Chennai, India (BBN) – The Sensex tumbled over 453 points — its biggest single session fall in one year — to close at 33,149.35 on widespread selling triggered by widening fiscal deficit concerns.
India’s fiscal deficit rose to 96.1 per cent of the full-year target by the end of October. It was marginally lower at 79.3 per cent of the Budget Estimate a year ago, reports The Hindu Business Line.
Investors also remained subdued ahead of September quarter GDP data to be released later today.
Squaring-up of positions by participants following end of November series contracts in the derivatives segment and a weak trend in other Asian markets also weighed on the sentiment.
The Sensex, after a gap down opening at 33,542.50, continued its slide to touch a low of 33,108.72. It finally settled 453.41 points or 1.35 per cent lower at 33,149.35. This was its biggest single session fall since November 15 last year, when it had lost 514.19 points.
The broader NSE Nifty, after cracking below the key 10,300-mark, touched a low of 10,211.25, before finally ending 134.75 points, or 1.30 per cent, down at 10,226.55. This was its biggest single day fall since September 27 this year, when it had lost 135.75 points.
Barring realty and consumer durables, all other BSE sectoral indices ended in the negative zone. Among them, banking index fell 1.88 per cent, followed by metal 1.1 per cent, PSU 1.09 per cent and auto 0.98 per cent.
Major Sensex losers were Kotak Bank (-2.63%), State Bank of India (-2.54%), Reliance (-2.42%), Axis Bank (-2.39%) and Tata Motors (-2.32%), while the only two gainers were Dr Reddy’s (+0.45%) and NTPC (+0.36%).
PSU banks seem to be under pressure as the likelihood of interest rates falling further from current levels has been postponed, Jasani said.
GDP DATA, F&O EXPIRY
Domestically, investors were wary ahead of the GDP data, with analysts expecting growth to have picked up as businesses started to overcome teething troubles after the launch of a national sales tax and the ban on high-value banknotes last year.
Some volatility was also anticipated ahead of the expiry of monthly derivative contracts at the end of the session.
“Markets are at quite a high level in terms of valuations; so some amount of correction is normal to expect,” said Deepak Jasani, head of retail research at HDFC Securities
As per provisional data, foreign portfolio investors (FPIs) sold shares worth Rs. 859.27 crore yesterday. Domestic institutional investors (DIIs) bought equities worth Rs. 771.07 crore.
Asian shares fell on Thursday, weighed down by a plunge in high-flying technology shares, a move that some see as a healthy correction after a strong rally but others believe may herald the peak of a “super cycle” that has been boosting the sector.
MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.5 per cent, with technology bellwether Samsung Electronics falling 2.9 per cent to two-month lows. Japan’s Nikkei dipped 0.1 per cent, led by a 2.0 per cent fall in electronic machinery makers.
In the US, the Nasdaq Composite dropped 1.27 per cent as investors shifted to financials and other sectors even as the S&P 500 was almost flat and the Dow Jones Industrial Average gained 0.44 per cent.