INSUBCONTINENT EXCLUSIVE:
The bears continued to hijack the proceedings on Dalal Street on Friday, dragging equity benchmarks Sensex and Nifty over 1 per cent in
The Nifty slipped below the 10,400 mark, as 38 of its constituents dropped up to 14 per cent
Indiabulls Housing Finance and YES Bank led the index losers.
At 11 hours (IST), the 50-share index was down 141 points while the 30-share
BSE Sensex fell 412 points to 34,366.
Going by the buzz on Dalal Street, here is a list of five factors that are dragging the market.
Fed
worries: Subdued global cuesWeak global cues weighed market sentiment
meeting, which were viewed as hawkish
In overnight trade Dow closed 1.27 per cent, or 327 points, down at 25,379 on October 18.
Foreign money outflowForeign investors have pulled
out over Rs 20,000 crore from the domestic markets so far in October amid an unabated fall in the rupee and rising crude oil prices and a
spike in US treasury yields
Double whammy of trade deficit rupee fallTraders were cautious after SBI Economic Research said the rupee depreciation has neither helped
improve exports nor slowed imports, leading to an incremental trade deficit of $4 billion in the first half of the financial year
Exports entered the negative zone after five months, contracting 2.15 per cent in September to $27.95 billion due to a dip in shipments in
key sectors, including engineering and gems jewellery segments, even as trade deficit narrowed to a five-month low
Imports grew 10.45 per cent in September to $41.9 billion, according to commerce ministry data released Monday
The local currency depreciated over 15 per cent on a year-to-date basis till October 17.
Selling in heavyweightsMarket participants appeared
disappointed with second quarter earnings of oil-to-telecom behemoth Reliance Industries (RIL)
The scrip slipping 5 per cent in morning trade to Rs 1,091
Among others Infosys (down 3 per cent) and YES Bank (7 per cent) also lost significant weight
HDFC, ITC and Asian Paints capped some of the downside
On Wednesday, RIL posted a record quarterly profit for Q2FY19, helped by strong profit from its petrochemicals and telecom businesses
However, its gross refining margin, or profit earned on each barrel of crude processed, fell to a three-and-a-half-year low at $9.50 a
barrel.
Domestic growth worriesSentiments were dampened after CLSA signalled an impact on economic growth due to current tightness in the
credit market, though the impact is unlikely to remain way beyond the next two quarters, notwithstanding the cautious view on the domestic
