Sensex blocks 470 pts on weak macro data, global signals; Nifty ends in the minimum of 7 months
Mumbai, September 19 () Equity benchmarks resumed their downward march on Thursday, as lukewarm tax collection numbers fueled fears of a prolonged slowdown, leading investors to get rid of risky bets
The hawkish comments of the US Federal Reserve UU. And the incessant outflows of foreign funds weighed even more on the sentiment, operators said.
After turning 626 points, the BSE Sensex of 30 shares finished 470.41 points, or 1.29 percent, to 36,093.47.
Similarly, the broader NIF NSE fell 135.85 points, or 1.25 percent, to settle at 10,704.80. The previous closing minimum for Nifty was 10,604.35 on February 19, 2019.
It is said that the direct fiscal sweep of the Center grew only 4.7 percent until September 17, compared with a target of 17.5 percent budgeted for the entire year, which analysts say reflects a growing decline of demand and overall growth.
Yes, Bank was the biggest loser in the Sensex package, falling 15.52 percent, after a Moody's report said that Altico's default could be negative for banks due to its significant exposure to the real estate sector.
Among Moody's, Yes Bank and IndusInd Bank rates, they have the highest direct exposure to commercial real estate and will be susceptible to asset quality difficulties if the sector continues to decline, the agency said.
IndusInd Bank, ICICI Bank and Axis Bank also fell to 3.59 percent.
Other losers included Tata Steel, Maruti, SBI, RIL, Tech Mahindra, ONGC, Vedanta, Bajaj Finance, Hero MotoCorp and TCS, which fell to 3.66 percent.
Tata Motors, HDFC Bank, Bharti Airtel and Asian Paints were the only winners, with an increase of up to 1.97 percent.
The lower tax collection figures scared the markets today, as the FII continued selling on key pivots, dragging the indexes down. The exposure of many private sector banks to commercial real estate further accentuated sales to afternoon trade at these counters. Investors are nervous about PSU names as they keep losing market capitalization quickly, said S Ranganathan, Head of Research at LKP Securities.
Sectorially, the rates of BSE, oil and gas, bankex, metal, real estate, automobiles, medical care, teck and IT were reduced by up to 2 percent. Telecom was the only winner, up 0.17 percent.
The broadest indexes of medium and small capitalization of BSE ended at 1.48 percent lower.
Meanwhile, the United States Federal Reserve reduced the policy rate by 25 basis points on Wednesday, but lowered hopes for further rate cuts, as it took a cautious approach to further reduce loan costs.
In other parts of Asia, the Shanghai, Nikkei and Kospi composite index ended on a positive note, while Hang Seng was set to red.
The European stock exchanges were traded in green in their respective first sessions.
The foreign portfolio investor sold shares worth a net worth of Rs.959.09 million on Wednesday, while domestic institutional investors bought shares worth Rs.780.45 million, according to provisional data.
Brent crude futures gained 1.98 percent at USD 64.81 per barrel (intraday). The rupee depreciated 6 paise (intraday) to quote at 71.30 per US dollar. ANS ABM ABM