Sensex ended 126 points lower at 40,675
Sensex ended 126 points lower at 40,675

Sensex falls over 100 points, Nifty gives up 12,000; midcaps suffer steep losses

  • Banking, auto, metal and pharma stocks led the decline
  • Yes Bank shares slumped 7% today

Indian stocks fell today amid volatile trade, tracking weak global markets. The Sensex ended 126 points lower at 40,675 while Nifty settled at 11,994, down 0.45%. Banking, auto, metal and pharma stocks led the decline today. Yes Bank shares slumped 7% while Tata Steel fell 5% and Vedanta declined 3%.

Among banking stocks, ICICI Bank lost 0.4%, HDFC Bank 0.8%, SBI 0.7% while Axis Bank and IndusInd Bank fell between 1.5% and 2%.

Some buying was seen in IT stocks, with TCS gaining 1.5% and Infosys 0.8%.

The broader markets suffered steep losses today. The BSE midcap index fell nearly 1% while smallcap index declined 0.75%.

Ajit Mishra, VP - Research, Religare Broking Ltd.

The Indian equity indices continued its downward trend largely led by weak global cues. The Nifty index traded with a negative bias throughout the session and ended lower by 54 points at 11,994 (down 0.5%). Both the broader market indices - BSE Mid-cap and BSE Small-cap too ended lower by 1% and 0.7% respectively. Barring IT and Realty , all the other indices exhibited selling pressure with Telecom, Metal and Power being the top losers.

Going ahead, the RBI will announce its rate decision on Thursday.

Investor sentiments in the near-term are likely to be muted given the weak GDP data, says Ajit Mishra of Religare Broking. "Further, RBI monetary policy on December 05 will be crucial as at least 25 bps rate cut is expected as the central bank is likely to place economic growth on the forefront despite higher inflation," he said.

Suvodeep Rakshit, vice president and senior economist at Kotak Institutional Equities, also expects a rate cut by the RBI later this week. "We believe that given the transient nature of food prices, and the sustained decline in core inflation, the monetary policy committee will likely continue to focus on the growth outlook. We maintain our call for 25 bps reduction in the repo rate in the December policy to continue providing support to growth," he said.

Asian markets were weak today, following an overnight tumble on Wall Street. Sentiment was hit after the US reimposed tariffs on Argentina and Brazil, threatened steep levies against France and warned China of new measures if ongoing talks are not successful. (With Agency Inputs)