Savage selling across markets as Fed tapering sees panic selling

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Savage selling in stocks as Fed tapering sees panic selling
It was a sea of red across the Indian markets, as the Sensex and Nifty collapsed in one of the biggest falls in recent memory. Fears of a falling rupee, rumour of a potential sovereign downgrade and worries over QE3 tapering by the Fed Reserve sent stocks into a tailspin.

The Sensex ended the day 749 points lower, while the Nifty sank a huge 234 points. It was virtual mayhem as foreign funds sold heavily into frontline stocks, with 48 out of the 50 components of the Nifty trading in the red. Investors were worried that capital flows which are being used to fund the current account deficit may pose problems, if the Federal Reserve tapers QE3.
Axis Bank fell a huge 8 per cent, while Bank of Baroda and DLF also lost 8 per cent each. Even bellweather stocks like FMCG and software stocks fell in trade.

ITC and Hindustan Unilever fell 4%, while Infosys and TCS also dropped 4%. One can't remember when HDFC and HDFC Bank collapsed more than 5 per cent in trade.

Metal stocks which had rallied in the last few trading days melted with Tata Steel, Hindalco and Jindal Steel falling in trade. Hero Motor Corp was the only stock that managed to show some resilience and ended the day higher.
Pharma stocks which have remained steady in the last few trading sessions also saw selling pressure with Lupin Labs, Ranbaxy Labs and Sun Pharma.

Meanwhile, markets in Asia ended the day lower on Fed worries over tapering. The Jakarta Composite, the Hong Kong's Hang Sang, the Singapore's Strait Times and the Japanese Nikkei ended the day lower.

Read more about: sensex, nifty, federal reserve
Story first published: Friday, August 16, 2013, 14:37 [IST]
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