Sensex falls to 3-month low; down 220 points as commodities drag

Metalg

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posted on 8 years ago — updated on 1 second ago

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Moreover, fresh concerns over passing of key reform bills like GST dampened the sentiment. Besides, sustained foreign funds outflows and weakness in the rupee added to the rout.

Mumbai: The benchmark BSE Sensex slipped for a fifth straight session on Tuesday to close at a three-month low of 25,310.33 by tumbling about 220 points as oil dropping to multi-year lows hit domestic commodity stocks. Moreover, fresh concerns over passing of key reform bills like GST dampened the sentiment. Besides, sustained foreign funds outflows and weakness in the rupee added to the rout.

Globally, oil struggled at a seven-year low as OPEC decided not to slash output. Consequently, BSE oil&gas index plunged by 2.14 per cent. After shuttling between 25,256.79 and 25,542.47, the 30-share Sensex ended the day down by 219.78 points or 0.86 per cent at over a three-month low of 25,310.33.

The index had closed at 24,893.81 points on September 7. The broad-based NSE Nifty after dipping below the crucial 7,700-mark to touch a low of 7,685.45, settled 63.70 points or 0.82 per cent down at 7,701.70. With a slump of over 5 per cent, GAIL was the biggest loser among Sensex and Nifty stocks as the company mulls shutting down of coal-based power plants near metro cities.

Other laggards included Vedanta, Hindalco, Dr Reddy's, ONGC, Tata Steel, Coal India, BHEL, L&T, RIL, SBI, Lupin, Wipro, Lupin, M&M, HDFC, Hero MotoCorp, HUL, Sun Pharma, ICICI Bank, Axis Bank, Bharti Airtel, Cipla and Maruti Suzuki. However, shares of Tata Motors, Bajaj Auto, ITC and TCS ended in the positive zone. Sectorwise, the BSE realty index tanked the most, down 3.69 per cent, followed by metal 3.25 per cent, oil&gas 2.14 per cent, PSU 2.11 per cent and power 1.80 per cent.

In broader markets, the small-cap index shed 1.33 per cent and mid-cap slipped 1.17 per cent. Analysts said renewed bickering between the government and the main opposition party Congress over National Herald case could jeopardies the prospects of GST bill in the Winter Session of Parliament.

Global cues were also not helpful as stocks took a beating after Chinese data on imports and exports reinforced worries about the health of the world's number two economy at the same time as US considers raising interest rates. Asian stocks ended down while European markets were trading lower in their morning session on worse-than-expected Chinese data.