Stocks

Sensex tanks 371 points on weak global markets

Our Bureau Mumbai | Updated on March 12, 2018

The Nifty lost 2.26 per cent (117 points) and closed at 5087.30.   -  PTI

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Fears of Greece not being able to receive funds earmarked for its bailout, due to the deadlock with its lenders, continued to haunt global markets as benchmark indices worldwide, including in India, shed their recent gains.



The Nifty lost 2.26 per cent (117 points) and closed at 5087.30 while the Sensex shed 2.15 per cent (371 points) to close at 16,863.30.



“It is difficult to understand when experts provide the same reason named global cues whenever stock markets fall,” said Mr Ashish Choudhury, a retail investor.



“If this persists very few retail investors would dare to enter the stock market.”



All the indices on the NSE and the BSE closed in the red with rate sensitive sectors such as infrastructure, realty, banking, metals and PSUs being the worst hit. Volatility was high on Monday throughout the trading session and the volatility index India Vix closed at 23.46, up 8.11 per cent.



“Disappointment over BHEL's order bookings had a dampening effect on capital goods stocks, which were major losers during the day,” said Mr Dipen Shah, Head-Fundamental Research, Kotak Securities.



Both FIIs and DIIs were net sellers of equity and sold for a net of Rs 202 crore and Rs 532 crore respectively.



Retail investors were net buyers of equity for Rs 104 crore on Monday. Analysts said that Europe would be the deciding factor for market direction in the near term. “Borrowing costs in Europe have been increasing steadily and with more countries in line for rating downgrades and default, it is only going to worsen even as they struggle to implement fiscal austerity and prop up economic growth at the same time,” said a Head of Research of an Indian brokerage.



>raghavendrarao.k@thehindu.co.in

Published on January 30, 2012

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