Sensex, Nifty down more than 1% over US fiscal woes

Sensex, Nifty down more than 1% over US fiscal woes

Sensex, Nifty down more than 1% over US fiscal woes

Key benchmark indices on Friday slumped by more than a percent as stocks fell across the globe after an American Republican leaders' proposal on US fiscal crunch failed to get enough support yesterday, leading to an uncertainty on automatic spending cuts and tax increases set to start from January 2013.

Analysts pointed out profit-taking as another reason for the day's fall in D-Street as the barometer index of BSE reached its lowest closing level in more than a week, while the 50-unit S&P CNX Nifty reached its three-week low. BSE Mid-Cap and Small-Cap index dropped more than one percent each.

Market breadth was weak and cigarette maker ITC reversed intra-day losses in late trade, while Bharti Airtel shares fell after CBI filed charges as part of a probe into alleged corruption in allocation of mobile airwaves.  Another index heavyweight Reliance Industries (RIL) also extended losses in late trade.

India Infoline's Research Head Amar Ambani said: “The market appears to be in a sort of uncertainty with some kind of year-end fatigue. Global cues also were not supportive as fiscal cliff issues continue to overshadow any other economic news. In the coming curtailed week, volatility is likely to escalate due to F&O expiry.” 

The benchmark index at BSE - Sensex- lost 211.92 points or 1.09 percent to close at 19,242 points, lowest since December 13, 2012. 

The 50-unit S&P CNX Nifty at NSE lost 68.70 points or 1.16 percent to settle at 5,847.70, its lowest closing level since  November 29, 2012. The index hit high of 5,888 and a low of 5,841.65 in intra-day trade.

The market breadth, indicating the overall health of the market, was weak with as many as 1,939 shares on BSE declined while 979 shares rose. The turnover on the BSE amounted to Rs 2,214 crore, lower than Rs 2,423 crore on Thursday.