Stocks: Both the indices, the BSE benchmark Sensex and NSE Nifty dropped by more than two per cent in spite of fag-end recovery in the domestic equity market following Economic Survey which came days before the Union Budget projected the economy to grow at 7-7.75 per cent in 2016-17. The Nifty50 pared some of the morning gains but was still trading at 7,029 up 59 points or 0.85 per cent. It touched a high of 7,052.90 and a low of 7,023.35 in the first 30 minutes of trade.
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The Survey, which positively influenced market sentiment, has estimated GDP growth of 7-7.75 per cent in 2016-17 as against 7.6 per cent for the current fiscal. Markets developed a hope for a good budget after the Economic Survey today sent the right chords.
“Softening of crude oil prices, political tensions and upcoming railway budget and F&O expiry dragged the markets lower”, Anand James, co-head, technical research desk with Geojit BNP Paribas Financial Services, told IANS.
On the other hand, Bajaj Auto, Hero, Lupin, Bharti and Wipro were among the losers.
On the Sensex, 19 of the 30 constituents ended higher, while overall declining issues outnumbered advancing ones 1,443 to 1,041 and 170 closed unchanged.
Major gainers that supported the key indices were Coal India, SBI, NTPC, L&T, Axis Bank, ITC Ltd, HDFC Bank, Tata Motors, HDFC Ltd, Cipla, M&M, Infosys, Adani Ports, ICICI Bank, BHEL, RIL and Hindustan Unilever.
According to provisional figures, foreigners sold shares worth Rs 1,465.68 crore yesterday.
The Economic Survey 2015-16 states that the country’s macro-economy is stable, founded on the government’s commitment to fiscal consolidation and low inflation. The decline for these indices was higher in percentage terms.
Overnight, Wall Street posted smart gains on Thursday as a 3-per cent jump in oil prices reduced fears that banks could be hit by debt defaults and investors saw opportunities after weeks of volatility. The broader indices made a mixed closing; the BSE Mid cap index ended up by 0.30%, while Small cap index declined by 0.45%.
The total turnover at BSE and NSE dropped further to Rs 10,956.21 crore and Rs 70,706.22 crore, respectively, as against the last weekend’s level of Rs 13,430.93 crore and Rs 77,649.74 crore.
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Asian markets were trading higher with the Hang Seng rising 1.7 per cent followed by Shanghai and Nikkei. Earlier in the day, China’s CSI300 index, of the largest listed companies in Shanghai and Shenzhen, climbed 1 per cent to close at 2,948.03 points.
