Markets under bear grip
Markets under bear grip. The market is slowly entering bear grip with China devalued the yuan for second-time and stalled Parliament is continued thus giving shivers to investors.
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Sensex down 354 pts; rupee fell over further devaluation of the yuan
Mumbai: The market is slowly entering bear grip with China devalued the yuan for second-time and stalled Parliament is continued thus giving shivers to investors. Sensex down with 354 points to close at 27,512 levels and Nifty lower 113 points to end 8,349, below 8350 points. Meanwhile, broader markets underperformed with midcap and smallcap indices lost 2.5 per cent and 2 per cent each.
Global markets worried over China devaluating its currency as major indices fell up to 3 per cent. On the other hand, rupee also fell to a two-year low of 64.84 against US dollar as further devaluation of Yuan added to depreciation of rupee. Even India took the devaluation of yuan seriously as CEA Arvind Subramanian says policy makers across the countries need to adjust their policies.
It is a kind of a hint that India may also take similar step, as it was most overvalued currency among others. On the sectoral front, while FMCG, Auto, Metal, Bankex, Realty, Capital Goods and Oil & Gas indices closed lower up to 4.5 per cent, IT, Healthcare and Consumer Durables close higher up to 2.5 per cent.
Financials across the board declined with SBI down 5 per cent, and others include ICICI Bank, Axis Bank and HDFC, HDFC Bank shed up to 3.5 per cent. Chinese currency fall hit metal stock with Hindalco, Vendanta and Coal India down up to 8 per cent.
The government is considering off-loading minority stake to fund its fiscal deficit. Other major stocks down include BHEL and L&T declined about 2 per cent each and FMCG shares ITC and HUL fell 1 per cent and 2.4 per cent respectively.
The gainers: Infosys 3.59 per cent, Sun Pharma 2.90 per cent, TCS 2.63 per cent, Wipro 1.75 per cent, Lupin 1.28 per cent and Dr Reddy's 1.08 per cent.
The losers: Vedanta 8.03 per cent, Hindalco 7.21 per cent, Coal India 5.53 per cent, SBI 4.77 per cent, Tata Motors 3.92 per cent, ICICI Bank 3.39 per cent, Bajaj Auto 3.13 per cent, M&M 3.09 per cent, BHEL 2.66 per cent, HUL 2.59 per cent and RIL 2.41 per cent.
