Sensex, Nifty See Biggest Drop In 20 Days On Capital Outflows

By SiliconIndia   |   Thursday, July 31, 2014
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MUMBAI: Equity benchmarks today logged their biggest drop in 20 days with Sensex slipping below 26,000 mark and the Nifty ending at 7,721.30 on caution due to expiry of monthly derivative contracts and fund outflows after the U.S. Fed's move to trim its bond buying programme hit sentiment.

Banking, power, consumer durable and capital goods stocks attracted profit-selling. ICICI Bank and Maruti Suzuki shares dropped even after in-line quarterly results, said brokers.

The BSE 30-share Sensex resumed better and moved side ways in a narrow range till mid-session. However, it met with strong resistance and gradually declined to end at 25,894.97, a fall of 192.45 points or 0.74 per cent. This is its biggest fall since July 11 when it slipped 348.40 points.

The 50-issue CNX Nifty of the NSE dipped by 70.10 points, or 0.90 per cent, to 1-1/2-week low of 7,721.30. The Nifty's drop today was also its steepest since July 11 (down 108.15 points.)

Losses in HDFC, ITC, Tata Motors, M&M, TCS, HUL, Wipro, Maruti Suzuki and BHEL weighed on indices.

Globally, the U.S. Fed's decision to continued with gradual tapering and reducing asset purchases by another $10 billion/month, triggered concerns that flows into emerging market would slow. Besides, risk-aversion was seen due on reports that Argentina has failed to strike a deal to avert its second default in more than 12 years.

Asian stocks finished mixed. Key benchmark indices in Japan, South Korea and Taiwan closed lower while from China, Hong Kong and Singapore concluded higher.

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