Sensex Snaps 5-day Gains, Down 173 Points on Geopolitical Crisis - The New Indian Express

Sensex Snaps 5-day Gains, Down 173 Points on Geopolitical Crisis

Published: 03rd March 2014 05:42 PM

Last Updated: 03rd March 2014 05:42 PM

Breaking long five session of gaining string, the benchmark S&P BSE Sensex today tumbled by over 173 points to end below 21K-mark at 20,946.65 following weak GDP data announced late last Friday amid sluggish global stocks triggered by geopolitical worries over Ukraine crisis.

Country's economy grew below expectations at 4.7 pct in October-December quarter on falling output manufacturing sector output, from 4.8 pct in July-September, making it a tough task to achieve 4.9 pct GDP expansion in 2013-14, which expressed concerns over the state of the economy.

The spiralling crisis in Ukraine has deteriorated as Russian President won parliamentary backing to send troops into its southern neighbor and Ukraine has also put its forces on combat readiness, making the situation worst and has left the investors and world leaders worried about how the country's instability could roil the global economy.

US and European allies also warned Russia not to intervene while Russia's central bank unexpectedly raised interest rates from 5.5 percent to 7 percent, in an effort to stabilise its currency and offset inflation.

Back home, overall 10 out of 12 sectoral indices closed in the red with HC, IT, Auto, Power and CG shares leading the downslide while only CD and Oil&Gas finished in the green and 25 out of 30 sensex-based scrips ended with losses while others concluded with gains.

The BSE 30-share barometer resumed slightly lower and tried to recover but failed and later moved down after morning session to settle at 20,946.65, down by 173.47 points or 0.82 pct. In last five sessions, it had gained 583.48 points or 2.84 pct.

The NSE 50-issue CNX Nifty also dropped by 55.50 points or 0.88 pct to 6,221.45.

Asian stocks, barring China, fell amid escalating geopolitical tension over Ukraine and the slower manufacturing in China. Key benchmark indices in Hong Kong, Singapore, Japan and South Korea fell by 0.44-1.47 per cent while from China rose by 0.92 pct.

European markets too were trading weak in the morning deals. The CAC was down by 1.78 pct, the DAX by 2.09 pct and the FTSE by 1.01 pct.

Mr. Jignesh Chaudhary, Head Of Research, Veracity Broking Services said,"The Geopolitical tension in the Eastern Europe region between Ukraine and Russia is creating a bit of stress in the financial markets across and the world, and its ripple effect is felt in Indian markets too, which pushed the markets in the negative zone. A muted and subdued regional Asian markets along with a weak Rupee, which is again trading below 62 levels after some corrections seen last week, kept the negative momentum building."

"A weak GDP data which was declared on later Friday evening also played in the minds of the traders who took a cautious approach in trading today," he added.

Losers from the Sensex were Dr Reddy's Lab 2.97 pct,BHEL 2.81 pct, Sun Pharma 2.75 pct, M&M 2.22 pct, Cipla 1.99 pct, SSLT 1.86 pct, Wipro 1.86 pct, Tata Motor 1.53 pct, Bajaj Auto 1.50 pct, TCS 1.41 pct, Icici Bank 1.35 pct, HUL 1.06 pct and L&T 1.04 pct while Ril moved up by 0.53 pct, Tata Steel 0.39 pct, Hindalco 0.38 pct, ITC 0.35 pct and Coal India 0.14 pct.

Among the S&P BSE sectoral indices, HC dropped by 1.55 per cent followed by IT 1.25 pct, Auto 1.18 pct, Power 1.18 pct, CG 1.04 pct and Teck 1.02 pct, while CD rose by 1.74 pct and Oil&Gas 0.24 pct.

Out of the total shares, 1,480 shares ended in red, 1,204 shares finished in green.

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