Sensex slips 219 points on export worries

Stock market indices, which started the day on a positive note, plunged into the negative terrain in the afternoon session owing to statement by the junior trade minister Jyotiraditya Scindia that India is unlikely to meet its $200 billion export target for the financial year and profit-booking.

Also, Housing Development Finance Corporation (HDFC) reported results below market expectation, slipping 4.43 per cent. Earlier, US markets were flat. Dow Jones gained 67.79 points, or 0.77 per cent and the Nasdaq added 6.91 points, or 0.36 per cent – a closing high for the year and the longest in 12 years.

The Bombay Stock Exchange Sensitive Index, or Sensex, declined 219.37 points or 1.46 per cent, to 14,843.12. The S&P CNX Nifty slipped 70.20 points to 4,398.90. Amitabh Chakraborty, head (equities) Religare Securities said , “The decline was expected because markets were in an overbought situation. The Nifty can correct up the 4,250 mark.”

The market breadth was negative. Out of the 2,687 stocks traded at the BSE, 1,164 advanced, 1,427 declined while 96 remained unchanged.  Among the sectoral indices, capital goods shed 1.82 per cent, The IT, power, auto indices were down by over 1 per cent each. All the IT stocks were in red today, barring Moser Baer.