Sensex (-514),Nifty (-169) pts lower on weak global sentiments

Nifty ends 5% lower on weak global sentiments

Weakness in global markets and lack of investor confidence saw the Indian stock market benchmarks wipe off gains made in last two trading sessions on Wednesday. Markets opened sharply lower, in line with the Asian peers, on concerns of global economic slowdown. Losses widened as the session progressed and indices spiralled lower. There was dearth of buyers and investors chose to remain on sidelines. Expectations of further cooling in inflation rate failed to cheer the market. Inflation rate for the week ended Oct 11 is seen at 11.35 per cent, lower from 11.44 per cent previous week. “All the major global markets were down and we followed suit. There was hardly any buying in today’s trade and foreign investors as well as domestic funds were seen on sell side. There is still some pain left, as market has not yet seen the bottom,” said Sarfaraz Vakil, associate vice president, India Infoline.

Bombay Stock Exchange’s Sensex ended at 10,169.90, down 513.49 points or 4.81 per cent from Tuesday’s close. The index touched a low of 10,128.22 and high of 10,484.85. National Stock Exchange’s Nifty closed at 3065.15, down 5.25 per cent or 169.75 points. The broader index touched a low of 3051.80 and a high of 3235.75.

BSE Midcap Index closed 2.7 per cent lower and BSE Smallcap Index declined 2.02 per cent. Among frontline stocks, Tata Steel (-12.04%), Sterlite Industries (-10.04%), Reliance Communications (-8.79%), ICICI Bank (10.04%), Jaiprakash Associates (-7.88%) and Tata Motors (-7.87%) were the worst hit. ITC (1.04%) and Hindustan Unilever (0.5%) were the only gainers in the 30-share index. Market breadth remained weak through the day, with 1,733 declines and 778 advances on BSE. “Market is lacking confidence and sentiment is extremely bearish at the moment. No one wants to be caught on the wrong foot,” added Vakil. Amongst the sectoral indices, BSE Metal Index fell 7.90 per cent as global commodities prices were headed downwards. Realty stocks were hammered despite reports that banks were planning to cut home loan rates by about 50 basis points after RBI cut the repo rate on Monday. BSE Realty Index closed 7.57 per cent lower. The flooding of banking system with liquidity didn’t prevent banking stocks from falling. BSE Bankex closed 5.78 per cent lower on bearish sentiments. Traders took positions in defensive stocks, which saw the BSE FMCG Index end 0.62 per cent higher.
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Nifty Oct futures in discount, Tata Steel slumps 14%
Equities end sharply lower; Sensex down 500 pts
Selling pressure intensifies; Nifty down 5%
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Source:ET etc