Sensex tumbles 253 points to go below 16K

Mumbai, June 1: Stocks today registered a sharp fall with the Sensex taking a 253-point plunge to close below the 16,000 mark following renewed concerns over decelerating Indian economic growth and worries over China showing
sensex tumbles 253 points to go below 16k - India...
PTI June 01, 2012 19:11 IST
Mumbai, June 1: Stocks today registered a sharp fall with the Sensex taking a 253-point plunge to close below the 16,000 mark following renewed concerns over decelerating Indian economic growth and worries over China showing slower pace of manufacturing expansion.





The market which opened flat, quickly slipped into a negative zone and closed at 15,965.16 points, the lowest level in a week. Traders were tracking weak Asian and European markets that lost between 1-2 per cent.

While Asian markets were influenced by lesser-than -expected growth in the China's manufacturing, troubles in Spain and Ireland affected the sentiment in Europe. The Indian stocks saw a combined impact of these global factors on top of domestic woes as reflected by the nine-year low GDP growth of 5.3 per cent in the last quarter of the fiscal 2011-12.

The official purchasing managers' index - covering Chinese companies fell to 50.4 level in May, the weakest reading this year. India's manufacturing sector also slipped marginally in May, an HSBC survey today said.

Across the Indian market, seven out of 10 stocks ended lower leaving investors poorer by Rs 91,000 crore. Capital Goods, Power, Auto, Refinery and IT indices logged losses of at least 2 per cent while shares of Banking, Metal, Realty, PSU and Healthcare sectors also moved down.

In Sensex, 27 of the 30 stocks ended the session with losses with Tata Motors emerging as the biggest loser down 3.73 per cent after investors sold shares due to lacklustre sales in May, followed by L&T (3.22 pc) and Reliance (3.2 pc).

“Selling pressure intensified in the equity markets not only in India but in Asia and Europe too. After a flat opening, markets went deep in to red soon after,” Milan Bavishi, Head Research, Inventure Growth & Securities said.

The stock market also ignored rupee's strength against the US dollar today with the domestic currency trading back at 55-levels today after hitting a record low of 56.52 yesterday. The NSE 50-share Nifty also fell by 82.65 points or 1.68 per cent to 4,841.60.

Most Asia markets ended lower after data indicated that momentum is slowing in the Chinese economy.

Key benchmark indices in Hong Kong, Singapore, Taiwan, Japan and South Korea were down by 0.38 per cent to 2.68 per cent while China's Shanghai Composite was flat.

European market were mostly lower on lingering fears over the economies of Greece and Spain. Key benchmark indices in France, Germany and London were down by 0.7-2.1 per cent.  Major Sensex losers were Tata Motors (3.73 pc), L&T (3.22 pc), Reliance (3.16 pc), Sterlite (3.08 pc), Maruti (2.94 pc), ONGC (2.92 pc), HDFC Bank (2.87 pc), Jindal Steel (2.81 pc), BHEL (2.48 pc), Tata Power(2.14 pc), Infosys (2.13 pc), HUL (1.80 pc), Wipro (1.79 pc) and NTPC (1.77 pc).  HDFC (1.74 pc), TCS (1.69 pc), SBI (1.43 pc), DLF (1.30 pc) and Tata Steel (1.20 pc) were among losers.

However, Gail firmed up by 2.65 per cent and ITC was also up by 1.54 per cent.

“For the current month we are expecting that the market to remain volatile ahead of major outcome such as Greece Election on and RBI meeting during the middle of the current month,” said Shrikant Chouhan, Head of Technical Research, Kotak Securities.

The market breadth continued to remain negative as 1,830 shares finished with losses and 850 shares ended with gains.  Among the sectoral indices, the BSE-Capital Goods fell by 2.99 per cent, followed by the BSE-Power (2.49 pc), the BSE-Auto (2.17 pc), the BSE-Oil&Gas (2.11 pc), the BSE-IT (2.01 pc), the BSE-Bankex (1.84 pc) and BSE-Teck (1.83 pc).

The total market turnover firmed up to Rs 1,873.85 crore from Rs 1,782.54 crore.

Foreign institutional investors (FIIs) sold shares worth a net Rs 665.76 crore yesterday as per provisional figures from the stock exchanges.
 
Chunav Manch Gujarat 2017
 
 
killer smog
 

You May Like

   
 

More from business

 
 
Assembly Elections 2017