Sensex plunges 348 pts to log worst weekly
The benchmark Sensex today frittered away early gains and tanked 348 points to log its worst weekly drop since December 2011
Mumbai: The benchmark Sensex today frittered away early gains and tanked 348 points to log its worst weekly drop since December 2011 on disappointment over Narendra Modi government’s maiden Budget and debt concerns in Portugal.
In straight four days of decline, the 30-share Sensex has shed a massive 1,075.73 points, or 4.12 per cent. Investor wealth worth over Rs 5 lakh crore has been eroded in this extended sell-off. For the week, the BSE barometer has slumped 937.71 points, or 3.61 per cent.
Realty, capital goods, power, metal, refinery and banking shares mainly dragged down the Sensex today.
IT shares, however, saw buying interest after Q1 results by Infosys. The firm reported a 21.6 per cent y-o-y growth in consolidated net profit for the quarter ended June 30.
Initially, the BSE index resumed better and touched a high of 25,548.33, showing a rise of over 175 points.
Fresh concerns over Eurozone debt resurfaced as reports said Portugal’s biggest listed bank, Banco Espirito Santo, missed debt payments. Coupled with Budget disappointment, the Sensex then succumbed to heavy selling and tumbled to a low of 24,978.33, before ending at over 1-month low of 25,024.35 — a fall of 348.40 points or 1.37 per cent over Thursday.
“Markets are disappointed on the fiscal consolidation front. Budget didn’t speak anything about rationalisation of subsidies which was widely expected by most market players,” said Rakesh Goyal, Sr. Vice President, Bonanza Portfolio.
The 50-issue CNX Nifty of the NSE today also moved in a wide range of 7,625.85 and 7,447.20 before settling at 7,459.60, a net fall of 108.15 points or 1.43 per cent.
“Adding to the negativity, weak rainfall in India during the ongoing monsoon season has raised concerns of a first drought in five years. There was also nervousness ahead of May IIP data and June CPI data, scheduled to be released later in the evening,” said Jayant Manglik, President-retail distribution, Religare Securities.
For the week, Nifty fell 292 points or 3.76 per cent — its worst weekly drop in 16 months (since March 2013).
Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 993.97 crore yesterday, as per SEBI data.
Asian stocks ended narrowly mixed in choppy movement amid renewed concerns over Europe’s debt problems.
Key benchmark indices in Hong Kong, Japan, South Korea and Taiwan dropped by 0.02 per cent to 0.72 per cent while indices in China and Singapore moved up by 0.42 per cent to 0.74 per cent.
European markets were trading higher. Key indices in France, Germany and the UK moved up by 0.28 per cent to 0.52 per cent.
Turning back to the local market, 21 scrips out of the 30-share sensex pack ended lower while nine others ended up.
Major Sensex losers were BHEL (8.10 per cent), Hindalco (5.59 per cent), SBI (4.96 per cent), L&T (4.89 per cent), Tata Steel (4.01 per cent), Tata Power (3.60 per cent), HDFC (3.17 per cent) and RIL (3.13 per cent). ICICI Bank (2.53 per cent), Gail India (2.39 per cent), Axis Bank (2.35 per cent), Coal India (2.34 per cent), ONGC (2 per cent), Tata Motors (1.62 per cent) , HDFC Bank (1.55 per cent), Maruti Suzuki (1.10 per cent), NTPC (1.03 per cent) and Bajaj Auto (1.00 per cent) also logged losses.
However, Sun Pharma firmed up by 2.28 per cent, followed by TCS 2.13 per cent, Dr Reddy’s Lab 2.20 per cent, HUL 1.42 per cent, Wipro 1.42 per cent, ITC 1.04 per cent and Infosys 1.00 per cent.
Among the S&P BSE sectoral indices, Realty fell by 5.16 per cent, followed by Capital Goods 4.75 per cent, Power 4.54 per cent, Metal 3.69 per cent, Oil&Gas 2.78 per cent and Bankex 2.68 per cent while IT rose by 1.42 per cent, Healthcare 1.09 per cent and Teck 1.42 per cent.
Mid-cap and Small-cap indices also dropped by 2.81 per cent and 3.31 per cent due to fresh selling from retail investors.
“Corporate earnings will drive the indices now given the budget is announced,” said Kiran Kumar Kavikondala, Director & CEO, WealthRays Securities.
Market breadth turned negative as 2,217 stocks ended with lower, 710 stocks finished with gains while 79 ruled steady. Total turnover dropped to Rs 3,763.19 crore from Rs 5,134.93 crore yesterday.