Slipping from record highs, the Sensex on Tuesday plunged 518 points and the Nifty tanked 164 points in their worst drop in 10 months on profit booking as investors said Narendra Modi-led NDA government's first Railway budget carried no big-bang announcement.
Advertisement
Both indices fell about two per cent with the BSE Sensex ending at 25,582.11 and the NSE Nifty settling at 7,623.20.
Railway Minister Sadananda Gowda on Tuesday tabled his maiden Railway Budget in Lok Sabha where he proposed to attract private domestic and FDI in infrastructure projects and pursuing private-public partnership to boost the finances of the cash-strapped railways.
"...the budget was about operationalising legacy projects which were languishing as no focus was there on execution of these projects. It was this absence of big bang announcement that led to a sharp correction in equity markets," said Ritesh Jain, Chief Investment Officer, Tata Asset Management Ltd.
Shares of railway related companies that were trading up at initial stages, dropped upto 20 per cent on profit-selling. Prominent losers included shares of Texmaco Rail, Titagarh Wagons, Kalindee Rail Nirman and Container Corp.
The BSE 30-share barometer resumed better but later it turned negative and closed at 25,582.11, a fall of 517.97 points or 1.98 per cent. Intra-day, it made a new record high of 26,190.44.
Among the Sensex constituents on Tuesday, 28 ended lower. BHEL (8.16%), NTPC (5.36%), Tata Power (5.04%) and Coal India (4.96%) led the laggards in bluechips.
The 50-issue Nifty fell 163.95 points, or 2.11%, to 7,623.20 after hitting new peak of 7,808.85 intra-day.
Both the indices registered their biggest fall in absolute term in ten months as Sensex had plunged by 651.47 points and the Nifty by 209.30 points on September 3, 2013.
Selling was seen across-the-board as all 12 BSE sectoral indices closed in the red. Second-tier stocks witnessed heavy selling from retail investors and their indices underperformed the Sensex. Realty, power, capital goods, consumer durable, metal, refinery and banking shares took the lead in downslide.
Mixed Asian cues and weak European opening also weighed on the market sentiment.
Meanwhile, Foreign Portfolio Investors bought shares worth Rs. 198.57 crore on Monday, as per provisional data. Market participants are now wating for the outcome of the Union Budget to be announced on July 10. Jignesh Chaudhary, Head of Research, Veracity Broking Services said: "The Railway Budget reflected the futuristic view on Indian Railways and reforms which will help to achieve the said plan. The PPP model (public-private partnerships) will finance the future modernization projects...the budget disappointed the common man who was expecting some relief."
Globally, markets in Japan and Singapore closed with losses while those from China, South Korea and Taiwan finished with gains. Hong Kong market settled stable. However, the France's CAC was quoting lower by 0.38%, Germany's DAX by 0.53% and the UK's FTSE by 0.49%. Major losers include BHEL (8.16%), NTPC (5.36%), Tata Power (5.04%), Coal India (4.96%), L&T (4.35%), Tata Steel (4.25%) and ONGC (4.23%). SBI (3.94%), Sesa Sterlite (3.61%), Reliance Industries (3.04%), Hindalco (2.99%), Bajaj Auto (2.67%), ICICI Bank (2.65%) and Tata Motors (2.16%) logged sharp losses. M&M (2.13%), Maruti Suzuki (1.90%), Axis bank (1.78%), Dr Reddy's Lab (1.68%), Hero Moto (1.52%), Gail India (1.52%), Bharti Airtel (1.44%), TCS (1.36%), Wipro (1.26%) and HDFC Bank (1.18%) also ended lower. Among the S&P BSE sectoral indices, Realty fell by 7.16%, followed by Power 6.37%, Capital Goods 4.80%, Consumer Durables 4.55%, Metal 4.22%, Bankex 22.35%, Auto 2.27%, Teck 1.36%, Healthcare 1.21% and IT 1.04%. Market breadth turned negative as 2,234 stocks finished with losses while 770 stocks ended higher. Total turnover rose to Rs. 4,295.79 crore from Rs. 4,205.06 crore on Monday.
This entry passed through the Full-Text RSS service — if this is your content and you're reading it on someone else's site, please read the FAQ at http://ift.tt/jcXqJW.
from Top Stories - Google News http://ift.tt/1qGGer2
via IFTTT
0 comments:
Post a Comment