Sensex falls 425 points, Nifty settles at 10944 weighed by autos

Sensex falls 425 points, Nifty settles at 10944 weighed by autos
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Mumbai, Feb 8: Bears had a field day as benchmark indices witnessed a big plunge, especially in the last hour of trade. The Sensex cracked a little over 420 points, while the Nifty gave up the psychological 11,000-mark and ended below 10,950.
Tepid global cues, selloff in big names such as Tata Motors and Vedanta dented sentiment. Weakness was visible among all sectors, with maximum pain seen in consumption, metals, and infra companies, among others.
The day began on a lower note amid jitters in the global markets. Investors were reacting to news that US President Donald Trump was unlikely to meet Chinese Premier Xi Jinping before the March deadline. This could have raised concerns whether all was well between the nations as far as trade talks are concerned.
Through the session, markets continued to be lower, but in a narrow range. However, selling in the last hour dragged the market furthermore, pushing them to close at low points.
At the close of market hours, the Sensex was down 424.61 points or 1.15% at 36546.48, while the Nifty was down 125.80 points or 1.14% at 10943.60. The market breadth was negative as 950 shares advanced, against a decline of 1,552 shares, while 125 shares were unchanged.
Kotak Mahindra Bank, Bharti Airtel, and Bharti Infratel were the top gainers, while Tata Motors, Vedanta, and Indiabulls Housing lost the most.
Stocks in the News
Tata Motors’ shares cracked over 18 percent as investors reacted to poor results by the company.
Mahindra & Mahindra posted earnings that came below expectations. The stock was near 52-week low.
Developments around related party transactions pressurized the stock of Raymond, but a clarification by the management later boosted the stock.
Reliance Communications and other Anil Ambani Group stocks staged a recovery amid a blame by the company against L&T Finance and Edelweiss.
Other losers included Vedanta, Tata Steel, NTPC, ONGC, L&T, M&M, Coal India, Maruti, PowerGrid, Axis Bank, ITC and HDFC, dropping up to 5.75 per cent. On the other hand, Kotak Bank, Bharti Airtel, HCL Tech, Bajaj Finance and Hero MotoCorp rose up to 0.95 per cent.
The BSE Metal index plunged 3.42 per cent, while the auto gauge shed 3.37 per cent. Sectorally, FMCG, banking and pharma indices also ended in the red. Realty was the only gainer.
Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net of Rs 418.01 crore Thursday, and domestic institutional investors (DIIs) were net buyers to the tune of Rs 294.11 crore, provisional data available with BSE showed.
On the global front, fears of an economic slowdown resurfaced after US President Donald Trump said he does not expect to meet his Chinese counterpart Xi Jinping before the March 1 deadline in trade war negotiations between the two superpowers.
A top White House adviser on Thursday said Washington and Beijing were still a “sizeable distance” apart in the trade talks, and no date has been set for a meeting between the countries’ leaders. Dow Jones Industrial Average ended 0.87 per cent lower on Thursday.
Elsewhere in Asia, Japan’s Nikkei cracked 2.19 per cent, while Korea’s Kospi dropped 1.20 per cent and Hong Kong’s Hang Seng slipped 0.16 per cent.
In the Eurozone, Frankfurt’s DAX was down 0.10 per cent, while Paris CAC 40 rose 0.12 per cent in late morning deals. London’s FTSE was up 0.19 per cent.
The rupee, meanwhile, appreciated 32 paise against the US dollar to 71.13 intra-day. The benchmark Brent crude futures rose 0.28 per cent to USD 61.80 per barrel.