Sensex down 111 pts amid weak Asian cues and euro zone fears
Mumbai: After dipping below the 16k level today, the BSE Sensex recovered some lost ground but still closed 111 points down at 16,051.10, tracking declines in Asian equities, amid concerns that policy makers might fail to tame Europe debt crisis.
The 30-share benchmark touched 15,801.01 on weak ending in the Asian region, but higher openings in Europe helped trim the losses. The Sensex has lost 904 points in last two sessions.
Consumer durables, metal, refinery, capital goods and power sector suffered the most following a retreat in commodity and equity prices worldwide.
Trading sentiment remained bearish on fears that failure to combat the Greek-led turmoil might have cascading effect on slowing down the global economy as European policy makers face mounting pressure to prevent the debt crisis spreading.
The broad-based National Stock Exchange index Nifty dipped below the 4,800 mark, before ending 32.35 points lower at 4,835.40.
Raw material producers led by base-metal company stocks were major losers. Sterlite Industries, a top copper producer dropped to 28-month low by losing 4.4 percent and Hindalco Industries, the aluminium maker – which also controls Atlanta- based Novelis – fell 3.8 percent to 2-year low.
Reliance Industries, a most heaviest on the Sensex fell by 1.5 percent and Coal India, dropped by 5.46 percent.
Consumer durables index tumbled the most by 4.95 percent to 6,319.43, followed by metal, down 2.87 percent to 11,182.96. The oil and gas index lost 1.56 percent to 8,134.31 and capital goods by 1.39 percent to 11,009.11.
However, gains in IT and Tech stocks on weak rupee, saved the market. The software services exporters get more than 80 percent revenues from US and Euro.