Post Session: Markets bleed in red amid global rout; Senses ends 248 pts lower Analysis for Dec 04, 2015

Posted By: Religare
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The Indian equities ended lower for the third straight session on Friday, tracking bearish cues from Asian stocks, as traders brace for a maiden US interest rate hike in nearly a decade, while the scale of additional stimulus unveiled by the European Central Bank (ECB) fell short of market expectations, souring risk taking appetite.

Extending losses for third day, the 30-share BSE SENSEX closed at 25638.11, down by 248.51 points or by 0.96 per cent, and then NSE Nifty ended at 7781.9, down by 82.25 points or by 1.05 per cent.

In the bearish trade, the BSE Sensex touched an intraday high of 25810.06 and intraday low of 25623.71, while the NSE Nifty touched high and low of 7821.4 and 7775.7, respectively.

In a similar trend, the broader market also settled in negative terrain, with the BSE MIDCAP closing at 10935.11, down by 115.77 points or by 1.05 per cent, while the BSE SMLCAP ended at 11557.52, down by 74.91 points or by 0.64 per cent.

On the corporate front, shares of Sun Pharmaceutical Industries rose nearly 4 per cent on Bombay Stock Exchange (BSE) after the drug maker announced that it has received US FDA approval for generic Gleevec.

Fed Chair Janet Yellen on Thursday signaled that conditions for raising borrowing costs in the world"s biggest economy had been achieved, bolstering the case for a lift-off in interest rates by the Fed at its upcoming two-day policy meet on December 15-16. A hike in US interest rates may dim the appeal of risky emerging market assets, fueling foreign fund outflows. Meanwhile, the ECB said that it will extend its bond buying program by six months until at least March 2017 at the current pace of 60 billion euros a month and will broaden its asset purchases by including local and regional debt. The deposit rate was cut by 10 basis points to -0.3 per cent. Further, tepid Indian services data which showed that the sector expanded at the slowest pace in five months in November 2015 has poured cold water on the hopes of a sustained recovery in Asia"s third biggest economy, and continued to weigh on sentiment at Dalal Street.

Leading the decline on the D-Street were Mahindra & Mahindra Ltd. (Rs. 1316.00,-2.42%), Housing Development Finance Corporation Ltd. (Rs. 1171.95,-2.42%), NTPC Ltd. (Rs. 130.80,-2.28%), ITC Ltd. (Rs. 335.60,-2.19%), ICICI Bank Ltd. (Rs. 261.45,-1.71%), among others.

However, some buying were witnessed in blue chip stocks, such as Sun Pharmaceutical Industries Ltd. (Rs. 756.10,+4.02%), Bharti Airtel Ltd. (Rs. 321.25,+0.48%), Coal India Ltd. (Rs. 335.05,+0.16%), Tata Steel Ltd. (Rs. 240.20,+0.02%), among others.

The Market breadth, indicating the overall strength of the market, was weak. On BSE out of total shares traded 3060, shares advanced were 1251 while 1626 shares declined and 183 were unchanged.

Among the global peers, Asian stocks ended bleeding in red as the scale of further ECB stimulus left traders disappointed. China"s Shanghai Composite slipped nearly 1 per cent as financial shares declined before the resumption of IPOs after a five-month freeze. Hang Seng tumbled over 1 per cent and Japan"s Nikkei 225 slid nearly 2 per cent as a stronger yen curbed the lure for exporter stocks.

Story first published: Friday, December 4, 2015, 17:12 [IST]
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