Sensex drops for 2nd day, down 84 pts as export growth slows

Sensex drops for 2nd day, down 84 pts as export growth slows

The benchmark Sensex fell for the second day today and dropped nearly 84 points on weak global cues and concerns over export growth deceleration in November, amid cautious trading ahead of industrial production and inflation data tomorrow.

The Sensex, which had lost 71 points in the previous session, fell further by 83.85 points, or 0.39 per cent to 21,171.41, after touching the day's low of 21,069.45.

Overall, 19 constituents including Tata Motors, L&T and SBI of the 30-share index fell. NTPC and HDFC were among the 10 gainers. Cipla was unchanged.

Sentiment dampened after export growth decelerated to 5.9 per cent YoY in November, following four consecutive months of double-digit growth. Indecision was also seen ahead of the November retail inflation and October IIP, said traders.

Brokers said the market was in an 'overbought' position in past few sessions and that lured investors to book profits.

The Sensex had climbed to an all-time high of 21,484.74 intra-day on December 9, after a good showing by main opposition BJP party in Assembly elections in four states.

Investors also reduced their holdings before policy meetings by the RBI and the U.S. Fed Open Market Committee next week, brokers added.

The broad-based National Stock Exchange index Nifty lost 24.95 points, or 0.39 per cent, to end at 6,307.90. Also, SX40 index of MCX Stock Exchange fell 46.69 points to 12,569.51.

Sectorally, the BSE Capital goods sector index suffered the most by losing 1.39 per cent, followed by auto index (down 1.05 per cent), oil and gas index (0.86 per cent) and metal index (0.63 per cent). FMCG index was the lone gainer.

A weakening trend in the Asian region and lower opening in Europe further influenced the domestic market.

Yesterday, reports said U.S. employers advertised the most job openings in more than five years in October, and the number of people quitting also reached a five-year high. This aided bets that a US budget agreement will boost prospects for tapering the Federal Reserve's stimulus programme.

Budget negotiators have unveiled a pact to ease automatic spending cuts by around USD 60 billion over two years and cut the US deficit by around USD 23 billion.

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