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Market Report

Tuesday, 27-Aug-2013

NSE

  • The 30-share Sensex, which had gained 652 points in past three sessions, tumbled by 590.05 points, or -3.18 per cent to 17,968.08, a level last seen on August 21. On similar lines, the broad-based National Stock Exchange index Nifty fell below a crucial 5300 level by dropping 189.05 points, or -3.45 per cent to 5,287.45 today as the rupee nosedived to 66-mark against dollar and concerns related to government's fiscal burden after the passage of Food Security Bill weighed on sentiment.

  • Investors lost a whopping Rs 1.7 lakh crore in wealth as across-the-board selling saw over 1,500 stocks closing in red. Brokers said with the rupee hitting a new record low of 66 per dollar in intra-day trade, market participants resorted to panic selling on concerns over increased capital outflows.

  • The selling pressure gathered momentum on worries that the Food Security plan would worsen government's fiscal burden while a weakening global trend on growing tension in Syria and surging oil prices also weighed, brokers added. Risk appetite further dampened on fear over military action by the US after Secretary of State John Kerry held Syrian government accountable for using chemical weapons in an attack over civilians.

  • It is widespread belief that the UPA govt's ambitious Food Bill will be a strain on the fiscal side and take inflation to higher levels. The plunge in the market came even as Finance Minister P Chidambaram, earlier in the day, addressed a presser, saying that fiscal discipline will be maintained despite the Food Security Bill.

  • FIIs have been pulling out funds from our stock markets heavily for the last 8 sessions. See our 'Market Statistics' page. This is not a healthy sign under the present circumstances, and predicts further downsides.

NIFTY 3-Month

(Data/Charts courtesy NSEI/Yahoo!/iCharts/The Economic Times)