BSE Sensex trades 104 Points down; Healthcare Stocks hit
Continuing on a downward spiral for the fifth successive session, a benchmark index of the Indian equities markets, the 30-scrip BSE Sensex, closed Tuesday’s trade 210 points or nearly one percent down as healthcare and automobile stocks took a hit.
A day after suffering a 556-point decline, the Sensex of the S&P Bombay Stock Exchange (BSE), which opened at 27,860.51 points, closed the day’s trade at 27,676.04 points — down 210.17 points or 0.75 percent from the previous day’s close at 27,886.21 points.
The wider 50-scrip Nifty of the National Stock Exchange (NSE) also closed the day’s trade in the negative territory. It was down by 70.35 points or 0.83 percent at 8,377.75 points.
The BSE Sensex had touched a high of 27,976.93 points and a low of 27,598.21 points in the intra-day trade.
According to analysts, the markets remained in the negative zone as an extension of the sell-off seen in the previous trading sessions.
“It was the fifth consecutive day when the market closed in the negative territory. However, today’s formation has shown some resilience at lower levels. Based on said formation, we are expecting major activity in tomorrow’s trading session,” said Alex Mathews, head-research, Geojit BNP Paribas Financial Services.
Vinod Nair, head, fundamental research, Geojit BNP Paribas Financial Services said domestic factors continue to drive the market into further consolidation.
“Though selling by FIIs (Foreign Institutional Investors) due to tax woes influenced to an extent, fourth quarter results will still be the decisive factor for market in the near-term,” Nair said.
“As fourth quarter results season progresses in the coming days, it will provide a more clear picture on the extent of any likely downgrades of 2015-16 earnings. Therefore, in the meantime consolidation would prevail in the market,” Nair added.
The FIIs were net sellers on Monday in the cash markets segment. They sold shares worth Rs.1,506.86 crore. In Tuesday’s trade, healthy buying was observed in metal and consumer durables sectors. However, stocks of healthcare, automobile, oil and gas, fast moving consumer goods (FMCG) and capital goods came under heavy selling pressure.
The BSE S&P healthcare index plunged by 556.76 points, followed by automobile index declined by 245.32 points, oil and gas index fell 103.83 points, FMCG index receded by 94.41 points and capital goods index was down by 82.33 points. However, the S&P BSE metal index was up by 14.99 points and consumer durables index was higher by 13.95 points.
On Monday, the BSE Sensex closed 556 points or nearly 2 percent down, due to below-expected quarterly results coupled with negative global cues. During trading on the latter three days of the past week, too, the Sensex closed in the negative territory and, in all, lost 599 points during Wednesday-Friday.
The Sensex had plunged by 620 points in the intra-day trade on Monday as interest rate-sensitive stocks like capital goods, automobile and banks fell. Fears of more retrospective tax cases impacted foreign investors’ sentiments — which also dented the rupee’s value.(IANS)