Monsoon forecast, Fed meeting drag Sensex by 165 points

PTI Posted online: Wednesday, Apr 30, 2014 at 0000 hrs
Mumbai : Sensex nosedived by over 165 points to 22,466.19 on Tuesday on consistent profit-booking across counters, with investors turning cautious amid a slew of negative factors.

The sentiment was also influenced by the two-day monetary policy meet of the US Federal Reserve starting Tuesday which is expected to trim monthly bond purchases by another $10 billion.

Profit-booking was seen for the the third successive day. In across-the-board profit taking, nearly 11 out of 12 sectoral indices closed in the red with metal, banking, auto and power segments leading the downfall. Consumer durables index managed to to settle in the green.

The 30-share barometer was in the negative terrain for most of the day before settling at 22,466.19, a fall of 165.42 points or 0.73%. In straight three sessions, it has plunged by 410.35 points or 1.79%.

The wide-based 50-issue CNX Nifty of the NSE also dipped by 46 points or 0.68% to 6,715.25. Investors’ worries over developments in Ukraine lingered on as the US has already announced some sanctions and also threatened to impose more economic sanctions on key sectors of Russia's economy.

On the domestic front, slowdown in capital inflows and announcement of below normal monsoon weighed.

Stock brokers said wary investors are now waiting for the outcome of the Lok Sabha election and they hope a new stable government will take initiatives on reform measures.

Jignesh Chaudhary, Head Of Research, Veracity Broking Services said: “Local equities continued to trade weak.... On Monday, FIIs were seen selling in the local markets and posted its lowest net buying in the whole month. Also, the DIIs continued to be net sellers in the equity. Till date for this month DIIs have been the net buyers only for two days in sixteen working days."