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Fearful Friday: Post Market Review Sensex ends 493 points lower

The Indian markets witnessed deep cuts in today’s trade on account of relentless sell-off and concerns of rate hike, with the Sensex shutting 493 points lower
Indian indices

Indian markets witnessed a drastic fall with metal, consumer durables and auto stocks being primary victims. Markets remained under pressure all through the day, with relentless sell-off in all the sectors. 

The culprits of this massacre were the fears of another interest rate hike from the central bank, while negative global cues and heavy selling in index heavyweights just added to the pressure. The Sensex closed below its 20000 mark. During the day, the Nifty fell below 5900 levels but got back just above that level at the close.

The Sensex opened lower by 21 points at 20164 and quickly turned positive to hit the day’s high of 20211. The Sensex was unable to hold gains and slipped in the negative terrain in early trade. The index remained in the red throughout the morning session owing to constant selling pressure. The Sensex witnessed deep cuts in the afternoon session tracking weak European markets. Extending its losses, the Sensex hit the day’s low of 19629 in the late trade on the back of intense selling pressure across all sectors.

Only one share i.e. IDFC advanced as against 49 shares declined on the NSE. Major heavyweights on the bears' radar were - Reliance Industries, Infosys Technologies, Bharti Airtel, Tata Consultancy Services, ONGC, HDFC, ITC and HDFC Bank.

Among frontliners, Hindalco Industries, Tata Motors, Mahindra & Mahindra, Bharti Airtel and Suzlon Energy were down 3-6%. In Midcap space, UTV Software, Shree Global, KEC International, Rajesh Exports and Apollo Hospital rallied by 1.7-3.7% while Ruchi Soya, Polaris, M&M Financial, IndusInd Bank and Shiv Vani Oil lost by 6-7%.

The Sensex tanked 493 points to close at 19692 and the Nifty slipped 144 points to shut at 5905.

Viewing volumes
Industrial finance company - IFCI was traded the most, with over 0.62 crore shares changing hands on the BSE, followed by wind turbine major - Suzlon Energy (0.52 crore shares), India’s second largest developer - Unitech (0.25 crore shares), Mumbai-based real estate developer - Housing Development & Infrastructure (0.21 crore shares) and Anil Dhirubhai Ambani Group telecom firm - Reliance Communications (0.19 crore shares).

Sectoral & stock screening

All in red was on the sectoral indices front. BSE Metal was the worst performer, fell by 4.03%, followed by BSE Auto down by 3.26% and BSE Consumer Durables (CD) declined by 3.18%. Rest of the sectors closed lower in the range of 1.38-2.89%.

All the 30 Sensex stocks ended the session in the negative territory. Hindalco Industries lost the most by 7.02%, Tata Motors slipped by 5.52% and Bharti Airtel dropped by 4.12%.

Global signals

European share prices slipped back after scaling to 28-month highs in the previous session, with investors avoiding strong bets ahead of a key US jobs report that is expected to set the market's near-term direction.

The major Asian markets ended the session mixed. Indices like Shanghai Composite, Nikkei and Kospi ended in green, while Hang Seng, Jakarta Composite and Straits Times ended in red.

The US stock futures indicate lower opening on the Wall Street as caution prevailed ahead of the release of US non-farm payroll figures.