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Markets dropped further with 30-share Sensex shedding 320 points in the late afternoon session this Friday on back of selling pressure witnessed in rate-sensitive sectors.
Adding to the pessimism was the statement by the Reserve Bank of India’s governor on Thursday after he hinted at upside risks to retail inflation.
At 2:10PM, the Bombay Stock Exchange's 30-share index Sensex declined 320 points at 19,884 while the National Stock Exchange's 50-share was down 100 points at 6,020.
Meanhwile, India's GDP refused to grow by large numbers despite the much-touted reforms, growing at a snail's pace of 4.8% in the fourth quarter from 4.7% in the third quarter of 2012-13.
Global risk appetite was also frail amid looming fear over a pull-back of stimulus by the US Federal Reserve earlier than expected.
Asian shares traded lower with Hong Kong’s Hang Seng falling 0.3% to 22,405, China’s Shanghai Composite declined 0.7% to 2,300, Singapore’s Straits Times fell 0.6% to 3,316 while Japan’s Nikkei rose 1.3% to 13,774 today.
Meanwhile, European markets were lower in opening deals. France’s CAC fell 0.6% to 3,972, UK’s FTSE declined 0.6% to 6,611 while Germany’s DAX was down 0.6% to 8,348.
Back home, barring IT index, rest all declined with FMCG, oil & gas, realty, bankex, capital goods, metal sectors topping the losers list on the BSE.
The gainers on the Sensex included Sterlite Industries rose 1.4%, Infosys and TCS gained 1% and 0.2% while DR Reddy’s rose 0.5% on the BSE.
The laggards were Hindalco Industries declined 4%, ITC fell 3.2%, Mahindra & Mahindra dropped 3%, Reliance Industries shed 2.6% while HDFC Bank and SBI were down 2.6% and 1.3% respectively on the BSE.
The broader markets fell with mid-caps and small-caps dropping nearly 0.5% on the BSE.
The market breadth was negative. Out of 2,193 stocks traded, 1,303 stocks declined compared to 764 advances on the BSE.
