Sensex falls sharply, it stocks lead decline – ndtvprofit. com

BSE Sensex and Nifty fell sharply on Friday, tracking weak global markets. The Sensex fell over 300 points while Nifty breached the 7,750 levels at day’s lows.

Here are top 10 developments:

1) Auto, IT, capital goods, and FMCG stocks led the decline today. TCS slumped nearly 3 per cent while HCL Tech was down 1.5 per cent. HUL, ITC, L&T, Maruti Suzuki, and Tata Motors were down between 1 per cent and 2 per cent. Fund manager Sandip Sabharwal in a tweet said: “Fall

in technology stocks on H-1B visa issues has traditionally always been a buying opportunity.”

( Read: H-1B Visa Reform Bill Introduced In US Senate)

2) Oil & gas stocks were also under strong pressure following a slump in global crude prices, which fell close to 6-year lows. Cairn India and ONGC slumped 3-4 per cent.

3) Some buying was seen in select banking and metal stocks. Tata Steel, Axis Bank and Kotak Mahindra Bank gained nearly 1 per cent.

4) Coal India shares were up nearly 3 per cent ahead of its earnings announcement later in the day.

5) Besides weak global markets, domestic stocks were impacted by rising prices for some food product pushed up India’s retail inflation to a four-month high of 5 per cent in October. Further hurting the sentiment, industrial production also grew at a slower than expected pace of 3.6 per cent in September.

6) In broader markets, InterGlobe Aviation, which runs IndiGo airlines, continued its stellar run since its listing on Tuesday. The stocks gained nearly 5 per cent on being added to the FTSE All World Index.

7) In another index level rejig, Cadila, Tata Motors DVR, Maruti Suzuki and Ashok Leyland will be added to MSCI index from December. Tata Motors DVR prices were up over 4 per cent.

8) Some analysts expect further near-term losses in India and Nifty could retest the September lows of 7,500 levels. “Domestic earnings in second quarter were not encouraging and commentary for the third quarter (is) also not looking up. The continuing foreign outflows in anticipation of the Fed move will keep markets under pressure,” said Daljeet Kohli, head of research of IndiaNivesh Securities.

9) Foreign institutional investors have been net sellers of Indian equities for $273.87 million in November so far, data from the exchanges showed.

10) In other Asian markets, Japan’s Nikkei fell 0.50 per cent while markets in China lost over 1 per cent amid a tumble in global commodity prices. Overnight, the Wall Street suffered its worst session in over a month on Thursday as lower commodity prices weighed on energy and materials stocks and comments by a Federal Reserve policymaker hinted at an approaching interest-rate hike. (With Agency Inputs)