Sensex drops for 2nd day, down 84 pts as export growth slows
The BSE Sensex was trading down at 118.89 points or 0.56% in the pre-noon trade Wednesday. The Sensex touched a high of 21,200.51 points and a low of 21,110.62 points during the trade so far.business Updated: Dec 11, 2013 17:18 IST
The benchmark Sensex fell for the second day on Wednesday and dropped nearly 84 points on weak global cues and concerns over export growth deceleration in November, amid cautious trading ahead of industrial production and inflation data tomorrow.
The Sensex, which had lost 71 points in the previous session, fell further by 83.85 points, or 0.39% to 21,171.41, after touching the day's low of 21,069.45.
Overall, 19 constituents including Tata Motors, L&T and SBI of the 30-share index fell. NTPC and HDFC were among the 10 gainers. Cipla was unchanged.
Sentiment dampened after export growth decelerated to 5.9% YoY in November, following four consecutive months of double-digit growth. Indecision was also seen ahead of the November retail inflation and October IIP, said traders.
Brokers said the market was in an 'overbought' position in past few sessions and that lured investors to book profits.
The Sensex had climbed to an all-time high of 21,484.74 intra-day on December 9, after a good showing by main opposition BJP party in Assembly elections in four states.
Investors also reduced their holdings before policy meetings by the RBI and the US Fed Open Market Committee next week, brokers added.
The broad-based National Stock Exchange index Nifty lost 24.95 points, or 0.39%, to end at 6,307.90. Also, SX40 index of MCX Stock Exchange fell 46.69 points to 12,569.51.
Sectorally, the BSE Capital goods sector index suffered the most by losing 1.39%, followed by auto index (down 1.05%), oil and gas index (0.86%) and metal index (0.63%). FMCG index was the lone gainer.
A weakening trend in the Asian region and lower opening in Europe further influenced the domestic market.
Yesterday, reports said US employers advertised the most job openings in more than five years in October, and the number of people quitting also reached a five-year high. This aided bets that a US budget agreement will boost prospects for tapering the Federal Reserve's stimulus programme.
Budget negotiators have unveiled a pact to ease automatic spending cuts by around $60 billion over two years and cut the US deficit by around $23 billion