Finally, BSE Sensex closed at 20,425 down 180 points, while NSE Nifty closed at 6059 down 56 points over the previous close.
After staging a stellar show in the previous trading session, the Indian equity market took a breather on Tuesday as selling pressure in the banking, oil and gas, FMCG, realty and the consumer durables stocks dragged the benchmark indices to wipe out over half of Monday’s gains.
The Sensex and the Nifty had rallied on Monday on hopes that the Iran nuclear deal would lead to increased supplies and a sustained decline in oil prices. However, crude oil prices bounce back and the oil marketing companies also fell on account of profit taking.
The rupee which was seen strengthening against the US Dollar in the past three trading sessions witnessed a sudden bounce back. The Indian unit weakened against the green back and was trading around 62.50 levels as compared to intra-day high of 62.25.
The BSE banking index was the top loser among the BSE sectoral indices, specially the PSU banks were under selling pressure. Amar Ambani, Head of Research at IIFL said, “PSU banks had run ahead of their fundamentals over the past month with the market discounting that worst of asset quality issues were behind. We continue to believe that stress is percolating to lower levels in the economy and therefore impaired assets creation rate may not moderate meaningfully in coming quarters.”
Bucking the negative trend were the auto, power and the capital goods stocks. However, the Mid-Cap and the Small-Cap index gained by half a percent each.
After staging a stellar show in the previous trading session, the Indian equity market took a breather on Tuesday as selling pressure in the banking, oil and gas, FMCG, realty and the consumer durables stocks dragged the benchmark indices to wipe out over half of Monday’s gains.
The Sensex and the Nifty had rallied on Monday on hopes that the Iran nuclear deal would lead to increased supplies and a sustained decline in oil prices. However, crude oil prices bounce back and the oil marketing companies also fell on account of profit taking.
The rupee which was seen strengthening against the US Dollar in the past three trading sessions witnessed a sudden bounce back. The Indian unit weakened against the green back and was trading around 62.50 levels as compared to intra-day high of 62.25.
The BSE banking index was the top loser among the BSE sectoral indices, specially the PSU banks were under selling pressure. Amar Ambani, Head of Research at IIFL said, “PSU banks had run ahead of their fundamentals over the past month with the market discounting that worst of asset quality issues were behind. We continue to believe that stress is percolating to lower levels in the economy and therefore impaired assets creation rate may not moderate meaningfully in coming quarters.”
Bucking the negative trend were the auto, power and the capital goods stocks. However, the Mid-Cap and the Small-Cap index gained by half a percent each.
No comments:
Post a Comment