Falling for a fifth straight session, the benchmark BSE Sensex declined by 378.14 points on Tuesday to close at a six-week low of 25,743.26 as domestic shares fell on the last day of Samvat year 2071 post elections results in Bihar and growing concerns that the US Federal Reserve could raise interest rates next month.
Bears continued to hammer indices for a second day post outcome of Bihar elections as investors see possible roadblock to key economic reforms.
The Sensex has dropped by 1,043.97 points or 3.89 per cent from the closing on Samvat 2070 (October 22, 2014). The NSE Nifty too registered a fall of 212.55 points or 2.65 per cent. In a Samvat year, this is the third worst return given by Sensex in a decade.
The Sensex resumed lower at 26,094.09 and fell further to 25,709.23 before settling 378.14 points or 1.45 per cent down at 25,743.26, its weakest closing since September 28. The index fell 469.19 points in the previous four days.
Out of the 30-share Sensex, 23 scrips ended lower. Reliance Industries, owner of the world’s largest oil-refining complex, slid the most in 11 weeks. Bharat Heavy Electricals, the nation’s biggest power-equipment maker, fell to an 18-month low. Dr Reddy’s Laboratories extended losses over a five-day period to 23 per cent.
The MSCI Asia Pacific Index declined 0.7 per cent amid anxiety that the era of near-zero US borrowing costs will come to an end next month and China’s slower-than-estimated inflation signalled more weakness in the world’s second-biggest economy.
Bucking the trend, auto shares were in demand on strong performance during the ongoing festive season and robust sale numbers on Dhanteras on Monday.
Prominent gainers were Maruti Suzuki, Hero MotoCorp, Bajaj Auto and M&M that gained in the range of 1.13-1.68 per cent.
Small-cap and mid-cap indices too dropped between 0.81 per cent and 1.68 per cent, respectively, due to selling pressure from retail investors.
Among the BSE sectoral indices, oil&gas fell by 3.77 per cent followed by metal 2.78 per cent, healthcare 2.53 per cent, realty 2.42 per cent, IT 1.78 per cent, power 1.77 per cent, teck 1.71 per cent, capital goods 1.29 per cent and FMCG 1.22 per cent, while auto moved up by 0.10 per cent.
Meanwhile, shares of IndiGo’s parent InterGlobe Aviation debuted at Rs 856, a premium of nearly 12 per cent over the issue price of Rs 765 per share.
There will be a special muhurat trading session on both stock exchanges on Wednesday evening between 1745 hrs and 1845 hrs on account of Diwali.
Key indices in China, Hong Kong, South Korea and Taiwan fell by 0.18 per cent to 1.44 per cent, while Japan’s Nikkei firmed up by 0.15 per cent. Singapore market remained closed.
European markets were lower as key indices in France, Germany and the UK moved down between 0.09 per cent to 0.20 per cent. International investors bought $240 million of domestic stocks on November 6, taking this year’s inflows to $4.4 billion.
With inputs from PTI