July 07 2020
Sensex falls on global cues, IGL rebounds
11 April 2012

The BSE Sensex dropped 150 points in early trade tracking weakness across global stocks Wednesday. At 09.20 am, the Sensex traded 128 points or 0.7% lower at 17,116 while the broader Nifty index declined 42 points to 5,201.

Hong Kong's Hang Seng index (-1.35%) and Japan's Nikkei (-1.2%) index led the losses in Asia today.

Overnight, markets in Europe and US closed with big losses. Rising bond yields in Spain indicated the fragile nature of recovery in debt ridden European countries. Unlike Greece, Spain is too big a country to rescue. 

The Dow Jones index declined 214 points or 1.6% to end at 12,716. A weak jobs report has been weighing on the Wall Street since Friday.

The Nifty index is trading close to the crucial support levels of 5,150-5,170 levels and analysts have warned that a breach of support would send the markets into bear territory.

"Markets are likely to trade sideways with a negative bias in the short term... they are likely to take support at the 200 daily moving average and move up," Somil Mehta, senior technical analyst (equity) at Sharekhan told NDTV Profit today.

All 14-sectoral indices traded lower on the BSE. High beta metal stocks (-1.4%) led the declines tracking weakness in global commodities. Mining major Sesa Goa (-2.4%) was the top loser on Nifty. Vedanta Group firm Sterlite (-2.2%) and Steel major JSPL (-1.8%) also traded lower.

Banks (-1%) and capital goods (-1.1%) also traded lower.

Only 4 of the 50 stocks traded higher on the Nifty index. Defensives saw buying interest. Drug makers like Ranbaxy (0.9%) and Cipla (0.6%) saw gains.

Gas utility firm IGL (3%) was the top traded stock, in terms of volumes, on the CNX 200 index. Shares of the company had fallen over 30% yesterday because of a government regulator's decision to slash tariffs by 60% with retrospective effect.

The market breadth was weak with only 16% stocks rising on the broader BSE 500 index.



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