Sensex loses steam; falls more than a percent
Posted on Aug 08 2014 | IANS
Mumbai, Aug 8 : A benchmark index of Indian equities markets closed Friday's trade 259.87 points or 1.02 percent down as metal, capital goods and bank stocks fell.
The 30-scrip S and P Sensex of the Bombay Stock Exchange (BSE), which opened at 25,406.87 points, closed at 25,329.14 points (provisional), down 259.87 points or 1.02 percent from its previous day's close at 25,589.01 points.
The Sensex touched a high of 25,406.87 points and a low of 25,232.82 intra-day.
"Markets have bottomed-out today and there is a bounce-back expected in the next session. All the positive factors remain high, there is a Modi wave, inflation is expected to be low and SLR cut is a positive move... all these will lead to a bounce-back in the market," Kishor P. Ostwal, chairman and managing director, CNI Research told IANS.
Other analysts said weakness in the global markets due to geopolitical tensions led to the fall.
"The US authorising targeted airstrikes on Iraq was the latest trigger. There already was growing unease over the crisis in Ukraine. Indian markets were not insulated from the sell-off in global markets as it signed off the week in the negative zone," said Sanjeev Zarbade, vice president- private client group research, Kotak Securities.
"Capital goods, metals and realty stocks sold off. Going ahead, geopolitical tensions would continue to be in limelight, we believe. Investors are advised to utilize the opportunity to buy into quality stocks with strong management pedigree."
This is the second consecutive fall of the Sensex in the previous trading session on the back of negative global cues and caution in the interest rate sensitive sectors.
The wider 50-scrip Nifty of the National Stock Exchange (NSE) also closed in the red. It was down 80.70 points or 1.06 percent at 7,568.55 points.
Heavy selling was observed in metal, capital goods, bank, automobile, oil and gas stocks. However, healthy buying was seen in fast moving consumer goods (FMCG) and healthcare scrip.
In Friday' trade, the S and P BSE metal index was down 406.74 points followed by capital goods index which was lower by 362.57 points, bank index lost 258.61 points, automobile index fell 214.69 points and oil and gas index moved down 161.61 points.
However, the S and P BSE FMCG index gained 6.67 points and healthcare index was up 6.29 points.
The major Sensex gainers were: Bharti Airtel, up 2.09 percent at Rs.373.70; DrReddys, up 0.89 percent at Rs.2,780.55; ITC, up 0.72 percent at Rs.348.45; Cipla, up 0.32 percent at Rs.436.50; and Tata Consultancy Service (TCS), up 0.23 percent at Rs.2,476.
The losers were: Sesa Sterlite, down 5.71 percent at Rs.268.50; Tata Power, down 3.79 percent at Rs.91.45; BHEL, down 3.74 percent at Rs.221.60; Tata Steel, down 3.22 percent at 537.55; and Gail India, down 2.85 percent at Rs.406.90.
Among the Asian markets, Japan's Nikkei lost 2.98 percent, Hong Kong's Heng Seng was 0.23 percent points lower. However, China's Shanghai Composite Index, gained 0.31 percent.
In Europe, London's FTSE 100 was down 0.36 percent, Germany's DAX Index lost 0.17 percent and France's CAC 40 was 0.03 percent lower.