The stock market fell for the third consecutive day, Sensex lost 542 points, Nifty also in loss
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In other Asian markets, Kospi of South Korea, Nikkei of Japan and Hangseng of Hong Kong were in loss while China’s Shanghai Composite was in profit. European markets ended with losses in early trade. The US market was in losses on Wednesday after Fitch Ratings downgraded the credit rating of the US government. Foreign institutional investors sold shares worth Rs 1,877.84 crore on Wednesday, according to stock market data. Global oil benchmark Brent crude declined 0.46 per cent to USD 82.82 per barrel.
The domestic stock market declined for the third consecutive day on Thursday and the BSE Sensex lost 542 points. At the same time, the Nifty of the National Stock Exchange fell below the 19,400 mark. The market continued to decline due to weak trend in global markets and continued withdrawal of capital by foreign institutional investors. The 30-share BSE Sensex closed at a four-week low of 65,240.68, down 542.10 points, or 0.82 per cent. It had gone down to 819.7 points during trading. The National Stock Exchange’s Nifty also closed at 19,381.65 points, down 144.90 points, or 0.74 percent. It remained in the range of 19,537.65 to 19,296.45 points during the business. At one point the Nifty had come below the 19,300 mark. In these three days, the Sensex has come down by about 1,287 points, or 2.16 percent, while the Nifty has come down by 372 points, or 2.42 percent.
Vinod Nair, Head of Research, Geojit Financial Services, said, “With bond yields rising and dollar index strengthening, global markets are still reeling from the US credit rating downgrade.” It has downgraded the rating of the US government, citing growth in debt and deterioration in governance standards at the central, state and local levels over two decades. The rating agency has downgraded the credit rating by one notch to ‘AA+’ from ‘AAA’. Titan was down 2.56 per cent in the Sensex basket. The company on Wednesday said its consolidated net profit declined 4.3 per cent to Rs 756 crore in the June quarter. After that the stock of the company has come down. Apart from this, Bajaj Finserv, ICICI Bank, Nestle, UltraTech Cement, Bajaj Finance, Maruti, Tata Consultancy Services, IndusInd Bank and State Bank of India were major losers.
On the other hand Infosys, JSW Steel, NTPC and PowerGrid remained in profit. Of the 30 Sensex scrips, 23 gained while seven advanced. Nair said, “Domestic PMI beat expectations of the services market and reached a 13-year high as orders increased.” Services sector growth in India has reached a 13-year high in July. Services sector activity picked up pace in July on a significant recovery in demand and pick-up in international sales. The seasonally adjusted S&P Global India Services PMI business activity index rose to 62.3 in July from 58.5 in June. This shows that there has been the fastest increase in production since June 2010. BSE Smallcap index gained 0.23 percent and Midcap 0.14 percent.
Religare Broking Ltd. Ajit Mishra, senior vice-president (technical research), said, “The recent fall in global markets is putting pressure on the local market and we expect the negative trend to continue.” Among other Asian markets, the Kospi of South Korea, Japan’s Nikkei and Hong Kong’s Hangseng were in losses while China’s Shanghai Composite was in profit. European markets ended with losses in early trade. The US market was in losses on Wednesday after Fitch Ratings downgraded the credit rating of the US government. Foreign institutional investors sold shares worth Rs 1,877.84 crore on Wednesday, according to stock market data. Global oil benchmark Brent crude declined 0.46 per cent to USD 82.82 per barrel.
Disclaimer:IndiaTheNews has not edited this news. This news has been published from PTI-language feed.
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