Market Wrap: Sensex falls 289 pts, Nifty ends below 11,850, Jet Airways slips over 10% : Podcast: Business Today
Business Today

Market Wrap: Sensex falls 289 pts, Nifty ends below 11,850, Jet Airways slips over 10%

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BusinessToday.In | June 14, 2019

Equity benchmark indices extended losses in the last hour of the trade to end in the red, after sources said that India will impose retaliatory tariffs on 29 US products.

Sensex ended down by 289.29 points at 38,452, while Nifty fell by 90.75 points to close at 11,823. Overall 26 out of the 30 stocks ended in the red on Sensex and 42 out of the 50 stocks were negative on Nifty.

On the sectoral front, all indices closed in the red. Media and Realty were the biggest losers and were down over 2%, while Bank, Auto and FMCG, declined over 1% each, at the closing bell.

Market breadth was in favour of the sellers, indicative by advance decline ratio that was low at 0.48 on BSE as out of the total 2903 shares that were traded, shares advanced were 912 while 1823 shares declined and 168 were unchanged. Similarly, on the NSE, the ratio was down at 0.37, with 1195 declining stocks against 447 advancing ones, with 93 unchanged stocks.

Today, Sensex opened 55 points up at 39,797 while Nifty started at 11,910 levels.

Top losers in today's trade included Jet Airways, Reliance Capital, Syngene International, Yes Bank, IndusInd Bank, Bharti Airtel, Zee Entertainment and Eicher Motors.

Shares of Bajaj Finance, Wipro, Titan and co., City Union Bank, PI Industries and Mannapuram Finance hit new 52-week high in today's trade. Stocks that hit 52-week low were Biocon, Oracle Finance Services, YES Bank, Emami, Glanmark Pharma and MRPL.

In major domestic news, investors were also on edge ahead of the release of wholesale price inflation (WPI) data in the early trading hours. Data released showed that WPI inflation for May month was at a 2 month low, at 2.45% compared to 3.07% for the April month and 4.78 % during the corresponding month of the previous year. The major fall in inflation has been due to falling prices of food articles, fuel and power items, says official data.

In another major event, India has decided to impose the long pending retaliatory tariffs on 29 US products after Washington withdrew duty-free benefits for Indian exporters last week. Although, the U.S. has warned that any retaliatory tariffs by India would not be "appropriate" under WTO rules.

According to experts, amid rising oil prices and continued uncertainty over trade talks between the US and China, market mood was negative globally. Asian markets like Hong Kong and China Index were subdued on Friday ahead of key Chinese data that could provide more clues on how heavily the U.S.-Sino trade war is weighing on the economy. Technology shares, on the other hand, pushed European stock markets lower. However, U.S. stocks rose on Thursday after two days of declines, with energy shares rebounding on the back of crude oil surge.

Oil rallied nearly 5% on Friday, after attacks on two oil tankers in the Gulf of Oman on Thursday, escalating tensions in the Middle East. The United States has blamed Iran for the attacks, while Tehran bluntly denied the allegation.

On the currency front, the rupee opened on a flat note and declined by 11 paise to 69.61 against the US dollar as rising crude oil price concerns weighed on the investor community. Forex traders said, rupee traded in a narrow range, pressured by strengthening of the American currency in the overseas market and weak opening in domestic equities.