Saturday , 14 December 2019
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Sensex tumbles 340 pts on global cues

MUMBAI: The BSE benchmark Sensex Friday tumbled 340 points, its biggest fall in over two weeks, due to sharp profit-booking amid weakness overseas on worries about growth in Euro area and disinflation risks, but Infosys bucked the trend and surged 6.68 per cent on smart Q2 earnings.
The 30-share barometer, which had gained 390.49 points yesterday, fell by 339.90 points, or 1.28 per cent, to 26,297.38, with all the sectoral indices, except IT and Teck, ending in negative zone with losses up to 4 per cent. This is Sensex’s biggest single day fall in over two weeks. This also marks the third straight weekly fall of the index.
On similar lines, the National Stock Exchange index Nifty struggled to maintain the 7,900-mark and ended down by 100.60 points, or 1.26 per cent, at 7,859.95.
“Indian equity markets saw sharp profit booking today with Nifty erasing gains made in previous session and closing at 7859.95. The weakness was a result of worries about growth in Euro area and disinflation risks which were reiterated by ECB president Draghi,” said Kiran Kumar Kavikondala, director and CEO, WealthRays Securities.
Of the 30 Sensex shares, 23 shares ended with losses led by Tata Motors (down 5.3 per cent), Hindalco (4.79 per cent), Sesa Sterlite (4.60 per cent), Tata Steel (4.03 per cent) and Mahindra and Mahindra (3.59 per cent).
However, shares of IT major Infosys surged 6.68 per cent after the company posted 28.6 per cent jump in consolidated net profit for the quarter ended September 30.
Sectorwise, the metal index suffered the most by losing 4.11 per cent, followed by auto index by 2.78 per cent, FMCG index 2.56 per cent, Banking index closed 1.80 per cent lower. The sentiments were down from the beginning in reaction to statement made by two Fed officials that the Federal Reserve will probably start raising interest rates around the middle of next year. Even better than expected results from IT major, Infosys Ltd, failed to cheer the market,” said Jayant Manglik, president-retail distribution, Religare Securities.
Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net Rs 20.89 crore on Thursday, as per provisional data.
Asian stocks finished lower after US shares tumbled on Thursday after weak German export data raised fears that a recession at the heart of Europe could slow down the global economy.
Key benchmark indices in China, Singapore, Hong Kong, Japan and South Korea fell by 0.62 per cent to 1.90 per cent.
European markets were also trading lower amid concern the regions central bank will face obstacles in measures to revive the region’s economy. Key benchmark indices in France, Germany and UK fell sharply by 1.41 per cent to 2.26 per cent.
In the US markets on Thursday, Dow Jones industrial average fell by 1.97 per cent, S&P 500 dropped by 2.07 per cent and Nasdaq composite tumbled by 2.02 per cent.
Shares of Midcap and Small-cap tumbled by 1.38 per cent and 1.12 per cent respectively on renewed selling pressure from retail investors.
The total market breadth turned negative as 1,910 stocks closed in red while 998 finished in green.

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