INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Across board selling led by auto and bank stocks, pushed 30-share Sensex lower by 363 points in Wednesday's trade
The index settled day at 35,892, down 1 per cent.
Weakness in markets world over, along with a sharp drop in domestic currency dented
investor sentiment back home
World shares started 2019 on a downbeat note, oil prices and bond yields slid, and Japanese yen strengthened on Wednesday as data from
China to France confirmed picture of a global economic slowdown, Reuters reported.
The domestic currency dropped 70 paise against US dollar
in today's session to hit an intraday low of 70.10 on account of FII outflows.
A slowdown in manufacturing activity for month of December
along with poor GST numbers didn't bode well for markets either
Indian manufacturing activity expanded at a slower pace in December as growth in new orders and output waned, despite factories cutting
their prices, a private survey showed on Wednesday, according to a Reuters report.
NSE counterpart Nifty too faced a similar fate and shed
118 points or 1.08 per cent to settle at 10,793.
Among Sensex stocks, only six managed to end higher in today's session, with Sun Pharma
gaining most by 1.66 per cent
Meanwhile, Vedanta, Tata Steel, MM, Tata Motors and Maruti were among top losers, shedding up to 4 per cent.
Midcap and smallcap indices on
BSE too fell in line with Sensex, ending session 1.26 per cent and 0.74 per cent lower, respectively.
Among BSE sectoral indices, metal
index cracked most and ended day 3.45 per cent lower on weak Chinese data
This was first contraction in manufacturing activity for index since May 2017
Global brokerage CLSA slashed targets and downgraded five metals and mining companies, citing weak Chinese demand
Auto was another sector that witnessed a weak session and plunged 3 per cent on account of weak auto sale numbers for month of December
Eicher Motors plunged most by 8.71 per cent
Barring teck and informational technology, all sectors ended in red.
Expert takeDomestic market consolidated in expectation of weak Q3FY19
results while weak GST collection and lower auto numbers supported fear
Globally, weak China factory data and risk of further slowdown in world economy impacted global market which was weak
Consolidation was broad in Indian market but Metals Auto index were worst performers.- Vinod Nair, Head of Research, Geojit Financial
ServicesPost a decent upmove in last few trading sessions, equity benchmark indices declined led by negative global cues and profit taking
Amongst global markets, Asian markets ended on a negative note and European indices were trading lower.There has been some encouraging
developments on global front with Trump signalling meaningful progress on trade talks with China, thereby easing tensions between two
However, we continue to remain cautiously optimistic on Indian markets as global headwinds in form of economic slowdown would keep markets
Jayant Manglik, President, Religare Broking
