Sensex, Nifty log biggest drop in nearly six weeks

26/11/2014

Mumbai: In their biggest drop in nearly six weeks, benchmark Sensex on Tuesday tumbled 161 points to 28,338.05 and Nifty index fell 67 points to 8,463.10 from record highs due to profit-booking and worries over new norms on P-Notes.
Shares of Realty, FMCG, Power, Metal, Consumer Durables, Banking, Capital Goods and Auto fell on heavy selling.
The BSE Sensex resumed higher at 28,520.76 and firmed up to 28,541.22. The gains proved to be short-lived as it dropped immediately to 28,217.50 before finally ending at 28,338.05, a loss of 161.49 points or 0.57 percent. This was its biggest single-day loss since October 16 when it shed 350 points.
The Sensex had gained 466.69 points, or 1.66 percent, in the previous three trading sessions.
Similarly, the CNX 50-share Nifty moved down by 67.05 points, or 0.79 percent, to finish at 8,463.10 after hitting all-time high of 8,535.35 in the early trade.
Amid concerns about possible misuse of Offshore Derivative Instruments, or P-Notes, for money laundering and other such purposes, Sebi yesterday directed foreign investors to ensure compliance with all necessary norms before issuing such notes with immediate effect. This, some market analysts, said hurt sentiments today.
"Correction in markets could (also) be attributed to profit booking from retail investors and due to some stock specific news. Among day's major market moving events, ITC was down by more than 5 percent intraday after on reports government has accepted the recommendation of ban of loose cigarettes," said Hiren Dhakan, Associate Fund Manager, Bonanza Portfolio.
The market may remain volatile this week as traders said participants are rolling over positions in the futures & options (F&O) segment from November to December 2014 series.
Asian stocks ended mixed as key benchmark indices in Hong Kong and Taiwan fell by 0.07 percent to 0.21 percent while indices in China, Japan, Singapore and South Korea rose by 0.08 percent to 1.37 percent.
European markets were also trading higher after latest data showed Germany's GDP rose 0.1 per cent in third quarter. Key benchmark indices in Germany, France and UK rose by 0.11 percent to 0.73 percent.
"It seems lack of broader participation is raising doubts among the investors & traders and that in turn triggering profit taking with every rise. We believe the situation will improve post F&O expiry...," said Jayant Manglik, President-retail distribution, Religare Securities.
Fifteen scrips out of the 30-share Sensex pack ended higher while the remaining 15 closed lower.
Major index losers were ITC (4.99 percent), Tata Steel (2.56 percent), ICICI Bank (2.02 percent), NTPC (1.96 percent), L&T (1.93 percent), Tata Power (1.74 percent), Maruti (1.69 percent), Axis Bank (1.65 percent), Hero Motocorp (1.28 percent), SBI (1.15 percent), Tata Motors (1.11 percent) and Bajaj Auto (1.10 percent).
However, BHEL rose by 2.95 percent, HUL 1.97 percent, ONGC 1.34 percent, Dr Reddy's Lab 1.24 percent, Bharti Airtel 1.13 percent, Cipla 1.00 percent and HDFC 0.92 percent.
Among the S&P BSE sectoral indices, Realty fell by 3.35 percent, FMCG 2.53 percent, Power 1.62 percent, Consumer Durable 1.45 percent, Metal 1.38 percent, Bankex 1.33 percent, Capital Goods 1.08 percent and Auto 1.06 percent.
Small-cap and Mid-cap indices also dropped by 2.32 percent and 1.43 percent respectively due to heavy selling pressure from retail investors.
The total market breadth remained negative as 2,173 stocks ended with losses, 823 closed with gains while 90 ruled steady. The total turnover rose sharply to Rs 7,291.24 crore from Rs 3,411.18 crore yesterday.

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