Stalemate on Economic Bills depresses markets, BSE Sensex down 104 Points

Mumbai, Dec 9: Reduced chances of key economic legislation getting passed in the winter session of parliament, coupled with a slowdown in the Chinese economy and falling commodity prices led a barometer index to shed 104 points during mid-afternoon trade session on Wednesday.

Initially, both the bellwether indices of the Indian equity markets opened on a negative note following their Asian peers.

Domestic cues like the parliament logjam which has reduced the chances of the goods and services tax (GST) bill getting passed during the winter session, eroded investors confidence. Should the bill not pass in this session it will miss its intended roll-out date of April 1, 2016.

Furthermore, foreign investors’ continued selling of equities in the Indian markets ahead of a likely US rate hike depressed investors.

In addition, oil and gas and energy companies stocks stayed on their downward trajectory due to a dip in global crude oil prices.

Besides equities, rupee remained under pressure.

The barometer 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) shed 104 points or 0.41 percent during the mid-afternoon trade session.

Similarly, the wider 50-scrip Nifty of the National Stock Exchange (NSE) was trading in the red. It was lower by 37.45 points or 0.49 percent at 7,664.25 points.

The Sensex of the S&P Bombay Stock Exchange (BSE), which opened at 25,299.34 points, was trading at 25,206.72 points (at 1.45 p.m.)– down 103.61 points or 0.41 percent from the previous day’s close at 25,310.33 points.

The Sensex so far touched a high of 25,316.95 points and a low of 25,165.16 points during the intra-day trade. (IANS)