Sensex snaps 6-day winning run; closes 306 points lower

Mumbai: Snapping six straight days of the rally, the Indian stock market's benchmark Sensex closed 306 points lower on Monday dragged by heavy selling pressure in Reliance Industries after the company announced lower-than-expected quarterly earnings.

The 30 stock S&P BSE Sensex ended the day at 55,766.22 points, which is 306.01 points or 0.55 per cent lower than its previous session's close at 56,072.23 points. Earlier, the Sensex started the day in the red at 55,877.50 points and slumped to a low of 55,537.08 points in the morning trade.

The Sensex closed in the red for the first time in the past seven trading sessions. The index had closed 390.28 points or 0.70 per cent higher on Friday, the previous trading session.

The broader Nifty 50 of the National Stock Exchange slumped to 16,631.00 points, which is 88.45 points or 0.53 per cent lower when compared with its previous session's close at 16,719.45 points.

The Nifty closed in the red after six consecutive sessions of gains. The Nifty 50 had gained 114.20 points or 0.69 per cent on Friday.

Reliance Industries Limited (RIL) closed 3.31 per cent lower at Rs 2420.15. The scrip slumped after announcing its quarterly results. Reliance Industries Limited on Friday reported a consolidated net profit of Rs 17,955 crore for the first quarter of the current financial year as compared to Rs 12,273 crore recorded in the corresponding period of the previous year, registering a year-on-year growth of 46.3 per cent.

RIL's revenue surged by 54.54 per cent year-on-year to Rs 2,23,113 crore during the quarter ended June 30, 2022, as compared to Rs 1,44,372 crore recorded in the corresponding period of the previous year. The company announced the result after the closing of trade on Friday.

The company's earnings have been impacted due to geopolitical conflict and tight crude markets.

Commenting on the results, Mukesh Ambani, Chairman and Managing Director, Reliance Industries Limited, said "Geopolitical conflict has caused significant dislocation in energy markets and disrupted traditional trade flows. This along with resurgent demand has resulted in tighter fuel markets and improved product margins. Despite significant challenges posed by the tight crude markets and higher energy and freight costs, O2C business has delivered its best performance ever."

Mahindra & Mahindra tumbled 3.80 per cent to Rs 1135.45. Maruti Suzuki fell 2.41 per cent to Rs 8613.30. Kotak Bank dipped 1.74 per cent to Rs 1794.65.
UltraTech Cement, Tech Mahindra, Nestle India, Bajaj Finserv, Dr Reddy's Laboratories and Power Grid Corporation were among the major Sensex losers.
Tata Steel surged 2.66 per cent to Rs 960.90. IndusInd Bank rose 1.99 per cent to Rs 961.55. Asian Paints, HCL Technologies, Wipro, NTPC, L&T, State Bank of India and HDFC were among the major Sensex gainers.