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Stimulus withdrawal talks in Europe pull Sensex down 113 pts

Even the broader Nifty at the National Stock Exchange fell 25 points or 0.3 per cent and closed at 8,743 on Wednesday.

By: ENS Economic Bureau | Mumbai |
October 6, 2016 1:20:06 am
nifty, stocks rbi, rbi monetary policy, rbi rate cut, urjit patel, Sensex, Foreign Portfolio Investors, rupee, rupee-dollar, FPIs, BSE, Sensex, Nifty, NSE, News, Markets, business news, india markets, asia markets, world markets, stocks, stock price Investors were also wary of the threat of a hard Brexit. (File)

A day after the Reserve Bank of India announced 25 basis point cut in repo rates, the benchmark Sensex at the Bombay Stock Exchange fell 113 points or 0.4 per cent to close at 28,220.9 on Wednesday as profit booking ensued in the markets following a three day winning streak where it gained an aggregate of over 500 points or 1.8 per cent. The fall was also in line with weakness in the European markets over talks of withdrawal of ECB stimulus.

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Even the broader Nifty at the National Stock Exchange fell 25 points or 0.3 per cent and closed at 8,743 on Wednesday.

According to the provisional trade data at BSE, the domestic institutional investors turned net sellers (sold equities worth Rs 349.9 crore) even as the foreign institutional investors continued with their buying momentum and purchased equities worth a net of Rs 243 crore.

“Speculation over a taper in ECB’s stimulus measures has pushed the global bond yields on a rise and kept the European equity markets under vigil. As a result domestic investors are cautious,” said Vinod Nair, head of research, Geojit BNP Paribas Financial Services.

The market is also treading cautiously after US Fed’s comments that there may be a rate hike by the end of this year.

“Markets are consolidating on the expected line and traders have no option but to follow stock-specific approach. For investors, we suggest buying fundamentally sound counters gradually, keeping in mind the upcoming earning season. Jayant Manglik, President, Retail Distribution, Religare Securities Ltd.

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