Sensex tumbles to two-month low; down 296 points on capital outflows

Agencies Mumbai | Updated on October 07, 2014 Published on October 07, 2014

Metals, healthcare, capital goods and consumer durables major losers

The BSE benchmark Sensex today plunged 296 points to close at nearly two-month low due to widespread losses in metal, healthcare, consumer durables and capital goods sector stocks on capital outflows and retail investors ahead of earnings season amid a mixed trend overseas.

After opening 137 points lower, the 30-share index continued its slide to touch the day’s low of 26,250.24 before ending the day at almost two-month low of 26,271.97, a level not seen since August 14, registering a steep fall of 296.02 points or 1.11 per cent.

The gauge had lost 62.52 points in the previous session on Octrober 1. Stock markets remained closed on October 2, 3 and 6 for Gandhi Jayanti, Dussehra and Id-Ul-Zuha, respectively.

FII/FPIs pulled out Rs 63.24 crore from domestic markets on October 1, according to exchange data.

Similarly, the broad-based NSE Nifty closed down by 93.15 points or 1.17 per cent at 7,852.40 after shuttling between 7,943.05 and 7,842.70.

Brokers said the sentiment dampened on foreign capital outflows and offloading of positions by retail investors ahead of the earnings season, with Infosys posting results later this week.

Of the 30 Sensex shares, 23 closed lower led by Hindalco (down 4.35 per cent), Sesa Sterlite (4.32 per cent) and Cipla (3.67 per cent), while NTPC, Gail and Tata Motors remained major gainers.

Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net Rs 63.24 crore last Wednesday as per the provisional data released by the stock exchanges.

Sectorwise, BSE metal index suffered the most by falling 2.65 per cent, followed by healthcare by 1.85 per cent.

Captial goods index by 1.78 per cent, Consumer durables index by 1.72 per cent, Realy index 1.27 per cent, PSU index 1.20 per cent and Banking index 0.87 per cent were the other significant losers.

Global markets

Globally, a mixed closing on the other Asian markets and a lower opening of the European stocks as a report showed German industrial production contracted the most in more than five years, also negatively impacted sentiment.

European shares fell in early trade on Tuesday after German industrial output fell far more than expected, but losses were limited by gains in mining shares after Rio Tinto rejected a merger approach from rival Glencore.

At 0755 GMT, the FTSEurofirst 300 index of top European shares was down 0.7 per cent at 1,341.44 points. The benchmark index had gained 1.1 per cent over the past two sessions.

"Volatility has surged again in Europe, but there's no clear trend in terms of direction," Aurel BGC analyst Gerard Sagnier said. "It's better to move to the sidelines for now. Investors need to be patient, the bullish trend will resume at some point."

Asian shares rose on Tuesday, while the dollar languished after investors locked in some gains on its recent rally.

MSCI's broadest index of Asia-Pacific shares outside Japan was up about 0.3 per cent in late afternoon trade, after wobbling between positive and negative territory as it took its cues from a choppy, losing session on Wall Street overnight.

Japan's Nikkei stock average ended down 0.7 percent, after the Bank of Japan offered a bleaker view on factory output. The BOJ maintained its massive asset buying programme, as widely expected.

Hong Kong shares finished higher for a third day in a row on Tuesday, with investor confidence recovering as pro-democracy demonstrations eased in the wake of a meeting between protest leaders and government officials.

The Hang Seng Index rose 0.5 percent to 23,422.52 points. The China Enterprises Index of the leading offshore Chinese listings in Hong Kong was 0.6 percent higher.

Published on October 07, 2014

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