Business
Sensex closes 210 points down; healthcare stocks hit
Mumbai, April 21
Continuing on a downward
spiral for the fifth successive session, a benchmark index of the Indian
equities markets, the 30-scrip BSE Sensitive Index (Sensex), closed
Tuesday's trade 210 points or nearly one percent down as healthcare and
automobile stocks took a hit.
A day after suffering a 556-point
decline, the Sensex of the S&P Bombay Stock Exchange (BSE), which
opened at 27,860.51 points, closed the day's trade at 27,676.04 points
-- down 210.17 points or 0.75 percent from the previous day's close at
27,886.21 points.
The wider 50-scrip Nifty of the National Stock
Exchange (NSE) also closed the day's trade in the negative territory. It
was down by 70.35 points or 0.83 percent at 8,377.75 points.
The Sensex had touched a high of 27,976.93 points and a low of 27,598.21 points in the intra-day trade.
According
to analysts, the markets remained in the negative zone as an extension
of the sell-off seen in the previous trading sessions.
"It was
the fifth consecutive day when the market closed in the negative
territory. However, today's formation has shown some resilience at lower
levels. Based on said formation, we are expecting major activity in
tomorrow's trading session," said Alex Mathews, head-research, Geojit
BNP Paribas Financial Services.
Vinod Nair, head, fundamental
research, Geojit BNP Paribas Financial Services said domestic factors
continue to drive the market into further consolidation.
"Though
selling by FIIs (Foreign Institutional Investors) due to tax woes
influenced to an extent, fourth quarter results will still be the
decisive factor for market in the near-term," Nair said.
"As
fourth quarter results season progresses in the coming days, it will
provide a more clear picture on the extent of any likely downgrades of
2015-16 earnings. Therefore, in the meantime consolidation would prevail
in the market," Nair added.
The FIIs were net sellers on Monday in the cash markets segment. They sold shares worth Rs.1,506.86 crore.
In Tuesday's trade, healthy buying was observed in metal and consumer durables sectors.
However,
stocks of healthcare, automobile, oil and gas, fast moving consumer
goods (FMCG) and capital goods came under heavy selling pressure.
The
BSE S&P healthcare index plunged by 556.76 points, followed by
automobile index declined by 245.32 points, oil and gas index fell
103.83 points, FMCG index receded by 94.41 points and capital goods
index was down by 82.33 points.
However, the S&P BSE metal index was up by 14.99 points and consumer durables index was higher by 13.95 points.
On
Monday, the BSE Sensitive Index closed 556 points or nearly 2 percent
down, due to below-expected quarterly results coupled with negative
global cues.
During trading on the latter three days of the past
week, too, the Sensex closed in the negative territory and, in all, lost
599 points during Wednesday-Friday.
The Sensex had plunged by
620 points in the intra-day trade on Monday as interest rate-sensitive
stocks like capital goods, automobile and banks fell.
Fears of more retrospective tax cases impacted foreign investors' sentiments -- which also dented the rupee's value.