Sensex Tanks 250 Pts, Nifty Below 7,850 on Weak Data, Global Cues
Dalal Street opens on a note of caution, dragged by weakness in banks and capital goods.
Domestic equity markets started on the back foot as poor economic data and weak global cues weighed on investor sentiment. The Bombay Stock Exchange’s Sensex plunged nearly 250 points while the 50-stock Nifty slipped below the 7,850 mark.
Data showed that factory output was almost stagnant for the month of March and retail inflation accelerated in April.
The broader markets - mid and small cap stocks - fared better than the large caps.
Banks and capital goods sectors were the biggest laggards on the BSE.
HUL and Bharti Airtel were the biggest losers on the Sensex, followed by Dr Reddy’s, ICICI Bank, ONGC, Tata Steel and L&T. Tata Motors, Adani Ports and Asian Paints were the only Sensex stocks in the green in early trade.
Weak Economic Data Also Weighed on the Rupee
The rupee depreciated by 17 paise to 66.79 against the US dollar in early trade due to increased demand for the American currency from importers amid a lower opening of the domestic equity market.
Besides, growth in industrial production plunging to 0.1 percent in March and retail inflation soared to 5.39 percent in April, also put pressure on the rupee, forex dealers said. However, the US dollar’s weakness against some currencies overseas capped the losses.
Asian Markets Low on BoJ Stimulus Expectations
Asian markets fell after a rocky performance on Wall Street, while the yen nursed losses as traders wagered the Bank of Japan will add to its massive stimulus before too long.
Major US stock indexes closed mixed on Thursday, with the Nasdaq Composite down 0.49 percent as Apple shares skidded to a two-year low on concerns about iPhone demand.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1 percent, and was track for a weekly drop of the same magnitude, its third straight week of declines.
Hong Kong shares slipped 0.9 percent, poised for a 1.9 percent decline for the week.
Chinese shares started the day in positive territory but quickly retreated, with the CSI 300 down 0.2 percent and the Shanghai Composite losing 0.1 percent. They are on track to end the week lower, the former by 1.4 percent and the latter by 2.7 percent, after being hit earlier in the week by fears that Beijing may begin to taper its stimulus plans due to concerns about excessive debt.
(With inputs from agencies)
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