Weakness in metal, energy stocks pulls down indices
Mumbai : Benchmark indices ended sharply lower as market sentiment was dented after the Telugu Desam Party (TDP) pulled out of the National Democratic Alliance (NDA), leading to concerns about Bharatiya Janata Party’s (BJP) chances at the Lok Sabha elections next year.
Subdued global markets and weakness in metal and energy stocks also weighed on the indices on Friday. Risk appetite across the globe took a hit due to rising concerns over a global trade war. The BSE Sensex dived almost 510 points, its biggest single-day fall since February 6, to close at 33,176 points.
For the third straight week stocks ended in the red with the flagship Sensex recording a weekly fall of 131.14 points, or 0.39 per cent, and the NSE Nifty losing 31.70 points, or 0.30 per cent.
The broader NSE Nifty dipped below the 10,200-mark to hit a low of 10,180.25 before ending at 10,195.15, down by 165 points, or 1.59 per cent. Investor wealth saw an erosion of Rs 1.86 lakh crore amid a massive sell-off in the broader market.
India’s widening trade deficit also weighed on local indices. The February trade gap widened 26 per cent on-year. Market slid as investors continued to remain cautious amid current issues in US administration on global trade and domestic political uncertainties, said Vinod Nair, head of research, Geojit Financial Services.
The Lok Sabha could not take up notices for no-confidence motion with Speaker Sumitra Mahajan saying there was no order in the House and adjourned the proceedings for the day.
Market capitalisation of BSE-listed companies plummeted Rs 1,86,415.38 crore to Rs 1,43,17,308 crore.
Other Asian markets were also in the negative zone as investors fret over the prospect of a global trade war, accelerating selling pressure on the domestic bourses, brokers said.
Foreign portfolio investors had sold shares worth Rs 705.40 crore on net basis on Thursday. All the sectoral indices led by metal, oil & gas, energy, PSU, power and banking ended in the negative zone with losses of up to 2.30 per cent.
In the Sensex kitty, Tata Motors emerged the worst performer by slumping 3.67 per cent, followed by Asian Paint 3.09 per cent. Other laggards include, Adani Ports, Hero MotoCorp, NTPC, Sun Pharma, Kotak Bank, ONGC, HDFC, L&T, Dr Reddy’s, ITC, Tata Steel, Maruti Suzuki, TCS, Bajaj Auto, Reliance Industries, Power Grid and HDFC Bank.
