Despite ‘reform’ ordinances, Sensex dips 298 pts
The benchmark BSE Sensex on Wednesday slumped by 297.85 points to 27,208.61 due to heavy profit-booking, chiefly in IT, oil & gas and power shares, ignoring government approving the ordinance route to insurance and coal FDI. The BSE 30-share index traded in the positive terrain in early trade but could not to keep the gains and fell sharply o 27,208.61, a fall of 297.85 points or 1.08 per cent, due to selling pressure emerged in the last hour of day's trading.
The broader NSE Nifty also dipped by 92.90 points or 1.12 per cent 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 per cent. NTPC lost 2.35 per cent, Gail India 2.22 per cent, ONGC 2.16 per cent and HDFC 2.07 per cent.
"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 today. 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' said CEO & Director Kiran Kumar Kavikondala.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 444.93 crore on Tuesday, as per provisional data. Other big Sensex losers were Dr Reddy's Lab (2.06 per cent), Infosys (1.88 per cent), Coal India (1.68 per cent), Bajaj Auto (1.49 per cent), Hindalco (1.47 per cent), HDFC Bank (1.43 per cent) and TCS (1.43 per cent).
Among sectoral indices, IT fell by 1.38 per cent, followed by Oil&Gas 1.36 per cent, Teck 1.07 per cent, FMCG 1.02 per cent, healthcare 1.01 per cent and Power 0.88 per cent. Realty rose by 1.14