Sensex down 305 points

Sensex down 305 points

Key benchmark indices edged lower on the first trading session of the week and the month after the government revised downwards the GDP growth rate for the year ended 31 March 2013 (2012-13) to 4.5 per cent from 5 per cent reported earlier.

The BSE Sensex was down 304.59 points or 1.48 per cent to 20,209.26; the CNX Nifty at NSE declined 87.70 points or 1.44 per cent to 6,001.80, its lowest closing level since November 22, 2013. 

Commenting on the situation, Quantum Securities' Neeraj Deewan said, “Some sort of adjustment was expected after the quantitative easing (QE) tapering move that continued from the Fed. They are serious about it. It might happen in every meeting. So people are adjusting to that. Sooner it adjusts is better for our market. We make a base and from thereon we look ahead.”

The market breadth, indicating the overall health of market, was negative as weakness in Asian and European stocks also dampened sentiment on the domestic bourses. The barometer index of BSE settled at its lowest level in 11-1/2 weeks, while the 50-unit premium index of NSE finished at its lowest level in more than 10 weeks, settling just above the psychological 6,000 mark after falling below that level in intraday trade.

FIIs sold shares worth a net Rs 625 crore from the secondary equity markets on January 31, 2014, as per SEBI data. It may be noted that FIIs had invested $20 billion in India last year, but bought Indian shares worth a net $85.4 million in January, the smallest amount since they sold $902.5 million in August. From broader markets, the BSE Mid-Cap index lost 0.8 per cent to close at 6,257.47 points, while the BSE Small-Cap index fell 0.47 per cent to close at 6,233.74 points.

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