Sensex surrenders 150 points

Realty and IT stocks witness all round selling pressure

All round selling pressure, especially in realty and IT stocks, pulled down the Bombay Stock Exchange benchmark index, Sensex, by 150 points on Wednesday amid distinctly weak global cues.

The dampened market sentiment took a further hit after the country's top telecom operator, Bharti Airtel, posted a 32 per cent decline in June quarter profit to Rs. 1,682 crore.

Analysts said that market sentiment was weak after the U.S. Federal Reserve said that the recovery was losing pace. Wall Street ended in the deep red in Tuesday's session. In addition, the Bank of England's gloomy outlook for the U.K. economy also depressed investor sentiment.

After a promising start, the markets came under selling pressure and the 30-share barometer of the BSE settled lower by 149.80 points at 18070.19, extending the losses for the second consecutive day. In the past two days, the Sensex has fallen by 217 points.

The National Stock Exchange's wide-based 50-share Nifty index dropped by 0.73 per cent to finish at 5420.60.

With fears of a slowdown in the U.S. economy coming to the fore again, domestic software exporters, who earn more than 50 per cent of their revenue from the U.S. and Europe, were one of the worst-hit stocks. Infosys lost 0.72 per cent to Rs. 2,810.80, Wipro 2 per cent to Rs. 418.15 and Tata Consultancy Services 0.64 per cent to Rs. 858.85.

Realty and banking stocks, which were the fancy of investors in the recent past, were the major losers today on emergence of profit-booking.

Analysts said these two sectors moved in tune with the broader market. They also said that metal stocks were under pressure amid worries of slower growth of the Chinese economy. Tata Steel plunged 3.26 per cent to Rs. 520.40, the most in the Sensex pack. Sterlite, another metal major, too lost 1.51 per cent to Rs. 172.30.

Reliance Industries continued its losing streak, falling by 0.38 per cent to Rs. 984.50.

“These days, global sentiments are deciding the direction of the local markets. The fall in domestic markets was in line with the weak overseas sentiment,” Networth Stock Broking Head of Institutional Business Prakash Diwan said.

However, the downtrend was cushioned by Tata Motors, which rose by Rs. 49.35, or over 5 per cent, to Rs. 1,006.65, extending gains for the sixth consecutive day.

Trading was more of a stock-specific nature, with the result that 24 stocks in the 30-BSE index components fell, while six ended with gains. — PTI

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