Economic woes again hit the stock indices as the BSE’s Sensex and NSE’s Nifty closed down by more than one per cent on Thursday.
The BSE 30-share Sensitive Index (Sensex) dipped by 245.80 points or 1.16 per cent to close at 20925.61. Automobile stocks lost the most with 2.2 per cent decline followed by banks (1.42 per cent), metal (1.37 per cent), oil & gas (1.30 per cent) and capital goods (1.02 per cent).
The mid cap stocks and small cap stocks also lost with 0.21 per cent and 0.32 per cent respectively.
Among the broader indices BSE 100 was down by 1.05 per cent. While BSE 200 lost 0.96 per cent, BSE 500 was down by 0.91 per cent.
On the National Stock Exchange (NSE) the 50-share Nifty closed at 6237.05 with a loss of 70.85 points or 1.12 per cent.
Stock prices registered a drop for the third consecutive trading session. “Nifty creating a new high on Monday appears to be a distant memory as indices continue to struggle on heightened expectations that the Fed may act sooner than later to unwind its stimulus after a provisional budget deal in Washington eased some of the fiscal drag on the U.S. economy,” said Amar Ambani, Head of Research, IIFL.
Weakness across the global markets weighed heavily on Dalal Street. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.6 per cent. On one hand there are expectations that the Fed may act to unwind its stimulus measures while on the other the belief is it will happen after the new Fed chief takes charge.
Back home, said Mr. Ambani, Indices appeared to be edgy ahead of the announcement of the October IIP data and November CPI data.
Dipak Acharya, Fund Manager, Equity, Baroda Pioneer AMC, however said that recently, Indian equity market touched all time high and undertone is quite positive. “Globally, there is lot of optimism around equities. Economic conditions of world are improving. At domestic level, CAD is improving, rupee is stabilising and GDP growth seems to have bottomed out.”
Rupee falls 58 paise Sustained dollar demand from importers led the rupee to its biggest fall in a month on Thursday, closing 58 paise lower at 61.83 against the U.S. dollar.
