Business Standard

Sensex slumps below 17k more pain seen

Key indices break crucial technical support levels, close below 200-DMAs

SENSEX INTRA-DAY
Related News

Shares tumbled on Friday after a junior minister said the country was reviewing its tax treaty with Mauritius, sparking fears of outflows from foreign investors. A falling rupee and weak global markets added to the negative sentiments.

The Bombay Stock Exchange () benchmark, Sensex, fell 1.87 per cent, or 320.11 points, to 16,831.08. This was the lowest close for the 30-stock index since January 23.

At the National Stock Exchange (), the 50-stock index dropped 1.96 per cent, or 101.55 points, to 5,086.85.

India is considering a review of the Double Taxation Avoidance Treaty with Mauritius to raise revenues, minister of state for finance S S Palanimanickam said in Parliament in reply to a question.

The minister said 39.5 per cent of total foreign direct investment () flows into India between April 2000 and February 2012 have been channelled through Mauritius. The Indian rupee fell six paise to close at 53.47 against the dollar, after hitting an intra-day low of 53.91 in early trade.

“There were concerns regarding the taxability of foreign investors, the depreciation of the rupee in the past few days and the weak global markets,” said , head of fundamental research, . Technically too, markets appear on sticky ground after Friday’s fall.

Both the Sensex and Nifty have closed below their 200-day moving averages (DMAs) of 16,968.04 and 5,117.32, respectively.

“If Nifty continues to remain below its 200-DMA, it will not be good for the markets,” said , founder of Trendwatch (India). “Next week is quite crucial. If the Nifty remains below 5,100, there will be a continuation of the downward movement.”

Among the major losers in the Sensex, BHEL lost 4.93 per cent at Rs 214.1 and Hero MotoCorp declined 4.42 per cent to Rs 1,980.85. Except healthcare, all sectoral indices ended in the red on the BSE. BSE Capital Goods and lost three per cent each. At 6:45 pm, key indices in the UK, France and Germany were trading down one per cent each. Futures on major US indices were also indicating a weak opening.
 

2012: REPEAT PERFORMANCE?
Instances where the Sensex went below 200-DMA and remained there for more than 30 sessions since 2000
Date

Performance post-breaking 200-DMA (In %)

Sensex Next 7
sessions
Next 30
sessions
Maximum
fall*
No of
sessions below
200-DMA
17-04-2000 4,880.71 -4.1 -9.2 -26.4 196
02-03-2001 4,095.16 -9.0 -16.0 -36.5 188
15-07-2002 3,278.71 -5.2 -5.5 -13.6 94
09-04-2003 3,141.25 -5.0 -1.4 -6.9 33
14-05-2004 5,069.87 0.6 -7.1 -11.1 87
03-03-2008 16,677.88 -7.9 0.4 -51.1 274
27-01-2011 18,684.43 -3.5 -1.9 -6.5 42
29-04-2011 19,135.96 -3.3 -4.5 -20.7 190
Date is the day when Sensex closed below it 200-DMA; * Reflects the decline in Sensex based on the lowest closing point touched during its down-trend post breaking 200-DMA

Read more on:   
|
|
|
|
|
|
|
|
|

Read More

Agri Min proposes Rs 170/quintal hike in paddy MSP

In view of rising farm input costs, the Agriculture Ministry has proposed a Rs 170 per quintal increase in the minimum support price (MSP) of paddy ...

Quick Links

 

Market News

Cotton exports hit as China shifts policy

Raw cotton export may fall 20% in the next crop year as against 6% this year; rise in finished yarn exports adds to woes

Sugar exports: Industry restive over delays in subsidy revision

For February-March, the rate decided was Rs 3,300 a tonne; that for April-May was to be announced in the last week of March

Sugar output down 4%, says Isma

Indian mills had produced 1.54 mt raw sugar by the end of March and of that 850,000 tonnes was exported

Analysts' corner

India Cements' stand-alone return ratios have remained subdued over the years due to weak profitability

Jaimini Bhagwati: Are stock prices inflated?

Despite what partisan fund managers are projecting, the rise in the Indian equity market has to be evaluated carefully

Back to Top