ZCZC
BCN-20
INDIA-MARKETS-SENSEX
Sensex tanks over 200 points in early trade
Mumbai, Aug 1, 2019 (BSS/PTI) – Equity benchmark BSE Sensex on Thursday
tanked over 200 points in early trade on concerns over weak core industrial
growth data and sustained foreign fund outflows.
The 30-share index was trading 205.69 points or 0.55 per cent lower at
37,275.43; and the broader Nifty fell 16.15 points or 0.44 per cent to
11,069.25.
In the Sensex pack, Vedanta took the biggest hit, trading 2.92 per cent
lower, followed by Tech Mahindra, Yes Bank, Tata Motors and Tata steel.
However, Power Grid, IndusInd Bank, ICICI Bank, Asian Paint, Maruti and HCL
Tech were trading in the green.
In the previous session, Sensex gained 83.88 points or 0.22 per cent to end
at 37,481.12. The broader NSE Nifty ended 32.60 points or 0.29 per cent up at
11,118.00.
The markets continue to witness persistent outflow of foreign funds from
equities.
Foreign investors sold shares worth Rs 1,497.07 crore on a net basis on
Wednesday, as per provisional data with stock exchanges.
Growth of eight core industries dropped to 0.2 per cent in June, mainly due
to contraction in oil-related sectors as well as cement production, according
to official data.
The government on Wednesday also revised downwards the growth rate of these
eight sectors for May to 4.3 per cent from the earlier estimate of 5.1 per
cent.
Overall investor sentiment was weak after the government on Wednesday
released the core industries output growth numbers, which dropped to 0.2 per
cent in June, experts said.
Meanwhile, the government’s fiscal deficit touched Rs 4.32 lakh crore for
the June quarter, which is 61.4 per cent of the budget estimate for 2019-20
fiscal.
The US Federal Reserve reduced the benchmark lending rate by 25 basis
points to 2.0-2.25 per cent on Wednesday for the first time in more than a
decade.
Elsewhere in Asia, Shanghai Composite Index and Hang Seng were trading
lower, while Nikkei and Kospi were in the green in their respective early
sessions.
US stocks ended on a negative note on Wednesday.
Meanwhile, the rupee declined by 32 paise to 69.12 against the US dollar in
morning trade.
The global oil benchmark Brent crude futures rose 0.70 per cent to 65.17
per barrel.
BSS/AFP/HR/1155