Mumbai - It was a gloomy day on the bourses today, with markets suffering losses due to selloff across sectors. Leading the selloff were banking and financial sector stocks followed by automobiles, metals and pharma sectors, told Mr. Aamar Deo Singh, Head Advisory, Angel Broking Ltd.
He told that, the S&P BSE Sensex index today fell by 2.07% - or 708 points to touch 33,538.37 points, whereas the NSE Nifty 50 benchmark declined to 9,902, falling by 2.12 percent.
A selloff in the financial stocks deepened in late afternoon deals, while selling pressure also emerged in sectors such as automobiles, metals and pharmaceuticals.
The Nifty Bank index declined by 2.72 percent whereas Nifty PSE declined by 1.51 percent. Top gainers on NSE included PNB Housing (5%), DishTV (4.96%), Future Retail (4.98%) IndusInd Bank (4.71%). Top losers on NSE included, Idea (13.36%) Bharti Infratel (9.41%), Zee Entertainment (7.30%), SBI (5.62%).
Supreme Court booster for Telecom sector
Supreme Court today in a major ruling said that that the department of telecommunications (DoT), was wrong in its demand for Rs 4 trillion worth of adjusted gross revenue dues from the telecom operators in the country.
The court asked the government body to consider the withdrawal of that demand. The AGR demand by DoT has caused a major trouble for the Indian telecom Industry that is already sandwiched between lower revenue and high tax demands by the government.
The Supreme Court statement, however, did not boost the telecom stocks, as they registered heavy losses in today’s trading session.
Global Markets :
It was an equally bad day for the global markets asstocks in Asia lost their 10-day positive streak and ended on a negative note. Hong Kong's Hang Seng index was down 0.44 percent and South Korea's KOSPI index was down by 0.27 percent.
European markets also showed signs of fatigue as investors doubt the prospects of economic recovery in their economies.
MSCI’s 49-country index of world stocks lost 0.75 per cent in its largest daily loss in five weeks.In commodities, oil prices registered a decline due to record build-up in US crude inventories.
The negative outlook for the US economy from the US Federal Reserve statement also led to crash in crude oil prices. According to US FED, world’s biggest economy would contract by 6.5 percent this year.
The Central Bank has promised to maintain bond purchases at the current pace of $80 billion/ month in Treasuries and $40 billion/month in agency and mortgage backed securities.
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