New Delhi: Markets traded the lowest near closing as selling pressure continued almost across the board, dragging the Bombay Stock Exchange Sensex down by 1.9% on Monday.
Negative sentiment in the market conceived from weak global cues and bearish investors sentiments before the local holidays on Tuesday and Wednesday.
Markets began the day 1% lower on the back of mixed Asian markets on worries of insufficient stimulus and fate of auto industry in the US. The 30-share BSE index failed to recover and ended 165.42 points down at 8,160.40 and 50-share NSE Nifty ended at 2,573.15 or 47 points less.
Realty and banking suffered huge sell-off lowering them by 3.2% and 2.7% respectively. Realty stocks fell due to insignificant fall in interest rates during the time of liquidity problem.
Banking industry still has to transfer benefits of recent rate cuts by the RBI and stockholders are also wary of financial stocks due to troubles in the global financial sector. Other frontline losers were FMCG, technology, IT, capital goods and metal.
Auto index was the only exception riding high on increase in vehicle sales in the month of February. Maruti Suzuki gained by 0.25% to Rs650.70 and Mahindra and Mahindra rose by 0.22% to Rs317.60.
Satyam surged by 15.78% to Rs48.80, on the NSE as the government-appointed board laid down bidding qualifications today inviting interested companies to bid for 51% stake in the software-outsourcing firm.
Ranbaxy Laboratories traded lower by 4.46% to Rs135 even after the pharma received an approval from US Food and Drug Administration for its new cardiovascular drug Ramipril. The same FDA had accused Ranbaxy for data falsification two weeks back.
Sterlite Industries fell 2.24% to Rs244.45 on acquisition of the US-based bankrupt copper miner Asarco for $1.7 billion, 35% lower than its previous bid.
Jaiprakash Associates was on top of the BSE losers list, falling by 5.32% to Rs65.85, along with State Bank of India by 4.68% to Rs896.80, DLF Ltd by 4.54% to Rs138.70, Sun Pharmaceuticals by 4.20% to Rs978.65 and Reliance Communications by 4.03% to Rs132.25.
Meanwhile, on the global front, European markets also opened weak dragged by Lloyds and HSBC stocks sell-off. London’s FTSE hits it’s 6-year low as bank stocks fell. In Asia Japan’s Nikkei fell 1.2% to a 26-year closing low on automaker losses amid concerns about the fate of General Motors.
The domestic market will remain closed on Tuesday and Wednesday for religious festivals resuming trade on Thursday.