Stock indices, on Thursday, slumped following selling pressure on account of expiry of the derivatives contact for May and profit-booking in stocks that had surged in anticipation of the Modi government at the Centre.
The S&P BSE Sensex closed with a loss of 322 points at 24234.15 down 1.31 per cent and the NSE Nifty too closed with a loss of 94 points at 7235.65, down 1.28 per cent. Huge offloading of stocks was witnessed and it was so high that not a single BSE sectoral index ended in the positive territory. The BSE IT index led the list as shares of Infosys plunged nearly 8 per cent to close at Rs.2,921 a day after its president and board member B. G. Srinivas resigned.
“The disappointment continued on Dalal Street with markets correcting since the start of the week to close at the low point of the day. We believe now as the derivatives expiry is over, Nifty is likely to consolidate at current levels trading in a broad range of 7100-7400 levels for few days,” said Jayant Manglik, President-retail distribution, Religare Securities.
“With 7300 level being taken out by bears, there is more room for downside. For tomorrow (Friday) a flat trading range can be expected with markets reacting to GDP numbers,” said Kiran Kumar Kavikondala, Director & CEO, WealthRays Securities.
“The indices had surged 10 per cent ahead of the announcement of the election results and it is natural to book profit. Today (Thursday) was a roll over day and this was why the correction was high. Until new policies are announced and some result is seen on the ground, the indices will not bounce back. But I am confident that the market will go up,” said Kishor Ostwal, Chairman, CNI Research.
Rupee drops 10 paiseThe rupee on Thursday weakened by 10 paise, logging its fourth loss in five days, to end at 59.03 against the dollar following fresh demand for the U.S. currency from importers and capital outflows linked to fall in shares. On Wednesday, it had gained 11 paise after depreciating 57 paise in the previous three sessions.
