Sensex, Nifty close at over 1-week lows ahead of general budget
A day ahead of general budget, the BSE Sensex on Wednesday closed lower by 137 points to over one-week low of 25,444.81 as investors turned cautious on fiscal numbers projected by the Economic Survey 2013-14.business Updated: Jul 09, 2014 16:50 IST
A day ahead of general budget, the BSE Sensex on Wednesday closed lower by 137 points to over one-week low of 25,444.81 as investors turned cautious on fiscal numbers projected by the Economic Survey 2013-14.
Stock markets had opened on a strong note with the 30-share barometer touching a high of 25,683.97. However, profit booking in IT, auto, power, realty and capital goods stocks pulled the index down to a day's low of 25,364.77.
Extending losses for the second day, the Sensex closed down 137.30 points, or 0.54%, to 25,444.81, the lowest closing level since June 30. The gauge had lost 518 points in the previous session.
The broad-based Nifty of the National Stock Exchange dipped below the crucial 7,600 level by losing 38.20 points, or 0.50% to 7,585.00, a level not seen since June 27.
During the session, the Nifty shuttled between 7,650.10 and 7,551.65 points.
"After slight disappointment from the rail budget, the market prices today reflected investor's diminishing expectations for strong measures from the government in tomorrow's budget," Rakesh Goyal, Senior Vice President, Bonanza Portfolio Ltd, said.
The Economic Survey which was tabled in Parliament on Wednesday, too had its effect on the markets, he added.
The survey projected the growth in the range of 5.4 to 5.9% in 2014-15 but said that poor monsoon and disturbed external environment remain a cause for concern.
A weak trend in Asian regions and a lower opening in European market also dampened the sentiment.
In 30-BSE index components, 19 stocks declined while 11 ended with gains.
Bajaj Auto fell the most by 3.12 per cent among Sensex stocks. Coal India dropped by 2.97 per cent and Maruti Suzuki by 2.7 per cent. TCS, Wipro, Infosys, Cipla, HeroMotocrop, Larsen and Tuobro, Mahindra and Mahindra, Sunpharma, Tata Motors and Tata Power also declined.
The auto sector index suffered the most by losing 2.43%, followed by power index by 1.69%. Realty Index declined by 1.60% and Capital goods index by 1.47%.