Mumbai, Aug 10 (IANS) The key Indian equity indices on Thursday tumbled for the fourth consecutive session as negative global cues, a weak rupee, and heavy selling pressure in automobile, healthcare, and capital goods stocks hampered investors’ sentiments.
The key indices were pulled down by individual index heavyweights like Tata Motors, Dr. Reddy’s Lab, Sun Pharma and Adani Ports, among others, which faced intense selling pressure.
According to market observers, volatility was witnessed in the equity markets during the day’s trade, with the NSE Nifty50 of the National Stock Exchange (NSE) slipping over 100 points, falling below the psychologically important 9,800-level for the first time since July 18.
However, the NSE Nifty50 recovered slightly to close lower by 87.80 points, or 0.89 per cent, at 9,820.25 points.
The 30-scrip Sensitive Index (Sensex) of the BSE, too, plunged over 300 points intra-day.
The Sensex, which opened at 31,750.73 points, closed at 31,531.33 points — down 266.51 points, or 0.84 per cent, from its previous close at 31,797.84 points.
The Sensex touched a high of 31,756.27 points and a low of 31,422.80 points during the intra-day trade.
The BSE market breadth heavily favoured bears — with 2,274 declines and 303 advances.
In terms of the broader markets, the S&P BSE mid-cap index declined by 2.64 per cent and the small-cap index by 3.60 per cent. Both the indices crashed more than 5 per cent during the last three sessions.
“Markets corrected further on Thursday as selling intensified in the last hour of trade. It was the fourth consecutive session of losses, as Nifty closed at almost its one-month lows,” Deepak Jasani, Head of Retail Research, HDFC Securities, told IANS.
“The indices ended lower led by losses in pharma, auto, and banking stocks. Individual stocks also dragged the sentiment on poor June-quarter result show,” Jasani added.
On the currency front, the rupee weakened by 25 paise to close at 64.08-09 to a US dollar from its previous close at 63.83-84.
According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, global sentiment was largely weak with Asian stocks falling as investors fretted about the simmering tensions between the United States and North Korea.
“Tata Motors’ shares fell over 8 per cent to their lowest in over a year after the company’s 42 per cent rise in June-quarter profit, helped by a one-off gain related to changes to Jaguar Land Rover’s pension plans, failed to please investors,” Desai told IANS.
“Dr. Reddy’s Labs shares plunged 5 per cent after the firm said its Bachupally manufacturing unit (in Hyderabad) has not been renewed by the German regulator post-inspection, and hence the unit won’t be able to dispatch products to European Union countries, until the next inspection dates,” added Desai.
All the sub-indices on the BSE ended in the red, barring the IT index, which rose by 56.73 points, and the Teck index, which was up 7.63 points.
The S&P BSE automobile index tumbled by 679.29 points, followed by the healthcare index by 415.80 points, and the capital goods index by 283.65 points.
Major Sensex gainers on Thursday were: Infosys, up 1.35 per cent at Rs 982.50; Wipro, up 0.44 per cent at Rs 288; Tata Consultancy Services, up 0.37 per cent at Rs 2,511.25; Larsen and Toubro, up 0.30 per cent at Rs 1,159.50; and Mahindra and Mahindra, up 0.26 per cent at Rs 1,395.
Major Sensex losers were: Tata Motors (DVR), down 9.26 per cent at Rs 219.90; Tata Motors, down 8.60 per cent at Rs 380.90; Dr. Reddy’s Lab, down 4.77 per cent at Rs 1,948.95; Sun Pharma, down 3.08 per cent at Rs 460.15; and Adani Ports, down 2.66 per cent at Rs 386.40.
Post Source: Ians feed