Sebi order, global cues drag equity indices lower, Nifty50 goes sub-10k

Mumbai, Aug 8: A surprise regulatory directive by Sebi, along with broadly negative global cues dragged the key Indian equity indices — the BSE Sensex and the NSE Nifty50 — lower on Tuesday. According to market observers, heavy selling pressure was witnessed in banking, oil and gas, and healthcare stocks The NSE Nifty50, which closed above the psychologically important 10,000-point mark for the first time on July 26, slipped to below that level by the day’s close. On July 25, the Nifty climbed the 10,000-point mark for the first time in its almost 22-year history.

The wider Nifty50 of the tiol Stock Exchange (NSE) closed at 9,978.55 points — down 78.85 points or 0.78 per cent — from its previous session’s close. The 30-scrip Sensitive Index (Sensex) of the BSE, which opened at 32,341.05 points, closed at 32,014.19 points — down 259.48 points, or 0.80 per cent — from its previous close at 32,273.67 points. The Sensex touched a high of 32,354.77 points and a low of 31,915.20 points during the intra-day trade. The BSE market breadth was skewed in favour of bears — with 2,020 declines and 566 advances. On Monday, the benchmark indices traded on a flat-to-negative note.

The Nifty50 fell by 9 points or 0.09 per cent at close at 10,057.40 points, while the Sensex closed at 32,273.67 points — down 51.74 points, or 0.16 per cent. “Markets ended sharply lower on Tuesday as selling intensified. Negative global cues and weakness in heavyweight stocks like ITC, Reliance Industries and bank stocks contributed to the fall in the Nifty,” Deepak Jasani, Head of Retail Research, HDFC Securities, told IANS. “Market sentiment was also impacted after market regulator Sebi yesterday, 7 August 2017 imposed trading restrictions on 162 listed entities identified as shell companies.” On the currency front, the rupee strengthened by 17 paise to close at 63.63 to a US dollar from its previous close at 63.80. In investments, provisiol data with the exchanges showed that foreign institutiol investors (FIIs) invested Rs 1,539.82 crore, while domestic institutiol investors (DIIs) purchased stocks worth Rs 798.55 crore.

“Indian equity shares witnessed a sudden sell-off on Tuesday after a positive opening. Except for metal stocks, all other sectoral indices witnessed sell-off,” Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS. “Concerns about valuations also weighed on markets. Investors booked profit in recent out-performers. Overseas, Asian shares ended mixed as disappointing Chinese trade data clouded an otherwise bright outlook.” (IANS)