Sensex tanks 600 points intra-day

June 29, 2015 11:43 pm | Updated June 30, 2015 12:08 am IST - MUMBAI:

Concerns over Greece debt crisis triggering contagion effect on other countries like Portugal, Spain and Italy, thrashed the hopes of the recovering stock markets as the benchmark Sensex dipped more than 600 points in the intra-day on Monday.

The rupee, however, lost 20 paise at 63.84 per U.S. dollar compared to the previous close

The BSE 30-share Sensitive Index (Sensex) dipped by 602.65 in the intra-day before closing with a loss of 166.69 points or 0.60 per cent at 27645.15.

The broader indices too dipped as BSE 100 was down by 0.82 per cent and BSE 200 lost 0.86 per cent. While mid-cap stocks closed sharply down by 1.37 per cent, the small-cap lost 1.49 per cent.

On the National Stock Exchange (NSE), the 50-share Nifty was down by 62.70 points or 0.75 per cent to close at 8318.40.

“Greece’s decision to hold a referendum on July 5 has increased the odds of it exiting the Euro zone, said. Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services Ltd.

Mr. Nair said the Indian market had shown strong resilience by recovering well from the day’s low. Global investors would be at a risk-off mode by the time final outcome of the Greece referendum would be understood.

“Compulsions and common interest of Greece and European Union will ensure that there will be many swings in the saga keeping the safe heaven like German and Swiss Bonds in demand, Euro under pressure and global equity markets volatile,” said Nilesh Shah, Managing Director at Kotak Mutual Fund on the Greece situation.

However, Mr. Shah pointed out that Indian markets would witness little lower volatility than peers as “we are least impacted from the unfolding events in Greece and European Union.”

He said that certain stocks in IT, pharmaceuticals and auto ancillaries having significant exposure to Euro would under-perform the market. Since the Greece debt crisis issue was known for some time, it was unlikely to cause as much correction as the 2008 global financial crisis, he added.

Mr. Shah also said that equity markets while correcting in line with peers on Monday would be more impacted by “how monsoon behaves in July, and how monsoon session of Parliament is able to legislate bills such as GST and Land Acquisition and how June 2015 quarterly results pan out.”

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