Home / Business / Money / Sensex sinks 379 pts, Nifty manages to hold 7100; banks weigh

Sensex sinks 379 pts, Nifty manages to hold 7100; banks weigh


Moneycontrol Bureau

The market lost more than 1.5 percent on Tuesday after rallying in previous four consecutive sessions. Profit booking and global weakness caused selling pressure today.

The 30-share BSE Sensex fell 378.61 points or 1.59 percent to 23410.18, dragged by banks, FMCG and infra stocks. The 50-share NSE Nifty touched an intraday low of 7090.70, before closing at 7109.55, down 125 points or 1.73 percent.

Overall sentiment continues to remain weak, says Yogesh Radke of Edelweiss Securities, adding financials, which have been dragging the Nifty down, will continue to remain under pressure in the next series as well.

According to him, the February series will expire closer to 7,100 level while next series will depend on the Budget outcome.

Meanwhile, Tushar Pradhan of HSBC Global Asset Management says the market does not have high expectations from the Budget, adding redemption pressures continued in the emerging market ETFs.

The broader markets also caught in bear grip with the BSE Midcap and Smallcap indices falling 1.5 percent and 1.3 percent, respectively. Nearly three shares declined for every share advancing on the Bombay Stock Exchange.

Global markets were also under pressure with the Europe falling 0.2-0.7 percent (at 16 hours IST). Asian markets ended lower with the Shanghai down 0.8 percent. Crude oil prices also declined, given worries rising Iranian output would deepen a global oversupply. International benchmark Brent slipped 1.8 percent to USD 34.06 a barrel and US front-month West Texas Intermediate (WTI) crude futures were down 2.25 percent to USD 32.64 a barrel.

Back home, banks were major contributors to Sensex fall with the Bank Nifty down 2.6 percent. Major lenders State Bank of India, ICICI Bank, HDFC Bank and Axis Bank lost 2-4 percent.

Cigarette major ITC extended losses, down 1.8 percent on fears of rising excise duties on tobacco products in Union Budget. Hindustan Unilever erased some previous day’s gains, down 2.6 percent.

Maruti Suzuki also fell further, down 0.9 percent on production loss due to Haryana (Jat) stir. Kuldeep Janghu, General Secretary of Maruti Suzuki Udyog Kamgar Union says the company has faced total production loss of almost 10000 units at its Gurgaon and Manesar plant.

NTPC lost over 2 percent as the government will dilute 5 percent stake in the company through two-day offer for sale that opened today.

Punjab National Bank & Cairn India plunged 4 percent each and Vedanta slipped 1.7 percent after the National Stock Exchange decided to remove these stocks from Nifty 50. The exchange will add Aurobindo Pharma, Bharti Infratel, Eicher Motors and Tata Motors DVR in Nifty 50.

Among others, TCS, Lupin, M&M, Bajaj Auto, Coal India and Bharti Airtel were down 2-4 percent while ONGC was only gainer on Sensex.

Leave a Reply

Scroll To Top