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Global jitters drag Sensex 296 pts; Nifty closes below 7900

Oct 07, 2014, 04.37 PM IST | Source: Moneycontrol.com

Foreign institutional investors had been net sellers of shares to the tune of Rs 2,300 crore in previous six out of seven sessions (till October 1) while domestic institutional investors were net buyers to the tune of Rs 3,055 crore (as per provisional figures) during the same period.

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Global jitters drag Sensex 296 pts; Nifty closes below 7900

Foreign institutional investors had been net sellers of shares to the tune of Rs 2,300 crore in previous six out of seven sessions (till October 1) while domestic institutional investors were net buyers to the tune of Rs 3,055 crore (as per provisional figures) during the same period.

16:37

The News International Team

Global jitters drag Sensex 296 pts; Nifty closes below 7900

Equity benchmarks fell more than a percent to close near two-month low on Tuesday, continuing southward journey for the second trading session of the October month, weighed down by global jitters. Likely slowdown in China, Germany’s weak industrial output data and fears of US rate hike dampened sentiment across the globe. The market was opened for trade today after a long weekend (of five-day).

The 30-share BSE Sensex lost 296.02 points or 1.11 percent to 26271.97 and the 50-share NSE Nifty closed below the 7900 level, down 93.15 points or 1.17 percent to 7852.40 due to fall in capital goods, metals, healthcare, and banking and financials stocks.

According to Dipan Mehta, Member, BSE & NSE, an absence of action on major reforms from the government has been putting doubts in the market.

He says that technically, the markets appear to be weak and vulnerable at this point of time because all India-centric stocks, the banks, cement, capital goods—which are supposed to do well on the uptick of GDP growth rates — are just not participating in the bull run, and the defensives and export-oriented sectors can contribute only up to a level.

“Thus at this time it is best to be a bit of cautious and wait as this correction may deepen further over the next few trading sessions,” he adds.

The major fall in stocks like HDFC, TCS and L&T, and metals indicated that institutional investors may have offloaded their some exposure. Foreign institutional investors had been net sellers of shares to the tune of Rs 2,300 crore in previous six out of seven sessions (till October 1) while domestic institutional investors were net buyers to the tune of Rs 3,055 crore (as per provisional figures) during the same period.

Cameron Brandt, Director of Research, EPFR Global does not worried about current small outflow. “We are certainly seeing edging towards more of a risk-off mindset among investors but I don’t think it’s written in stone that they will stay away for the rest of the year,” he says.

“A fair amount of money is piling up in money market funds, I think the institutional investors will like to deploy that once they get some certainty about the number of key issues and fund managers continue to talk India up so there seems to be some appetite,” he adds.

More to come…

14:00

Sensex, Nifty fall 1%; metals, capital goods, banks drag

HDFC, Dr Reddy’s Labs, Sun Pharma, Hindalco Industries, Sesa Sterlite, DLF, Cairn India and Jindal Steel topped the selling list, down 3-6 percent.

Read More »

13:00

Nifty struggles at 7900; Tata Motors extends gainsRead More »

Commercial vehicle sales of Tata Motors went down 13 percent to 28,943 units and light commercial vehicle sales fell 24 percent year-on-year to 18,539 units while medium and heavy commercial vehicle sales rose 18 percent to 10,404 units.

Read More »

12:00

Sensex, Nifty weak; metals lose shine, Infosys most activeRead More »

Infosys was the most active stock on exchanges ahead of its second quarter earnings that will be announced on October 10, up 0.25 percent.

Read More »

11:00

Nifty breaks 7900; Infosys rebounds, Tata Motors risesRead More »

Other frontline stocks in focus include Tata Motors (up 1.5 percent) that saw buying despite weak September sales, Mahindra and Mahindra (down 2 percent) as Mahindra 2 wheelers bids to acquire 51 percent stake in Peugeot Motorcycles.

Read More »

10:00

Nifty holds 7900 amid pressure; Hindalco, HDFC, Cipla slipRead More »

Aluminium major Hindalco Industries topped the selling list, falling over 3 percent followed by HDFC and Cipla with 2-3 percent loss. ITC, HDFC Bank, Mahindra and Mahindra, Hero Motocorp, Gail India and BHEL lost 1-1.5 percent.

Read More »

09:15

Sensex, Nifty flat; Tata Motors, TCS, HCL Tech top gainersRead More »

Shares of ITC, HDFC Bank, HUL, Infosys, Dr Reddy’s Labs and UltraTech Cement lost 0.8-1.4 percent while TCS, BHEL, Coal India, ICICI Bank, NTPC, HCL Technologies and BPCL gained 0.7-2 percent.

Read More »

READ MORE ON  BSE Sensex, Nifty, Market, Dipan Mehta, Foreign institutional investors, Cameron Brandt, EPFR Global
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