Sensex Down For 7th Day, Falls 54pts As Political Worries Rise
Mumbai: After rising 215 points in early trade on positive global cues after Cyprus clinched a bailout, the BSE benchmark Sensex reversed gear on worries over domestic political developments with the index ending with a 54-point loss at 18,681.42, extending losses to seventh day.
The Sensex, which opened with a 158-point jump at 18,894.13 after European lenders agreed to a last-minute bailout for debt-ridden Cyprus, rose to to a high of 18,950.22 as buying activity strengthened. However, concerns of domestic political stability resurfaced that triggered spate of selling in capital goods, auto, metal and banking shares.
Erasing gains, the 30-stock index fell for the seventh straight session by losing 54.18 points, or 0.29 per cent to 18,681.42, its lowest level since November 26, 2012. In the seven days, the Sensex has now lost close to 890 points.
"...Indian equity market ended in the red reversing all its early gains after media reports stated that Samajwadi Party may pull the plug on the UPA government," a note by brokerage IIFL said.
Led by L&T, SBI, ICICI Bank, Hero MotoCorp,Infosys, RIL, Bharti Airtel, GAIL and Cipla, 20 stocks in Sensex ended down.
Investors viewed Samajwadi Party chief Mulayam Singh Yadav's comments about coalition politics yesterday as a signal for early elections, said stock market experts.
The NSE Nifty lost 17.50 points, or 0.31 per cent, to end at 5,633.85, after touching day's high high of 5,718.40.
Stock dealers sid the market sentiment has been low ever since the DMK withdrew support last week and RBI indicated little room for interest rate cuts. Funds were also reducing holdings ahead of monthly derivative expiry.
Globally, most Asian markets ended 0.5-2.9 per cent up and European indices were trading around 1 per cent up in early trade after Cyprus agreed to an aid package, paving the way for 10 billion euros of emergency loans to stave off the threat of default.
