In a roller-coaster ride, the BSE
benchmark Sensex on Thursday surrendered nearly 200-point gain
to end over 91 points down at four-month low levels on
emergence of fag-end selling triggered by weak European
markets amid continuing worries over the country's political
The Bombay Stock Exchange (BSE) 30-share barometer resumed better on firm Asian trends after announcement of improvement in China's manufacturing data and US Fed indicated a return to moderate economic growth. It then hit intra-day high of 19,082.29.
However, the pull-back proved to be short-lived as offloading after mid-session on weak European markets pushed the Sensex down by 91.32 points or 0.48 per cent to end at 18,792.87, a level not seen since November 26, 2012 when it had closed at 18,537.01. Thursday is the fifth day of losses for Sensex and the index has lost over 777 points in this phase.
The National Stock Exchange (NSE) 50-issue CNX Nifty on Thursday lost 35.65 points or 0.63 per cent to end at four-month low of 5,658.75.
Shares from realty, power, capital goods, PSU, refinery and metal segments continued their southward march.
Fall in Sensex-based stocks like HDFC Bank, L&T, Tata Motors, RIL, ITC, Bajaj Auto, HUL, Tata Power, Tata Steel, ONGC and Maruti Suzuki mainly contributed to the fall.
Brokers said trading sentiment turned bearish ever since Dravida Munnetra Kazhagam (DMK) withdrew its support to the ruling UPA government, raising concerns that economic reforms pace might get derailed.
Central Bureau of Investigation (CBI) on Thursday carried out raids at the residence of DMK chief M Karunanidhi's son M K Stalin, two days after the party pulled out of UPA. "Concern over economic and political health of the country has revived worries and selling is seen on rallies," said Nidhi Saraswat, Senior Research Analyst, Bonanza Portfolio Limited.
While Asian stocks were mixed, Europe was trading lower in early deals on persistent worries over Cyprus and also surprise fall in German manufacturing data. France's CAC was down by 1.07 per cent, followed by Germany's DAX (0.76 pc) and the UK's FTSE (0.64 pc).
A sharp rise in ICICI Bank, HDFC and Bharti Airtel limited the Indian benchmark indices downslide to a major extent, brokers said.
"Given the domestic political uncertainty, Cyprus crisis and next week being a truncated one on account of Holi and Good Friday, market may enter into a consolidation phase," said Amar Ambani, Head of Research, IIFL.
19 Sensex components closed with losses while 11 finished
higher. Bajaj Auto was the top loser with a fall of 4.61 per
cent, followed by Tata Motors (4.22 pc), Tata Power (4.06 pc),
HDFC Bank (3.14 pc), L&T (2.85 pc), Maruti Suzuki (2.45 pc),
Hindalco (2.43 pc), Tata Steel (2.15 pc), HUL (1.90 pc), Hero
MotoCorp (1.81 pc), Dr Reddy's(1.77 pc), Cipla (1.59 pc), BHEL
(1.29 pc), RIL (1.09 pc), ONGC (0.95 pc) and ITC (0.80 pc).
However, recently battered Bharti Airtel shot up by 5.99 per cent. ICICI Bank was also up by 3.35 per cent, followed by HDFC (2.09 pc), Jindal Steel (1.02 pc) and Wipro (0.99 pc).
Outside benchmark indices, shares of Manappuram Finance after a few sessions of drubbing ended over 1 per cent higher.
Among sectoral indices, S&P BSE-Realty dropped by 2.91 per cent, followed by S&P BSE-Power (2.38 pc), S&P BSE-CG (2.30 pc), S&P BSE-Auto (2.23 pc), S&P BSE-PSU (1.19 pc) and S&P BSE-Oil&Gas (1.18 pc).
The total market breadth remained negative as 1,926 stocks closed with losses while 942 that finished with gains.
Total market turnover rose to Rs 2,488.48 crore from Rs 2,175.56 crore on Wednesday.
Foreign Institutional Investors (FIIs) pulled out Rs 236.72 crore Wednesday, as per provisional data with stock exchanges.