Markets endorse foreigners’ view against RBI’s status quo stance
1 Aug 2013 4:59 AM IST
The Bombay Stock Exchange benchmark Sensex on Tuesday plunged by 245 points, extending losses for the fifth straight session, on heavy selling in oil & gas, power, PSU and auto stocks after India’s central banking institution RBI lowered its GDP forecast and kept interest rates unchanged, amid rupee again falling below the 60-mark.
With almost six out of 10 stocks ending up as losers on the BSE, wiping out Rs 1,100 billion in investor wealth. Twelve out of 13 sectoral indices closed down amid hectic selling.
After a better start, Sensex tumbled by 244.94 poins, or 1.25 per cent to end at a nearly three-week low of 19,348.34.The gauge has now lost over 950 points in five days. Similarly, the broad-based National Stock Exchange index Nifty dipped below of crucial 5,800 level to end with a loss of 76.60 points, or 1.31 per cent, at 5,755.05.
‘The buying interest seen after the Reserve Bank of India policy turned out to be a rather trap zone because markets dived down for rest of the day. The selling was broad based with oil & gas companies getting badly impacted due to the more than 1.5 per cent rise in $/Re. The Reserve Bank of India did not announce any major steps to control the rupee,’ said Inventure Growth & Securities CMD Nagji K Rita.
With almost six out of 10 stocks ending up as losers on the BSE, wiping out Rs 1,100 billion in investor wealth. Twelve out of 13 sectoral indices closed down amid hectic selling.
After a better start, Sensex tumbled by 244.94 poins, or 1.25 per cent to end at a nearly three-week low of 19,348.34.The gauge has now lost over 950 points in five days. Similarly, the broad-based National Stock Exchange index Nifty dipped below of crucial 5,800 level to end with a loss of 76.60 points, or 1.31 per cent, at 5,755.05.
‘The buying interest seen after the Reserve Bank of India policy turned out to be a rather trap zone because markets dived down for rest of the day. The selling was broad based with oil & gas companies getting badly impacted due to the more than 1.5 per cent rise in $/Re. The Reserve Bank of India did not announce any major steps to control the rupee,’ said Inventure Growth & Securities CMD Nagji K Rita.
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