Sensex fell by 0.74 percent which was one of the biggest fall since July
Picture for representational purpose
Mumbai: Equity benchmarks on Thursday logged their biggest drop in 20 days with Sensex slipping below 26,000 mark and the Nifty ending at 7,721.30 on caution due to expiry of monthly derivative contracts and fund outflows after the US Fed’s move to trim its bond buying programme hit sentiment. Banking, power, consumer durable and capital goods stocks attracted profit-selling. ICICI Bank and Maruti Suzuki shares dropped even after in-line quarterly results, said brokers.
The Sensex on Thursday resumed better and moved side ways in a narrow range till mid-session. However, it met with strong resistance and gradually declined to end at 25,894.97, a fall of 192.45 points or 0.74 per cent. This is its biggest fall since July 11 when it slipped 348.40 points. The 50-issue CNX Nifty of the NSE dipped by 70.10 points, or 0.90 per cent, to 1-1/2-week low of 7,721.30. The Nifty’s drop was also its steepest since July 11 (down 108.15 points.)
Losses in HDFC, ITC, Tata Motors, M&M, TCS, HUL, Wipro, Maruti Suzuki and BHEL weighed on indices. Globally, the US Fed’s decision to continued with gradual tapering and reducing asset purchases by another $10 billion a month, triggered concerns that flows into emerging market would slow.Besides, risk-aversion was seen due on reports that Argentina has failed to strike a deal to avert its second default in more than 12 years.
Key benchmark indices in Japan, South Korea and Taiwan closed lower while from China, Hong Kong and Singapore concluded higher. Foreign portfolio investors sold shares worth a net '381.66 crore on Wednesday, as per provisional data from bourses.
Jayant Manglik, president-retail distribution, Religare Securities said, “Benchmarks were seen losing close to a per cent in a volatile session of the F&O expiry day. After the initial range bound move, selling pressure in the banking, power and consumer durables space triggered the breakdown. Mainly, weak global cues and lack of buying interest among the participants led to the fall.”
( Source : PTI )
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