E-Paper
Markets track global cues, end 1% lower
MUMBAI: India’s key stock indices plunged 1% on Wednesday, tracking a weakness in global markets and as cautious investors awaited a decision on the long awaited
MUMBAI: India’s key stock indices plunged 1% on Wednesday, tracking a weakness in global markets and as cautious investors awaited a decision on the long awaited Goods and Services Tax bill.
Profit booking was also seen in some of the bluechip outperformers, which dragged the Bombay Stock Exchange’s Sensex down by 284 points to 27,697.51 points. The wider NSE Nifty ended down 78 points at 8,544.85 points.
“The market slipped due to weak global cues coupled with investors’ sentiment on the long pending GST bill . The market is floating on a premium valuation and the risk reward is low so investors are on the verge of profit booking,” said Vinod Nair, head of research at Geojit BNP Paribas Financial Services.
Stocks of consumer-facing companies had run up a bit in the last few sessions and so a correction was warranted, he felt.
Among the Sensex components, 25 stocks ended in the red.
Tata Motors tumbled 3%, ITC was down 2.9% and Maruti Suzuki slipped 2.3%.
Most other auto stocks such as M&M, Hero Moto and Bajaj Auto also ended down.
Weakness prevailed in most Asian markets with Japan’s Nikkei Stock Average declining by more than 1%. Hong Kong’s Hang Seng, Korea’s Kospi and Singapore’s Straits Times indices also fell more than 1%.
Major European indices were also trading flat or in the red.
