Weak global cues subdue equity indices; Sensex down over 300 points (Roundup)

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Mumbai, Sep 3 (IANS) Weak global cues along with a slowdown in the manufacturing sector plunged the key Indian equity indices nearly 1 per cent on Monday after the indices started the day’s trade on a sharply higher note.

Globally, investor sentiments were subdued owing to the concerns of escalation in the US-China trade war, according to analysts.

The Nikkei India Manufacturing Purchasing Managers’ Index was registered at 51.7 in August, compared to 52.3 in July, which further dampened the domestic sentiments.

The indices had opened sharply higher on the back of healthy April-June GDP data released last week but could not hold on to the gains.

Although the market saw a gradual decline from the highs throughout the day, a major drop in the indices occurred around the last hour of trade.

Index-wise, the Nifty50 on the National Stock Exchange (NSE) closed at 11,582.35 points, lower by 98.15 points or 0.84 per cent from its previous close of 11,680.50 points.

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Similarly, the barometer S&P BSE Sensex closed in the negative territory. It had opened at 38,915.91 points, closed at 38,312.52 points, lower by 332.55 points or 0.86 per cent from the previous close of 38,645.07 points.

Volatility in the market can be gauged from the fact that it traversed from the day’s high of 38,934.35 points hit in the morning session to a low of 38,270.01 points by the end of the trade.

In the broader markets, the S&P BSE Mid-cap declined by 0.45 per cent while the S&P BSE Small-cap declined by 0.17 per cent from its previous close. The BSE market breadth was largely even with 1,399 declines and 1,351 advances.

“Trading for the week began on a positive note as key benchmark indices edged higher in early trade boosted by good first-quarter GDP data,” said Abhijeet Dey, Senior Fund Manager for Equities at BNP Paribas Mutual Fund.

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However, the market finally closed the day’s trade in the red due to selling pressure, Dey added.

According to Deepak Jasani, Head of Retail of Research, HDFC Securities, the major Asian markets closed on a negative note, and the European indices like FTSE 100 and CAC 40 traded in the green.

On the currency front, the Indian rupee crashed to close at a fresh low of 71.21 against the US dollar, weaker by 21 paise weaker than its previous close of 70.99-71 per greenback.

The collapse in the Indian rupee came around the last hour of trade, after it had traded strongly than its previous close for most part of the day.

Investment-wise, provisional data with exchanges showed that foreign institutional investors sold scrips worth Rs 21.13 crore and domestic institutional investors sold stocks worth Rs 542.12 crore.

Sector-wise, the S&P BSE consumer durables index rose 85.27 points, the metal index was up 35.37 points and the telecom index rose by 6.39 points.

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In contrast, the S&P BSE banking index declined by 365.55 points, the FMCG index fell by 273.04 points and auto stocks stocks ended 211.18 points lower than its previous close.

The top gainers at the Sensex were Wipro, up 2.49 per cent at Rs 309.15, Tata Motors (DVR), up 1.34 at Rs 144.10; Bajaj Auto, up 0.68 per cent at Rs 2,765.15; HDFC Bank, up 0.58 per cent at Rs 2,074.30 and Sun Pharma, up 0.57 per cent at Rs 655.95.

The majors losers were Hindustan Uniliver, down 4.58 per cent at Rs 1,699.05; Power Grid, down 2.92 per cent at Rs 194.75; Axis Bank, down 2.69 per cent at Rs 631.75; ICICI Bank, down 2.51 per cent at Rs 334.05 per share; and ITC, down 2.01 per cent at Rs 312.75 per share.

–IANS

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