Indian equities sink on negative global cues

August 19th, 2011 - 7:32 pm ICT by IANS  

Sensex Mumbai, Aug 19 (IANS) A benchmark index for Indian equities markets Friday fell sharply, over 328 points, amid negative cues from other global bourses over fears of another round of recession in Europe and the US.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 16,237.78 points, closed at 16,141.67 points, down 328.12 points or 1.99 percent compared to its previous close at 16,469.79 points.

The 50-scrip S&P; CNX Nifty of the National Stock Exchange ended 1.99 percent lower at 4,845.65 points.

The BSE midcap closed 1.36 percent down, while the smallcap index ended 2.01 percent lower. Broader market indices like the BSE 500 edged 1.68 percent lower.

The market breadth at the BSE was negative, with 773 stocks moving up, compared to 2,083 on the decline and 105 remaining unchanged.

Among gainers on the Sensex were: Jaiprakash Associates, up 2.5 percent at Rs.59.50; DLF, up 2.47 percent at Rs.186.90; Hero MotoCorp, up 2.19 percent at Rs.1,993.65; and Hindalco, up 1.13 percent at Rs.139.30.

Main losers included: Infosys, down 5.79 percent at Rs.2,225.40; Tata Motors, down 5.28 percent at Rs.713.40; L&T;, down 4.95 percent at Rs.1,544.95; and BHEL, down 4.63 percent at Rs.1,683.25.

Of the 13 sectoral indices on the BSE, 12 closed in the red. IT, capital goods, telecom and banking stocks were among the biggest losers.

“For Friday, the global cues were negative with US markets closing down by over 3.5 percent on Thursday,” said Sanjeev Zarbade, vice president with Kotak Securities.

“The sell-off in the US markets was triggered by disappointing economic data points in manufacturing and housing sectors. Thus, the Sensex opened in the negative and the selling pressure continued throughout the trading session. The selling was broad based across major sectors,” he added.

Fears of another round of recession in Europe and the US strengthened Thursday, pulling those markets down drastically. Asian markets, which opened Friday, reacted to this and also fell sharply.

The benchmark Japanese Nikkei closed 2.51 percent lower at 8,719.24 points, while the Chinese Shanghai Composite index ended 0.98 percent down at 2,534.36 points.

Hong Kong’s Hang Seng closed 3.08 percent down at 19,399.92 points.

European markets fell soon after opening bell Friday, having fallen sharply in the previous session.

The FTSE 100 of UK was ruling 1.89 percent lower at 4,996.12 points, while the German DAX was down 3.48 percent at 5,407.87 points.

The French CAC 40 was down 2.08 percent at 3,011.98 points.

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