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Sensex nosedives 336 points ahead of crucial GDP data

Analysts expect Asia’s third-largest economy to post a dismal rate of economic growth.

, ETMarkets.com|
Nov 29, 2019, 04.22 PM IST
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BSE’s 30-share Sensex closed 0.82 per cent or 336.36 points lower at 40,793.81 points, while NSE’s 50-share Nifty shed 0.78 per cent or 95.10 points to close at 12,056.05 points.

Mumbai: Bears revisited the Indian bourses as benchmark equity index Sensex snapped a two-session winning streak and closed 336 points lower as market sentiment was jittery ahead of September quarter GDP data due later in the day. Weakness in the world markets added to investor woes.

Analysts expect Asia’s third-largest economy to post a dismal rate of economic growth for the second quarter of the current fiscal year. The country’s largest bank by asset size, State Bank of India predicted the growth rate of 4.2 per cent, attributing it to low automobile sales, deceleration in air traffic movements, flattening of core sector growth and declining investment in construction and infrastructure.

BSE’s 30-share Sensex closed 0.82 per cent or 336.36 points lower at 40,793.81 points, while NSE’s 50-share Nifty shed 0.78 per cent or 95.10 points to close at 12,056.05 points.

Earlier in the day, Sensex had fallen as much as 1.13 per cent or 465.99 points to 40,664.18 while Nifty was as much as 1.1 per cent or 133.75 points down at 12,017.40.

Markets at a glance:
Market breadth tilted in favour of bears as declining shares beat advancing shares in the ratio of 1.1:1 on the BSE.
BSE midcap and smallcap indices fared better and closed 0.16 per cent and 0.47 per cent higher, respectively.
Among sectoral indices, BSE Energy and BSE Metals were the top losers. They shed 1.46 per cent and 1.30 per cent respectively.

Only three Sensex stocks managed to close in the green. Energy-to-telecom conglomerate Reliance Industries (RIL) retreated a day after crossing the Rs 10 lakh crore market capitalization mark and contributed the most (89.25 points) to Sensex ‘s losses as it shed 1.84 per cent. Private lender ICICI Bank (down 45.12 points) followed next, as it declined 1.40 per cent.

Rival YES Bank shed 2.50 per cent ahead of its announcement on fund raising. Dish TV India tumbled 14 per cent in late trade.

Analysts’ take:
"Profit booking ahead of economic data and selling pressure in Asian peers due to risk of retaliation from China add volatility in the market. The recent rally has lifted the market to supreme valuation which may limit the headroom of key indices to perform well in the short-term. Consequently, investors are likely to shift focus for quality mid & small caps, which are likely to out-perform in the near term,” -- Vinod Nair, Head of Research at Geojit Financial Services.
“Markets will react to the GDP numbers in early trade on Monday. The recent feud between the US and China over Hong Kong could induce volatility in the global markets. Amid all, we reiterate our bullish view and suggest continuing with stock-specific trading approach,” -- Ajit Mishra, VP - Research, Religare Broking.

Global stocks:
Asian and European shares slipped on Friday, knocking a global stock index off its path to hitting an all-time peak as investors turned cautious, fearing a new US law backing Hong Kong protesters could torpedo efforts to end the US-China trade war, Reuters reported.

MSCI All Country world index which tracks shares in 49 countries, was down 0.39 per cent at 548.48, less than 0.4 per cent away from its all-time peak hit in January last year before the start of the US-China trade war.

MSCI's broadest index of Asia-Pacific shares outside Japan fell more than 1 per cent. The pan-European STOXX 600 index was down 0.4 per cent at 0806 GMT.

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