Mumbai, November 22
Concern over the impact of demonetisation and foreign fund outflows proved heavy for markets with Sensex tumbling over 385 points to hit a fresh six-month low of 25,765.14 and Nifty plunging below the key 8,000-mark on across-the-board sell off .
Once again anxiety gained upper-hand following continued selling by foreign funds amid fresh worries of US monetary policy in view of last week’s hints by Federal Reserve Chair Janet Yellen on potential rate hike next month and anticipation that President-elect Donald Trump will resort to protectionism and fiscal expansion.
While domestic cash crunch following demonetisation drive to curb black money played its part, the rupee volatility — which slid from initial gains — sparked intense selling pressure.
Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services Ltd, said, “The cash crunch situation continued to spook sentiment and foreign fund outflows intensified the blow. Bank stocks which were outperforming till date in expectation of benefiting from demonetisation due to sharp increase in deposits have started to lose trend due to increased concern over liquidity issue and effective leveraging of funds.” The Sensex resumed higher at 26,246.70 for a brief while, it hovered in a range of 26,270.28 and 25,717.93 before ending at fresh six months low at 25,765.14, showing a loss of 385.10 points or 1.47 per cent. It last settled at 25,881.17 on May 25. The 30-share pack has dropped by 1,752.54 points or 6.37 per cent in last six days.
The NSE 50-share Nifty dipped by 145 points, or 1.80 per cent, it also ended at a fresh six-month low of 7,929.10.
Across the spectrum selling pressure witnessed led by realty, metal, auto, PSUs, industrials, finance, capital goods, bankex, financials, power, oil&gas, teck, FMCG, consumer durables and IT, while secondline shares of midcap and smallcap also dropped on intense selling pressure.
Meanwhile, foreign funds sold shares worth a net Rs 926.32 crore on last Friday as per the provisional figures issued by stock exchanges. In overseas markets, Asian stocks witnessed a mixed trend. Key indices in China, Hong Kong, Japan and Taiwan firmed up by 0.06 per cent to 0.79 per cent while indices in Singapore and South Korea dropped by 0.43 per cent to 0.77 per cent.
European markets were trading lower in their afternoon trade even as steep gains in oil and metal prices boosted shares of energy and mining companies, indices in France, Germany and UK dropped by 0.21 per cent to 0.50 per cent. In the domestic market, 25 stocks out of the 30-share Sensex pack ended lower while remaining 5 stocks closed higher.
Major losers were SBI (6.51 pct), PowerGrid (3.57 pct), Tata Steel (3.52 pct), Maruti (3.46 pct), M&M 3.16 pct, Tata Motors (2.99 pct), Dr Reddy’s Lab (2.40 pct), NTPC (2.33 pct), Adani Ports (2.17 pct), HDFC (2.05 pct), Coal India (1.87 pct), Gail India (1.68 pct), Axis Bank (1.61 pct), ITC (1.56 pct), Larsen (1.51 pct) and Bajaj Auto (1.50 pct). `
However, Wipro rose 1.04 pct, TCS 0.44 pct, Sun Pharma 0.36 pct and Reliance Ind 0.34 pct.
Among the major indices, S&P BSE Realty dropped by 4.71 pct followed by Metal 3.34 pct, Auto 3.25 pct, Bankex 2.89 pct, Industrials 2.84 pct, FMCG 2.84 pct and Finance 2.83 pct.
The market breadth turned negative as 2,223 stocks ended lower, 408 finished in green while 147 ruled steady.
The total turnover on BSE rose to Rs 2,548.58 crs from Rs 2,412.00 crore on last Friday.
Mumbai, November 22