Falling for the seventh straight day, the benchmark BSE Sensex today slumped over 490 points on sustained fund outflows which also pulled down the rupee to nearly four-week low of 62.17 against the dollar on exit polls showing that the Narendra Modi-led Bharatiya Janata Party (BJP) may not be able to form government in Delhi with Arvind Kejriwal’s Aam Aadmi Party (AAP) all set to steal the thunder.
Gold prices too plunged by Rs 410 to over two-week low of Rs 27,790 per 10 grams in the National Capital due to poor demand and weak global cues.
Stocks markets slumped over 1.50 per cent due to across the board sell-off triggered by exit polls that predict defeat for BJP in Delhi election and weaker-than-expected results by corporates.
“Disappointing corporate earnings and caution ahead of GDP for the December quarter, accelerated selling activity on the bourses” said a broker, Deepak Pahwa.
The BSE Sensex fell by by 490.52, or 1.71 per cent, to end at 28,227.39, a closing level not seen since January 16.
The 30-share index has plunged from record highs losing 1,454.38 points, or 4.90 per cent, in its longest losing seven-session streak in 15 months. It hit an all-time high of 29,844.16 on January 30.
The 50-share Nifty tanked 134.70 points, or 1.56 per cent, to close at 8,526.35 points.
Stocks of capital goods, metal, auto, banking, consumer durables, FMCG and refinery declined sharply on heavy selling pressure.
“Markets reacted negatively to exit polls on Delhi election, which indicates the Aam Aadmi Party would form the government in Delhi and that would be the first state election defeat of party ruling in Centre, post Lok Sabha election,” said Jayant Manglik, President-retail distribution, Religare Securities Ltd.
Foreign funds continued to remain net sellers on domestic bourses which weighed on the sentiment, brokers said. FPIs sold shares worth a net Rs 96.45 crore on Friday last.
Metal stocks such as Tata Steel, Sesa Sterlite, JSW Steel, Hindalco, SAIL and Jindal Steel and Power came under pressure, tracking global prices after a weak Chinese data.
In the forex market, rupee declined by 48 paise to close at nearly four-week low of 62.17 against the dollar.
The rupee weakened due to fresh dollar demand from banks and importers, fall in stocks and a strong dollar in overseas markets, dealers said.
Dipen Shah, Head of Private Client Group Research, Kotak Securities
Markets were weak today largely on the back of the exit poll results for the Delhi assembly elections as well as weak global cues. Weaker-than-expected results from L&T also impacted market sentiment. We believe that, the outcome of the Delhi assembly elections will not have any major long term impact on the fiscal initiatives which are expected from the Central Government. Thus, we believe that, there will be no major impact on the growth rates of the country. Going ahead, we believe that, the budget announcements will be an important event to watch out for.
Market Outlook by Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services
Q3FY15 results continues to shock the market, though at the start of the result month expectations were lower say only 4-5% Sensex earnings growth, but actually they are much lower than consensus. The latest development in Delhi should have provided added factor to the consolidation but considerable factors to the fall are no rate cut in the near-term, poor results and concern in Euro. As a result Banks, Infra, Metals and capital goods are giving highest impact.
Market Wrap Up by Alex Mathews, Head Research, Geojit BNP Paribas Financial Services
The markets today remained under pressure due to weak global cues. The global markets were also down on weak Chinese trade numbers, Greece political uncertainty and of the rate hike concerns by the US central bank.
Nifty today closed at 8526, down around 134 points. The market breadth stood negative as there were seen 938 stocks advancing against 1908stocks declining. The Nifty volatility index, India VIX stood at 22.0150 up around 6.42%.
The mid-cap and small-cap sectors closed down around 1.41% and 1.50% respectively.
All the sectors ended in red and the major sectorial losers for the day were capital goods and Realty which closed down around 4.31% and 2.73% respectively.
In the stocks’ front, selling were seen in LT and Tata steel, closed down around 6.60% and 5.75% whereas buying were seen in Bajaj Auto and HCL Tech which closed up around 2.06% and 2.03% respectively.
The FIIs were net sellers in the capital market segment, sold shares worth Rs 96.45 crore on Friday, 06 February 2015. On the other hand the DIIs were net buyers on 06 February 2014, bought shares worth Rs 115.49 crore as per the provisional data from the stock exchanges.
The European markets fell as on the political uncertainty in Greece as the Prime Minister reaffirmed his rejection of the country’s international bailout program. The US index futures were also trading lower.
Tomorrow companies like Suven, Jk Paper, Speciality, Radico, ABB, TRF, Care rating,, Zicom, NALCO, BEML and Hexaware may announce their earnings.