Finance

Sensex back in red on Fed rate hike, GST worries

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Mumbai :  Indian shares again slipped today after taking a day’s breather to log their second straight weekly loss as the benchmark BSE Sensex dropped 208 points on a likely US rate hike and persistent GST concerns, while a fall in carmakers’ shares also added to the rout.

This was the seventh fall in last eight sessions, and for the week, the index slumped by 593.68 points or 2.31 per cent, making it the second-straight weekly fall.

Disregarding initial positive momentum, the market again went into the bearish mode as caution crept over ahead of key macro numbers, Industrial Production (IIP).

Investors grew increasingly worried over a possible delay in the passage of the key GST bill amid weak global cues as investors prepared for the outcome of next week’s Fed policy meet which probably will raise interest rates for the first time in a decade.

Weighed down by heavy selling in blue-chips, the Sensex crashed below the crucial 25,000-mark to hit a low of 24,930.43 during the mid-session.

However, on value-buying in select counters it managed to close above 25,000, still at over three-month low of 25,044.43, showing a fall of 207.89 points or 0.82 per cent.

The NSE Nifty after slipping below the 7,600-level to hit a low of 7,575.30 finally settled 72.85 points or 0.95 per cent lower at 7,610.45. On weekly basis the index dropped by 171.45 points or 2.20 per cent.

Auto sector stocks came under pressure after the National Green Tribunal cracked down on purchase of diesel vehicles in the National Capital.

Tata Motors, M&M, Maruti Suzuki, Ashok Leyland and Eicher Motors plunged up to 2.98 per cent, dragging down the Auto index by 1.71 per cent.

Besides, the BSE Banking index fell by 2.25 per cent as stocks of ICICI Bank, Axis Bank, SBI and HDFC Bank too suffered losses up to 3.60 per cent.

Bucking the trend, Tata Steel surged the most by 3.41 per cent followed by Hindalco 0.73 per cent, Cipla 0.66 per cent, HUL 0.60 per cent and Vedanta 0.36 per cent.

Elsewhere, Asian stocks slid led by decline in China on beaten-down oil prices and a slide in China’s yuan to 4-1/2 year lows left markets in a somber mood.

European shares also lower as weak commodity prices put pressure on markets before a widely expected rise in the US interest rates next week.

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Nagaraju Tadakaluri
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