Dec 02, 2016 04:12 PM IST | Source:

Sensex slumps 329 pts, Nifty ends below 8100; auto, banks tank

Bajaj Auto, Hero MotoCorp, Cipla and Bharti Airtel were top gainers while Adani Ports, Maruti, Tata Motors, Asian Paints and HDFC were losers in the Sensex.

Moneycontrol Bureau

3:30 pm Market closing:
The market has ended in red after drastic fall. The Sensex closed down 329.26 points or 1.2 percent at 26230.66, and the Nifty slipped down 106.10 points or 1.3 percent at 8086.80. About 878 shares advanced, 1785 shares declined, and 129 shares were unchanged.

Bajaj Auto, Hero MotoCorp, Cipla and Bharti Airtel were top gainers while Adani Ports, Maruti, Tata Motors, Asian Paints and HDFC were losers in the Sensex.

2:55 pm Europe weak: European bourses were lower as political uncertainty in Italy and France intensifies. France's CAC, Germany's DAX and Britain's FTSE were down 0.8-1.4 percent.

2:46 pm Market Update:
Equity benchmarks fell further with the Nifty breaking 8100 level.

The Sensex was down 298.70 points or 1.12 percent at 26261.22 and the Nifty fell 99.75 points or 1.22 percent to 8093.15.

More than two shares declined for every share rising on the BSE.

2:42 pm NSE CEO quits:
National Stock Exchange CEO Chitra Ramkrishna has quit the exchange over difference with its board, people privy to the development told CNBC-TV18.

BSE & NSE member Dipan Mehta said the resignation is unlikely to have an impact on the working of the exchange. It is a great organisation which created value and the development shouldn’t impact functioning of NSE.

2:38 pm No import duty on gold:
The government today said there is no proposal under consideration to reduce import duty on gold.

"There is no such proposal under consideration at present," Minister of State for Finance Santosh Kumar Gangwar said in a written reply to the Lok Sabha.

Gems and jewellery exporters have demanded cut in the import duty to boost exports.

In a separate reply, the minister said, representations were received from the Confederation of Indian Textile Industry (CITI) and from the Federation of India Art Silk Weaving Industry to increase customs duty on import of fabrics, in general, from 10 per cent to 20 per cent.

"The same was examined and it was decided not to make any changes in customs duty on fabrics," he said.

2:30 pm Rate cut possible?:
Reserve Bank is expected to go for a 25 bps repo rate cut in its next week's policy review meet in view of downside risks to the economic growth, says a Citigroup report.

According to the global financial services major, there is a "risk of a sub-7 percent GDP growth" this fiscal following lower-than-expected second quarter GDP print, adverse impact of demonetisation and fall in investments.

"The downside surprise in GDP, particularly the sustained fall in investment for three consecutive quarters strengthens the case for a 25 bps repo rate cut in the December policy," Citigroup said in a research note.

The Monetary Policy Committee headed by RBI Governor Urjit Patel in October had cut benchmark interest rates by 0.25 percent to 6.25 percent.

The next RBI policy review is on December 7.

2:15 pm MSS ceiling raised:
Government in consultation with the RBI today sharply raised the Market Stabilisation Scheme (MSS) ceiling to Rs 6 lakh crore from Rs 30,000 crore to mop up extra liquidity from the system in view of demonetisation.

After the withdrawal of the legal tender character of the Rs 500/1,000 denomination notes with effect from November 9, there has been a surge in deposits with the banks, the Reserve Bank said in a notification.

Consequently, there has been a significant increase of liquidity in the banking system that is expected to continue for some time, it said.

"In order to facilitate liquidity management operations by the RBI in the current scenario, the government has, on the recommendation of the RBI, decided to revise the ceiling for issue of securities under the MSS to Rs 6,000 billion," it added.

Also read -
Buy, sell, hold: 7 key stocks that you should focus now

2:00 pm Market Check

The selling pressure continued in afternoon trade following a negative lead from global peers and further profit booking.

The 30-share BSE Sensex was down 205.89 points at 26354.03 and the 50-share NSE Nifty fell 69.20 points to 8123.70 while the broader markets were down 0.8 percent on weak breadth.

About two shares declined for every share rising on the Bombay Stock Exchange.

BPCL, Kotak Mahindra Bank, Asian Paints, Tata Motors, Aurobindo Pharma, HDFC, Dr Reddy's Labs and ITC were down 1.5-3 percent whereas Eicher Motors was the biggest gainer among Nifty 50 stocks, up nearly 3 percent followed by Tata Power, Tech Mahindra, Bosch, Sun Pharma, Coal India, Sun Pharma, Cipla and SBI.

Follow us on
Available On