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Thursday, 16 June 2016

Sensex slumps 201 points on global weakness




Mumbai, Jun 16 (PTI) Fresh global economic worries once again reflected in Indian stocks with benchmark Sensex staggered to slump 200.88 points to finish 26,525.46 after bank of Japan kept the monetary-easing policies unchanged and Brexit worries.

The overnight hefty short-covering gains amid SBI merger consent with subsidiaries as well as new aviation policies approved by cabinet were shortlived as investor sentiment once-again back to tenterhooks following revival of fresh global uncertainties.

The BOJ inaction on stimulus after its two-day monetary-policy review led Asian markets tumble across the region, with Japan Nikkei 225 index falling 3.05 per cent lower.

While European equities rattled following US Federal Reserve trimmed the year-2016 growth forecast 2 per cents from 2.2 per cent after its two-day huddle, even as the central bank signalled slower approach on raising interest rates, in the midst of Brexit concerns.

US Chairwomen Janet Yellen statement Britain June23 referendum on whether the country will stay in the EU was a factor to look for with vulnerabilities in the global economy remain.

The domestic stock momentum characterized weakness relating global downtrend, though recovered from its over 400 points downfall during intra-day owing to bouts of stock specific value buying and Metal segment, while recapturing over 200 points during the close.

The BSE Sensex opened lower at 26,686.03 and tanked to low of 26,314.91 before ending at 26,525.46, showing a loss of 200.88 points or 0.75 per cent. Yesterday the gauge had gained 330.63 points.

The 50-issue NSE Nifty also dropped 65.85 points or 0.80 per cent to conclude at 8,140.75.

Barring Metal counters, selling was led by Telecom, Banks, Capital Goods, Finance, Industrials, Realty and Energy sectors. While secondline including midcap and smallcap shares also incurred losses. .

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