Post Session- Sensex snaps 2-day gains on US Fed stimulus concerns Analysis for Jul 08, 2013

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The key domestic benchmarks ended in the red on Monday as the Sensex shed 171 points with stock markets across Asia witnessing heavy sell-off as the strong US jobs data raised speculation that the US Federal Reserve may start tapering stimulus in the near-term, heightening fears over foreign fund outflows in emerging markets. The Indian rupee slumped to a record low of 61.21 against the US dollar amid selling by FIIs, widening concerns over a ballooning current account deficit, dashing hopes of a near-term rate cut.

Asian Markets slumped on Monday as robust US jobs data strengthened the case for the US Federal Reserve to pare stimulus in the near-term while deepening concerns over a cash crunch in China also dented sentiment. Shanghai Composite tumbled as financial and property shares were hit after Citigroup lowered China"s economic growth forecast for 2013 to 7.4% from 7.6% estimated earlier. The deepening cash crunch has sparked concerns that China may fail to reach its 7.5% official economic growth target for 2013. Hang Seng ended lower as investors were cautious ahead of the inflation and lending data later this week while Fed stimulus concerns also hit sentiment. Japan"s Nikkei 225 also ended down as the country"s current account surplus shrank to USD 540.7 billion yen in May from USD 750 billion yen in April, dashing optimism over the nation"s economic recovery.

The BSE SENSEX closed at 19,324.77, down by 171.05 points or by 0.88 per cent and the NSE Nifty ended at 5,811.55, down by 56.35 points or by 0.96 per cent.

The BSE Sensex touched intraday high of 19,422.69 and intraday low of 19,185.92. The NSE Nifty touched intraday high of 5,833.85 and intraday low of 5,775.55.

Meanwhile, the BSE MIDCAP closed at 5,988.69, down by 3.3 points or by 0.06 per cent, while the BSE SMLCAP ended at 5,670.28, down by 21.77 points or by 0.38 per cent.

On the Sectoral front, Oil & Gas and PSU shed 1.94 per cent and 1.90 per cent, respectively.

The Market breadth, indicating the overall health of the market, was weak. On BSE out of total shares traded 2492, shares advanced were 1078 while 1289 shares declined and 125 were unchanged.

The top losers of the BSE Sensex pack were Oil And Natural Gas Corporation Ltd. (Rs. 304.45,-3.49%), Housing Development Finance Corporation Ltd. (Rs. 824.30,-3.01%), Tata Motors Ltd. (Rs. 288.20,-2.70%), GAIL (India) Ltd. (Rs. 318.10,-2.63%), Coal India Ltd. (Rs. 290.20,-2.32%), among others.

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Story first published: Monday, July 8, 2013, 16:12 [IST]
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