Sensex slips 170 points, Nifty ends below 7,500 ahead of ECB rate decision; BHEL top loser
The headline indices tanked even as Asian stocks edged up after New Zealand surprised markets with a rate cut, keeping investors primed for more stimulus from the ECB later in the day.
- Mar 10, 2016,
- Updated Mar 14, 2016 9:18 AM IST
Snapping the six-session long gaining spree, the S&P BSE Sensex settled the day 170 points lower, while broader CNX Nifty managed to end above its key 7,450-mark as investors booked profits, especially in blue chips such as Reliance Industries.
The headline indices tanked even as Asian stocks edged up after New Zealand surprised markets with a rate cut, keeping investors primed for more stimulus from the European Central Bank later in the day.
The 30-share index ended the day at 24,623, down 170.62 points, while broad-based 50-share index quoted 7,486, down 45.65 points at close.
Market breadth remained negative with 19 of the 30 Sensex components ending the day in red.
BHEL was the worst performing stock on Sensex and lost 3.1 per cent on media reports rating agency CRISIL has lowered the rating of the company's long-term bank facilities citing a constrained business risk profile.
The drop, in contrast with Asian peers, came after indices posted their best weekly gain since 2011 in the week ended March 4, boosted by a fiscally prudent budget announcement.
"In India, there is a positive feeling after the Budget, but there will always be an overhang of global volatility, which could be coming from Europe, the US or China," said Sadanand Shetty, senior fund manager at Taurus Mutual Fund, which has about $746 million in assets under management.
Investor sentiment has improved after the government stuck to its fiscal deficit target for the next financial year, raising hopes the central bank would soon cut key policy rates.
Mirroring the optimism, foreign investors net bought $1.11 billion worth of shares this month, but have been net sellers worth $1.77 billion for the year.
Metal stocks such as Vedanta, Jindal Steel and Power (JSPL), Tata Steel and Hindalco rose up to 5 per cent after the Union Cabinet cleared a proposal to amend the Mines and Minerals (Development and Regulation) (MMDR) Act.
Reliance Industries fell 2.87 per cent after gaining 3.5 per cent over the past two sessions, amid expectations it would declare a dividend at a board meeting on Thursday.
Software maker Infosys fell 2.76 per cent on reports four shareholders have put up for sale a block of shares to raise around $131 million.
Among Asian markets, Hong Kong's Hang Seng index ended with a downtick of 0.06 per cent, while China's Shanghai Composite lost 2.02 per cent. Japan's Nikkei bucked the trend to gain 1.26 per cent.
A lowdown on markets today
12:30 pm
Sensex at 24,522, down 271.05 points
Nifty at 7,460, down 71.25 points
11:00
Sensex at 24553.91, down 240 points
Nifty at 7465.75, down 66 points
10:10 am
Sensex at 24,617, down 176.79 points
Nifty at 7,485, down 46.45 points
09:25 am
Sensex at 24,740, down 53.91 points
Nifty at 7,524, down 7.50 points
(With inputs from Reuters)
Snapping the six-session long gaining spree, the S&P BSE Sensex settled the day 170 points lower, while broader CNX Nifty managed to end above its key 7,450-mark as investors booked profits, especially in blue chips such as Reliance Industries.
The headline indices tanked even as Asian stocks edged up after New Zealand surprised markets with a rate cut, keeping investors primed for more stimulus from the European Central Bank later in the day.
The 30-share index ended the day at 24,623, down 170.62 points, while broad-based 50-share index quoted 7,486, down 45.65 points at close.
Market breadth remained negative with 19 of the 30 Sensex components ending the day in red.
BHEL was the worst performing stock on Sensex and lost 3.1 per cent on media reports rating agency CRISIL has lowered the rating of the company's long-term bank facilities citing a constrained business risk profile.
The drop, in contrast with Asian peers, came after indices posted their best weekly gain since 2011 in the week ended March 4, boosted by a fiscally prudent budget announcement.
"In India, there is a positive feeling after the Budget, but there will always be an overhang of global volatility, which could be coming from Europe, the US or China," said Sadanand Shetty, senior fund manager at Taurus Mutual Fund, which has about $746 million in assets under management.
Investor sentiment has improved after the government stuck to its fiscal deficit target for the next financial year, raising hopes the central bank would soon cut key policy rates.
Mirroring the optimism, foreign investors net bought $1.11 billion worth of shares this month, but have been net sellers worth $1.77 billion for the year.
Metal stocks such as Vedanta, Jindal Steel and Power (JSPL), Tata Steel and Hindalco rose up to 5 per cent after the Union Cabinet cleared a proposal to amend the Mines and Minerals (Development and Regulation) (MMDR) Act.
Reliance Industries fell 2.87 per cent after gaining 3.5 per cent over the past two sessions, amid expectations it would declare a dividend at a board meeting on Thursday.
Software maker Infosys fell 2.76 per cent on reports four shareholders have put up for sale a block of shares to raise around $131 million.
Among Asian markets, Hong Kong's Hang Seng index ended with a downtick of 0.06 per cent, while China's Shanghai Composite lost 2.02 per cent. Japan's Nikkei bucked the trend to gain 1.26 per cent.
A lowdown on markets today
12:30 pm
Sensex at 24,522, down 271.05 points
Nifty at 7,460, down 71.25 points
11:00
Sensex at 24553.91, down 240 points
Nifty at 7465.75, down 66 points
10:10 am
Sensex at 24,617, down 176.79 points
Nifty at 7,485, down 46.45 points
09:25 am
Sensex at 24,740, down 53.91 points
Nifty at 7,524, down 7.50 points
(With inputs from Reuters)