Sensex tanks 455 points

Our Bureau Updated - March 12, 2018 at 05:29 PM.

The equity markets were caught in a firm bear grip on Friday with both the benchmark indices suffering their biggest single day percentage fall in 14 months.

The fall was on the back of poor GDP figures, weak rupee, subdued global cues and dampened hopes of a rate cut from RBI.

The BSE Sensex tumbled 455.10 points or 2.25 per cent to end the day at 19,760.30, while the NSE Nifty slid 2.26 per cent or 138.10 points to settle at 5985.95. Banking, realty and oil and gas sectors were the worst hit.

The rupee too weakened to a 11-month low to close at Rs 56.50 to a dollar.

This followed RBI Governor D. Subbarao’s statement on Thursday on retail inflation being still high and several upside risks to inflation remaining intact.

More fall likely

“The fall was coming and the latest GDP figure was just the trigger. Given the way the markets have rallied in the recent past, a correction was in order. We expect further downside in the near term,” said Jagannadham Thunuguntla, Strategist & Head of Research, SMC Global Securities.

In addition, marketmen believed that with the Rs 13,500-crore worth of ‘offer for sales’ hitting the market on Monday, the deadline for meeting SEBI’s minimum public shareholding norms, more liquidity is likely to be taken away from the markets.

‘monsoon, only hope’

Alex Mathews, Head Research, Geojit BNP Paribas Financial Services, said: “Earnings of a lot of small and mid-caps have also disappointed the markets and much of the recent rally has been in frontline stocks.

“A 10-per cent decline in derivative contract rollovers for June indicates poor risk appetite among investors. The upcoming monsoon is the only hope to limit the downside and bring down inflation.”

>manisha.jha@thehindu.co.in

Published on May 31, 2013 11:12