Global woes, Budget blues weigh on market, NSE Nifty drops 21 pts

Metal stocks, particularly frontline counters, suffered the most on concerns over fresh Chinese tightening measures to cool property sector. FMCG, infra, auto, energy and realty stocks also witnessed selling.

Trading commenced on a sluggish note against the backdrop of global uncertainty over US spending cut and consistent selling in heavyweights. The fall in rupee, which slipped to a near two-month low against the US dollar in early trading, also dampened the overall sentiment.

The key index remained under intense pressure for most part of the session. It briefly ventured into the green in late afternoon on the back of some low-level buying in financial and pharma stocks.

The market is likely to fall further as investor confidence is very low at this juncture. It won't be easy to restore confidence unless the government comes out with some strong policy measures, traders said.

Though the FIIs welcomed the Finance Ministry's clarifications on the tax residency certificate issue, there are still some outstanding issues pending, they added.

Globally, a sharp sell-off in Chinese market on growth fears along with political uncertainty in Italy and US fiscal woes weighed on Asian and European bourses.

The 50-share index fluctuated between a high of 5,712 and a low of 5,663.60 before finishing at 5,698.50, a fall of 21.20 points, or 0.37 per cent, from last close.

JP Associates, Hindalco, Jindal Steel,

... contd.