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HindustanTimes Tue,21 Oct 2014

After budget-eve euphoria, thelet-down: Sensex plunges 348 pts

HT Correspondent, Hindustan Times  Mumbai, July 11, 2014
First Published: 10:37 IST(11/7/2014) | Last Updated: 23:45 IST(11/7/2014)

The benchmark Sensex on Friday plunged 348 points, or 1.4% to end at 25,024.35, its biggest weekly loss since December 2011, due to continued profit-booking in stocks that had rallied prior to the Budget on expectations of big-bang announcements and debt concerns in Portugal.

Global markets were hit after financial health worries at a major Portuguese bank spooked markets worldwide on Thursday and the US Federal Reserve signalled an end of its bong-buying programme by October.

The broader Nifty also fell 108 points, or 1.4%, to 7,459.60.

“Markets are disappointed on the fiscal consolidation front. The budget did not speak anything about rationalisation of subsidies, which was widely expected by most market players,” said Rakesh Goyal, senior vice-president, Bonanza Portfolio.

Major Sensex losers included BHEL (down 8.1%), Hindalco (down 5.5%) and SBI (down 4.7%).

All sectoral indices ended in the red except for those in defensive sectors such as IT, FMCG and healthcare.

“If the bond-buying programme does end, some amount of liquidity is bound to fly out of India. Foreign institutional investors, who have made a lot of money in India in the recent rally, would want to park some of their funds back in the US markets,” said Avinnash Gorakssakar, head of research at Mintdirect.com

With budget out of the way, analysts said the focus would now shift to global markets, progress on monsoon, and earnings next week.


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