Mumbai: The Bombay Stock Exchange benchmark Sensex Thursday fell by 110 points as market participants sold shares of companies mainly in real estate, banking, power and capital goods sectors.
The Sensex, which had surged to 18,008.71 at early stage, tumbled to a low of 17,417.63 points before ending with a loss of 109.93 points at 17,648.71.
Similarly, the National Stock Exchange index, Nifty, moved between 5,251.65 and 5,071.15 points before ending with a loss of 30.15 points at 5,137.45.
The major fall in the market was driven by realty, banking, power and capital goods sectors.
The realty index plunged the most by 2.73 per cent at 9,871.06, followed by banking index that fell by 2.13 per cent at 10,713.91, power index 2.13 per cent at 3,741.21 and capital goods index 1.43 per cent at 16,387.70.
Midcap sector suffered a loss of 62.44 points to close at 7,766.62, while smallcap index fell by 22.44 points at 10,124.42.
The Bombay Stock Exchange benchmark Sensex fell by 423 points at 1030 hours as investors squared off positions at the last day of derivatives contract amid the US Federal Reserve’s announcement Wednesday to cut rates by 50 basis points.
Bears tightened their grip on the market despite another rate cut by the Fed that raised hopes of increased capital inflows into equity. The Federal had slashed key rates by 75 basis points in a surprise move on 22 January.
Weakness in the market was also attributed to winding up of arbitrary positions by Foreign Institutional Investors (FIIs), which have been continuously covering shorts in the Futures & Options, while pulling out from equity for the past few days.
The 30-share BSE barometer was quoted at 17,417.63 points, down 423.01 points from previous close of 17,758.64.
The broad-based Nifty of the National Stock Exchange, too fell by 84.60 points to 5,083.00 at 10.30 am from last close of 5,167.60.
Asian markets were narrowly mixed during morning trading.
The BSE benchmark Sensex moved up moderately by 82 Thursday on emergence of buying by domestic funds and general investors as the US Federal Reserve cut its base federal funds rate by a half-point Wednesday.
The 30-share index, Sensex, which lost 333 points Wednesday, recovered 82 points to 17,840.64 in the first five minutes of trade.
The National Stock Exchange’s index, Nifty, rose by 27.50 points to 5,195.10 as some of the heavy-weight stocks gained fresh ground.
The trading sentiment boosted by a better trend in overseas market, as the US Federal Reserve trimmed its base federal funds rate by half-point today to 3.0 per cent.
The action came a week after an emergency cut of 0.75 percentage points in the face of a global market rout amid concerns the US economy was headed toward recession.