Sensex extends losses; Reliance Industries, Asian Paints slip
The benchmark Sensex on Thursday remained under pressure, falling more than 336 points, led by Reliance Industries and Asian Paints as investors grappled with concerns over hyper valuations and disappointing results.
Over the past three sessions, the gauge has taken a hit of around 793 points and during intra-day trade on Thursday, it fell to a low of 60485.65 points — a drop of around 1230 points from the levels prevailing on Tuesday.
Market circles feel that had it not been for some buying in financial stocks, the index would have settled deep in the red as well.
While the markets have been cruising at record levels till early this week, results from Hindustan Unilever Ltd (HUL), which reflected the adverse impact of elevated commodity prices, have impacted sentiment.
On Thursday, Asian Paints reported disappointing numbers because of high raw material prices. It posted a 28 per cent fall in consolidated net profits to Rs 596 crore for the quarter ended September 30, 2021, thus missing Street estimates.
“Steep inflation seen in raw material prices since the beginning of this calendar year has been phenomenal and has impacted gross margins across all businesses in the quarter,’’ Amit Syngle, managing director & CEO of Asian Paints said while commenting on the results.
On the BSE, shares of Asian Paints fell 5.21 per cent to Rs 3003.50 and it led the losers list in the Sensex. It was followed by RIL, which settled 2.85 per cent lower at Rs 2,623.
The stock has also come under pressure recently due to apprehensions of expensive valuations. RIL will declare results on Friday.