Post Session- Sensex extends losing streak on Fed QE taper Analysis for Jan 30, 2014

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The key domestic benchmarks ended lower for the fifth day on the trot as the Sensex, which shed nearly 150 points fell to the lowest level in ten weeks as the US Federal Reserve"s decision to taper QE by another USD 10 billion roiled markets across Asia. Fears have risen that the QE taper may lead to outflows in emerging markets as foreign investors switch their funds to US markets. The Indian markets succumbed to a global sell-off even as the Finance Ministry stated that the U.S. Federal Reserve"s decision to trim its monetary stimulus will not affect the Indian market. Selling pressure also intensified as traders rolled over their positions on the day of the expiry of the F&O December contracts.

Asian stocks fell today as the US Federal Reserve continued to unwind monetary stimulus, paring QE by USD 10 billion to USD 65 billion, undertaking a cut in QE for the second straight month, clouding the outlook for capital inflows into emerging markets. China"s Shanghai Composite ended lower after Chinese manufacturing fell into contraction for the first time in six months, signaling a deepening slowdown in the world"s second biggest economy. The gauge measuring Chinese manufacturing fell to 49.5 this month from 50.5 in December, with a reading below 50 signaling contraction, HSBC said. Hang Seng ended lower on worries over the Chinese economy and Fed QE taper. Japan"s Nikkei 225 slumped on US Fed QE taper.

The BSE SENSEX closed at 20,498.25, down by 149.05 points or by 0.72 per cent, and the NSE Nifty ended at 6,073.7, down by 46.55 points or by 0.76 per cent.

The BSE Sensex touched intraday high of 20,528.41 and intraday low of 20,343.78 The NSE Nifty touched intraday high of 6,082.85 and intraday low of 6,027.25.

Meanwhile, the BSE MIDCAP closed at 6,211.37, down by 71.13 points or by 1.13 per cent, while the BSE SMLCAP ended at 6,181.8, down by 92.15 points or by 1.47 per cent.

On the Sectoral front, Banking and Realty shed 2.67 per cent and 2.6 per cent, respectively.

The Market breadth, indicating the overall health of the market, was weak. On BSE out of total shares traded 2794, shares advanced were 907 while 1748 shares declined and 139 were unchanged.

The top losers of the BSE Sensex pack were State Bank of India (Rs. 1517.55,-3.56%), Hero MotoCorp Ltd. (Rs. 1999.75,-3.43%), Sesa Sterlite Ltd. (Rs. 187.25,-3.38%), Hindalco Industries Ltd. (Rs. 108.10,-3.35%), Tata Steel Ltd. (Rs. 346.55,-3.20%), among others.

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Story first published: Thursday, January 30, 2014, 16:24 [IST]
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