Sensex down 111 points amid weak Asian cues and euro zone fears

Sensex down 111 points amid weak Asian cues and euro zone fears

Sensex down 111 points amid weak Asian cues and euro zone fears

The 30-share benchmark touched 15,801.01 on weak ending in the Asian region, but higher openings in Europe helped trim the losses. The Sensex has lost 904 points in last two sessions.

Consumer durables, metal, refinery, capital goods and power sector suffered the most following a retreat in commodity and equity prices worldwide.

Trading sentiment remained bearish on fears that failure to combat the Greek-led turmoil might have cascading effect on slowing down the global economy as European policy makers face mounting pressure to prevent the debt crisis spreading.

The broad-based National Stock Exchange index Nifty dipped below the 4,800 mark, before ending 32.35 points lower at 4,835.40.

Raw material producers led by base-metal company stocks were major losers. Sterlite Industries, a top copper producer dropped to 28-month low by losing 4.40 per cent and Hindalco Industries, the aluminium maker - which also controls Atlanta- based Novelis - fell 3.80 per cent to 2-year low.

Reliance Industries, a most heaviest on the Sensex fell by 1.50 per cent and Coal India, dropped by 5.46 per cent.

Consumer durables index tumbled the most by 4.95 per cent to 6,319.43, followed by metal, down 2.87 per cent to 11,182.96. The oil and gas index lost 1.56 per cent to 8,134.31 and capital goods by 1.39 per cent to 11,009.11.

However, gains in IT and Tech stocks on weak rupee, saved the market. The software services exporters get more than 80 per cent revenues from US and Euro.

Analysts said investors are expecting weak second quarter performance by some key companies following high input costs and slow down in the economy.

Besides RIL, HDFC Bank, L&T, Coal India, ITC, Sterlite Ind, Hindalco, Hero Honda, Jindal Steel, Bajaj Auto, ONGC and HDFC suffered a setback and weighed down the Sensex.
However, a marked rise in ICICI Bank, Bharti Airtel, Infosys, TCS and Wipro cushioned the fall.

Globally, Asian stocks ended weak on sustained fears of European debt worries. Key indices in China, Hong Kong, Japan, Singapore, South Korea and Taiwan ended down between 1.48 per cent and 2.64 per cent.

European markets, however, were firm in the afternoon trade on hopes of early bail-out plan for Greece. The DAX, the CAC and the FTSE were trading higher between 1.25 per cent and 3.4 per cent.

Overall, 21 of the 30 index-based scrips ended in the red while others closed in the green. Coal India was the top loser from the Sensex pack and was down by 5.46 per cent. Other losers were Sterlite Ind (4.40 pc), Hindalco (3.80 pc), Hero MotoCo (2.84 pc), Jindal Steel (2.61 pc), Bajaj Auto (2.45 pc), Tata Power (1.80 pc), HDFC Bank (1.64 pc), L&T (1.62 pc), NTPC (1.62 pc), ONGC (1.20 pc) and ITC (1.15 pc).

From the sectoral indices, BSE-Consumer Durables tumbled by 4.95 per cent, Metal (2.87 pc), PSU (1.77 pc), Oil&Gas (1.56 pc) and Capital Goods (1.39 pc).

Total market breadth was sharply weak as 1,996 stocks closed with losses, while only 786 that ended with gains. The total turnover was higher at Rs 2,922.96 crore from Rs 2,644.44 crore last Friday. 

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