchmark BSE Sensex today slipped by 75 points to 27,729.67 as market sentiment took a hit in last half hour on news that the creditors have rejected Greece’s new proposal.
Profit-booking ahead of tomorrow’s futures and options (F&O) June contract expiry also weighed to some extent.
After trading in positive zone for most part of the day, the index plunged over 200 from a high of 27,948.24 at the fag-end tracking losses in European stocks.
“The news that the creditors rejected Greece’s new proposal for a deal took a toll on the market movements,” said Alex Mathews, Head Research at Geojit BNP Paribas Financial.
Greek Prime Minister Alexis Tsipras said some creditors haven’t accepted the country’s proposals for a deal.
“The insistence of certain institutions of not accepting parametric measures has never happened before—not in Ireland, nor in Portugal,” he wrote in a Twitter post.
The BSE Sensex after a positive start, hit a high of 27,948.24 on sustained buying largely in tune with above-normal progress in monsoon.
However, it slipped towards the close on negative global cues and touched day’s low of 27,647.29, before settling 74.70 points or 0.27 per cent down at 27,729.67.
In previous eight sessions, BSE barometer had zoomed by 1,433.39 points or 5.4 per cent as better-than-forecasted monsoon raised hopes of a rate cut by RBI.
The 50-share NSE Nifty after reclaiming the psychological 8,400-mark in early trade touched the session’s high of 8,421.35 succumbed to profit-booking and settled 20.70 points or 0.25 per cent lower at 8,360.85.
Meanwhile, foreign investors sold shares worth Rs 374.97 crore yesterday as per provisional data, while domestic institutional bought shares worth Rs 404.20 crore.
In overseas markets, European stocks were trading lower.
Key benchmark indices in France and Germany were lower in the range 0.05 to 0.30 per cent, while the UK’s FTSE index was up by 0.43 per cent.
Earlier in the day, Asian stocks ended higher. Key indices in China, Hong Kong, Japan, Taiwan, Singapore and South Korea firmed up between 0.21 and 2.48 per cent.
Back home, 24 scrips out of the 30-share Sensex pack ended lower.
Pramit Brahmbhatt, Veracity Group CEO said: “Indices traded higher initially, however, declined at the fag-end due to selling pressure as the news came that the Greece deal with the creditors did not materialised.”
Major losers were Hindalco (3.70 pc), Tata Steel (2.98 pc), M&M (2.27 pc), SBI (1.92 pc), NTPC (1.65 pc), Cipla (1.35 pc), Gail India (1.24 pc), Bharti Airtel (1.19 pc), and Tata Motors (0.89 pc).
However, BHEL rose by 4.06 per cent followed by HUL 2.40 per cent, Lupin 1.83 per cent, Sun Pharma 1.54 per cent, Wipro 1.34 per cent and ICICI Bank 1.13 per cent.
Among the BSE sectoral indices, metal dropped by 1.57 per cent followed by realty 0.93 per cent, oil&gas 0.90 per cent, auto 0.80 per cent, capital goods 0.57 per cent and teck by 0.53 per cent.
The market breadth turned negative as 1,496 stocks ended in the red, 1,222 closed in the green and 134 ruled steady. Total turnover rose to Rs 2,629.33 crore from Rs 2,485.27 crore yesterday.