Sensex plunges by 470 points to hit a fresh near 8 months low
The benchmark BSE Sensex plunged by 470 points on Thursday to hit a fresh near eight months low of 26,370.98 and Nifty cracked 8,000-level as dealers preferred to trim their positions on concerns over below normal monsoon and slow credit growth.business Updated: Jun 11, 2015 18:57 IST
The benchmark BSE Sensex plunged by 470 points on Thursday to hit a fresh near eight months low of 26,370.98 and Nifty cracked 8,000-level as dealers preferred to trim their positions on concerns over below normal monsoon and slow credit growth.
Market participants ignored the sharp fall in current account deficit and positive global cues while remaining cautious ahead of macroeconomic data -- IIP for April and CPI for May, traders said.
On Wednesday, RBI had said that Current Account Deficit fell sharply to its lowest level in a year at USD 1.3 billion or 0.2% of GDP in the fourth quarter of 2014-15.
"Low visibility of capex recovery and slow credit growth are...reasons for investors lightening their overweight stance on Indian equities," said Hitesh Agrawal - head research, Reliance Securities.
Traders added that investors preferred to book profits in stocks that rebounded in previous session. Sensex had jumped 359.25 points on value-buying after MSCI deferred inclusion of China A shares in its index keeping India weightage intact.
The 30-share gauge resumed strong on Thursday to hit the 27,000-mark and touched day's high of 27,000.14.
However on emergence of profit-booking it slumped to 26,348.93 before closing 469.52 points or 1.75% down at 26,370.98.
Sensex had ended at 26,429.85 on October 20, 2014.
The broader NSE Nifty slipped below the important 8,000 and finally settled 159.10 points or 1.96% lower at 7,965.35. Intra-day, it moved between 8,163.05 and 7,958.25.
"The recent disappointing Q4 earnings season, coupled with the somber management commentaries, has cast a shadow over the extent of recovery possible in the current fiscal," added Agrawal.
Stocks of Tata Power suffered the most among Sensex pack by falling 4.88%, followed by Tata Motors 3.61%.
Asian stocks ended higher following overnight gains in US markets. Key benchmark indices China, Hongkong, Japan, Singapore, South Korea and Taiwan rose by 0.26 to 1,68%.