Thaindian News

Mumbai, Dec 16 (IANS) Indian equities markets saw fresh round of selling Friday with a benchmark index falling 345 points to an over two-year low even though the Reserve Bank kept interest rates unchanged.

The fall was led by capital goods, realty and banking stocks and heavyweight Reliance Industries slipped 3.4 percent.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 15,868.78 points, closed at 15,491.35 points, 345.12 points or 2.18 percent, from its previous close at 15,836.47 points.

The Sensex had risen more than 232 points during the day.

The 50-scrip S&P; CNX Nifty of the National Stock Exchange also fell sharply and closed at 4,651.6 points, down 2 percent or 94.75 points from its previous close.

Both the benchmarks closed at two-year lows.

Profit booking was also seen in stocks which rose in anticipation of the Reserve Bank of India not hiking interest rates. As expected, the apex bank in its mid-quarterly review of the monetary policy decided to maintain the status quo on key interest rates.

The central bank also indicated that it would from this point onward look at easing interest rates as inflation had started declining and was expected to moderate to 7 percent by end-March.

Broader markets also ended in the red with the BSE 500 index slipping 1.98 percent. The BSE midcap index closed 1.72 percent lower while the BSE smallcap index moved down 1.6 percent.

The market breadth was negative, with 847 stocks advancing and 1,884 on the decline. Another 143 were unchanged.

Prominent losers on the 30-scrip Sensex included: L&T;, down 5.33 percent at Rs.1,075.80; Sterlite Industries, down 4.28 percent at Rs.89.40; NTPC, down 3.91 percent at Rs.159.90; and BHEL, down 3.88 percent at Rs.240.45.

Only three stocks on the benchmark saw modest gains: Wipro, Maruti Suzuki and Infosys.

According to data available with the Securities and Exchange Board of India (SEBI), foreign institutional investors sold scrips worth $41.78 million Friday.

Asian markets closed in the red with negative sentiments gripping the bourses. A survey released Thursday by Japan’s central bank showed business sentiment dipping. Also a bond auction by Italy saw the country paying a higher rate of interest signifying continued nervousness about the eurozone’s debt woes.

The Japanese Nikkei nudged up 0.29 percent to close at 8,401.72 points. Hong Kong’s Hang Seng moved up 1.43 percent and ended at 18,285.39 points, while the Chinese Shanghai composite index rose 2.02 percent to close at 2,224.84 points.

European markets were ruling in the green.

Britain’s FTSE 100 was ruling 0.79 percent up at 5,443.76 points, while the German DAX was trading 0.52 percent higher at 5,760.61 points.

The French CAC 40 was ruling 0.34 percent higher at 3,009.07 points.