Sensex drops 1,203 points in global signals, weak car sales
Mumbai: a renewed global settlement as US futures. USA They indicate an abruptly lower opening on Wall Street on Wednesday and disappointing March auto sales figures in India combined to pull the sensex it fell by 1,203 points, or 4.1%, to 28,265. A trade holiday on Thursday because of Ram Navami led merchants to liquidate their speculative positions and this added to the negative sentiment.
In the Skilled It also lost 4% or 344 points to close at 8,253 points, below the crucial support level of 8,350. The rupee also lost 71 paise to close at 76.34 on Wednesday.
Of the 30 sensex stocks, HDFC Bank, Infosys, Kotak Bank and TCS contributed more than half of the index’s slide, while buying in Hero Moto and Bajaj Auto cushioned the fall to some extent. The day’s slide also left investors poorer by Rs 3.3 lakh crore with the BSE Market capitalization now at around Rs 109 lakh crore.
Foreign funds continued to sell on the Indian bourses with a net outflow of Rs 1,117 crore. To market players’ surprise, even domestic funds have now pressed the sell button in a big way and recorded a net selling figure of Rs 450 crore, BSE data showed.
According to Religare Broking Research Vice President Ajit Mishra, the market witnessed a sharp decline on Wednesday when participants noted a surge in coronavirus numbers in India and weak car sales numbers. Furthermore, weak global signals combined with continued outflow of foreign funds also influenced sentiment, he wrote in a note.
Investor confidence is continually affected due to growing fear of the global recession, rising infection cases, and weak macros, leading to sales on global markets, including India. Also, in the short term, there are no new positive triggers that can fuel investor sentiment. ”
Among commercial and passenger vehicle manufacturers, Maruti closed down 1%, while Tata Motors lost 4.4%, M&m4.3%andashokleylandfell4.5%.almostallautomakersshowedmorethana40%dropinmarchsalesvolumes.