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Sensex below 19K, drops 120 points |
Mumbai: A flash 900-point crash in NSE Nifty
index and concerns over the fate of big-ticket reforms like raising the
FDI cap in insurance, snapped a four-day rally with BSE Sensex falling
120 points to end below 19K level on Friday.
After gaining around 488 points in past four sessions, the BSE
benchmark index opened higher at 19115.89 after the government on
Thursday unleashed another round of reforms.
However, the Sensex soon dropped over 200 points mirroring a
900-point fall in NSE Nifty due to a technical glitch caused by sell
orders worth Rs 650 crore executed by broker Emkay Global Financial
Services. This halted trade in cash market for 15 minutes, hitting
sentiment.
Besides, investors weighed up the fate of the big-ticket economic
reforms announced on Thursday as some legislations are likely to face
stiff opposition in the Parliament before final ratification, brokers
said.
The 30-share Sensex closed 119.69 points down, or 0.63 percent, at
18,938.46. The Nifty closed at 5,746.95, down 40.65 points or 0.70
percent.
"A healthy up move, on back of fresh reforms, was expected in markets
today. However, the initial euphoria evaporated due to confusion due of
erroneous trades on NSE near start of the day," said Milan Bavishi,
Head Research, Inventure Growth & Securities.
Importantly, the some bills need to be approved by the Parliament
before becoming a reality and notably, the main opposition party, BJP,
seems opposed to raising the FDI limits, said Edelweiss in a report.
HDFC, which lost 4.55 percent, was the worst hit amid reports that
global fund house Carlyle has sold a big chunk of its 3.7 percent stake
on Friday. Wipro, Sun Pharma, Infosys and ICICI Bank were other major
losers.
Dealers said gains in Tata Motors, Hindustan Unilever, ONGC and L&T helped the Sensex to pare losses.
Meanwhile, the rupee traded weaker at 51.81 to the dollar, from its last close of 51.74.
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