Post Session- Sensex snaps 4-day rally amid weak global trend Analysis for Feb 20, 2014

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The key domestic benchmarks ended on a bearish note today as the Sensex snapped four-day gains, shedding more than 180 points dragged down by losses in banking and PSU stocks mirroring a weak trend in Asian and European markets which fell on concerns over the world economy after China"s manufacturing shrank, the IMF warned over downside risks to the global economy and the US Federal Reserve signaled that QE reduction will continue despite recent weakness in the world"s biggest economy. Profit booking by traders in blue chip stocks, after recent gains, also weighed on domestic benchmarks.

Asian stocks fell after China"s manufacturing slumped this month, while the International Monetary Fund (IMF) warned over the downside risks to the global economy amid prolonged threat of emerging market turmoil and deflation in the Euro area. China"s Shanghai Composite ended lower after manufacturing shrank at the fastest pace in seven months, raising fears over a deepening slowdown in the world"s second biggest economy. The HSBC China Manufacturing PMI fell to 48.3 in February from 49.5 in January, with a reading below 50 signaling contraction. Hang Seng ended lower amid weak China demand outlook and concerns over the US economy following a slump in housing starts. Japan"s Nikkei 225 tumbled as the yen gained while the country"s trade deficit ballooned to a record high of 2.79 trillion yen in January 2014, clouding economic outlook.

The BSE SENSEX closed at 20, 536.64, down by 186.33 points or by 0.9 per cent and the NSE Nifty ended at 6,091.45, down by 61.3 points or by 1 per cent.

The BSE Sensex touched intraday high of 20,662.66 and intraday low of 20,522.04 The NSE Nifty touched intraday high of 6,129.1 and intraday low of 6,086.45.

Meanwhile, the BSE MIDCAP closed at 6,377.02, up by 0.08 points, while the BSE SMLCAP ended at 6,361.85, down by 10.35 points or by 0.16 per cent.

On the Sectoral front, Banking and PSU slumped 1.63 per cent and 1.05 per cent, respectively.

The Market breadth, indicating the overall health of the market, was weak. On BSE out of total shares traded 2916, shares advanced were 1240 while 1519 shares declined and 157 were unchanged.

The top losers of the BSE Sensex pack were ICICI Bank Ltd. (Rs. 1008.45,-2.15%), Bharti Airtel Ltd. (Rs. 296.85,-1.98%), Tata Steel Ltd. (Rs. 367.30,-1.80%), State Bank of India (Rs. 1481.50,-1.80%), Housing Development Finance Corporation Ltd. (Rs. 792.50,-1.63%), among others.

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Story first published: Thursday, February 20, 2014, 16:24 [IST]
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