Bihar polls, US data dent markets; Sensex closes 249 points down (Roundup)

Anxiety over the outcome of the Bihar assembly polls coupled with upcoming US jobs data dented investors' sentiments in the Indian equity markets and led a barometer index to close 249 points down on Thursday.

Both the bellwether indices of the Indian equity markets opened in the negative territory in sync with European and Asian markets. Lackluster quarterly results and absence of any major positive triggers eroded investors' confidence.

On Thursday, the wider 50-scrip Nifty of the National Stock Exchange (NSE) ended the day's trade deep in the red. It was lower by 85 points or 1.05 percent at 7,955.45 points.

The barometer 30-scrip sensitive index (Sensex) of the S&P Bombay Stock Exchange (BSE) which opened at 26,557.80 points, closed at 26,304.20 points -- down 248.72 points or 0.94 percent from the previous day's close at 26,552.92 points.

The Sensex touched a high of 26,557.80 points and a low of 26,243.20 points in the intra-day trade.

Market observers cited that anxiety over Bihar election outcome coupled with upcoming US jobs data and disappointing quarterly results subdued the intra-day trade.

"Investors were reluctant to chase higher prices, ahead of the crucial US jobs data scheduled for this Friday," Anand James, co-head, technical research desk with Geojit BNP Paribas Financial Services, told IANS.

The US jobs data, to be released on Friday, is expected to give cues on whether the US Fed will raise interest rates in its December meeting. The US Fed is slated to conduct its Federal Open Market Committee (FOMC) during December.

The FOMC assumes significance as higher interest rates in the US are expected to lead away FPIs (Foreign Portfolio Investors) from emerging markets such as India.

"Yesterday's comments from the US Fed Chairwoman Janet Yellen has significantly upped the chances of a december rate hike unless jobs figures disappoint drastically," James said.

On Wednesday, US Federal Reserve chairperson Yellen hinted at a possible December interest rate "lift-off."

Furthermore, investors avoided taking long positions ahead of the Bihar elections verdict which is due on November 8. The Bihar exit poll forecasts are streaming out on Thursday evening.

Gaurav Jain, director with Hem Securities, said: "Exit poll of Bihar elections which will be released post market hours, weakening of rupee and weak global cues weighed on the sentiment."

The rupee closed the day's trade weaker by six paise at 65.75 to a US dollar from its previous day's close of 65.49 to a greenback.

The foreign institutional investors (FIIs) were net sellers in the day's trade, whereas the domestic institutional investors (DIIs) were net buyers.

According to data with stock exchanges, the FIIs sold stocks worth Rs.991.87 crore, while the DIIs bought stocks worth Rs.636.15 crore.

Nitasha Shankar, vice president, research, with YES Securities, told IANS: "All major indices ended in red in line with the benchmark index as selling was witnessed across the board."

"Market breadth favoured the bears throughout the day with 1,800 declines and 896 advances. Pharma, reality, bank, metal, media and tech indices ended with cuts in the range of 1.5-2 percent," she said.

Sector-wise, all 12 S&P BSE industry indices ended in the red. Healthcare index plunged by 368.92 points, banking index receded by 289.71 points, capital goods index plummetted by 139.61 points, information technology (IT) index fell by 138.10 points and consumer durables index was lower by 93.17 points.

Major Sensex gainers during Thursday's trade were Coal India, up 2.13 percent at Rs.337.30; NTPC, up 0.97 percent at Rs.136; Hero MotoCorp, up 0.93 percent at Rs.2,638.60; ITC, up 0.60 percent at Rs.337.55; and Mahindra and Mahindra (M&M), up 0.50 percent at Rs.1,260.15.

The major Sensex losers were Vedanta, down 4.66 percent at Rs.94.10; Tata Steel, down 4.33 percent at Rs.225.60; Sun Pharma, down 4.28 percent at Rs.815.85; BHEL, down 3.31 percent at Rs.194.20; and Bharti Airtel, down 2.82 percent at Rs.335.90.