Sensex sheds close to 300 pts as investors book profit
The benchmark BSE Sensex on Wednesday slumped by nearly 300 points to end the day's trade at 27,208.61 due to heavy profit-booking, chiefly in IT, oil & gas and power shares, ignoring government approving the ordinance route to implement insurance and coal reforms.business Updated: Dec 24, 2014 19:13 IST
The benchmark BSE Sensex on Wednesday slumped by nearly 300 points to end the day's trade at 27,208.61 due to heavy profit-booking, chiefly in IT, oil & gas and power shares, ignoring government approving the ordinance route to implement insurance and coal reforms.
The BSE 30-share index traded in the positive terrain in early trade but could not to keep the gains and fell sharply to 27,208.61, a fall of 297.85 points or 1.08%, due to selling pressure emerged in the last hour of day's trading.
The index had lost 195.33 points Tuesday.
The broader NSE Nifty also dipped by 92.90 points or 1.12% to end below 8,200-mark at 8,174.10.
Barring realty, all the sectoral indices closed in the red on across-the-board selling.
Among the Sensex stocks, BHEL was the worst hit at 2.52%. NTPC lost 2.35%, Gail India 2.22%, ONGC 2.16% and HDFC 2.07%.
"The selling pressure increased in the last-half an hour and pushed the Nifty index below 8200. Surprisingly, markets ignored Cabinet's approval on executive order to implement coal and insurance reforms," said Jayant Manglik, president, Retail Distribution, Religare Securities.
Brokers also attributed the selling pressure rollover of positions, short as well as long, to the next series on the last day December contract in Futures and Options.
Meanwhile, NSE recorded highest turnover in equity derivatives on Wednesday. Index options traded value was a record Rs. 453,561.76 crore, while F&O witnessed a record trade value of Rs. 566,897.54 crore.
"Outflow was seen from Pharma and IT stocks while weakness in rupee continued to weigh on banking stocks. Profit booking was seen on major banking stocks. F&O expiry and profit booking dragged the markets in late hours," WealthRays Securities' CEO & director Kiran Kumar Kavikondala said.
Meanwhile, the Union cabinet approved promulgation of the ordinance on insurance bill, re-promulgation of the coal ordinance and allowing up to 100% FDI in medical devices in the pharmaceutical sector under automatic route.