An evening walk down Dalal Street | Global weakness drags Sensex 572 pts, all sectoral indices end in the red
Benchmark indices corrected sharply for the second consecutive session in line with global weakness on Thursday, ahead of a crucial OPEC meeting decision due later in the day. In intraday trade, the Sensex fell more than 600 points and the Nifty broke 10,600 levels.
Traders also remained cautious ahead of five states elections exit poll due on Friday evening and results on December 11.
The weakness might continue in coming sessions considering the spate of weak domestic data due (economic, tax collections, auto sales, NBFC liquidity crisis etc), experts said, adding the state elections results will be closely watched.
The 30-share BSE Sensex was down 572.28 points or 1.59 percent at 35,312.13 and the 50-share NSE Nifty fell 181.70 points or 1.69 percent to 10,601.20.
“GDP is not good, tax collection not good, liquidity problem continued in NBFCs, auto sales likely to be weak in December, so taking all these into consideration, there is a high possibility that the market may see 9,900 levels or March lows again in coming weeks,” AK Prabhakar of IDBI Capital told Moneycontrol.
Gaurav Dua, Head of Research, Sharekhan by BNP Paribas said any fall from hereon would always be a buying as ultimately market always focusses on macro and earnings in the long term.
All sectoral indices closed in the red with Auto, IT and Realty falling the most, down over 2 percent each. Bank, FMCG, Metal and Pharma slipped over a percent each.
The broader markets also caught in bear trap as Nifty Midcap and Smallcap indices plunged over 1.5 percent. About three shares declined for every share rising on the NSE.
Among Nifty50, 47 stocks ended in the red with Reliance Industries (down 2.73 percent), Infosys (down 1.89 percent) and HDFC (1.39 percent) contributing the most to this correction.
Indiabulls Housing Finance (down 5.54 percent), Maruti Suzuki (4.56 percent), Tech Mahindra (4.19 percent), Bajaj Finserv (3.98 percent) and Tata Motors (3.87 percent) were biggest losers.
Sun Pharma (up 1.74 percent) and JSW Steel (up 0.34 percent) were only gainers among Nifty50 stocks. Infact, Sun Pharma snapped its three-day losing streak.
The sharp fall in rupee ahead of OPEC meeting also dented market sentiment. The currency was down 40 paise to 70.87 against the US dollar at the time of publishing this article.
Global markets corrected sharply ahead of OPEC members decision due later in the day, and due to fresh flare-up of tensions between US and China. At the time of publishing this article, Brent crude futures, the international benchmark for oil prices, fell 3.56 percent to $ 59.37 a barrel and US oil futures slipped 3.82 percent to $ 50.87 a barrel.
Major Asian markets ended the day lower, tracking weakness on the Wall Street overnight. Japan’s Nikkei, China’s Shanghai Composite, South Korea’s Kospi and Hong Kong’s Hang Seng were down 1.5-2.5 percent.
Among European markets, France’s CAC, Germany’s DAX and Britain’s FTSE were down around 2.5 percent each.