Nifty ends 101 pts lower on US jobs data, Europe jitters
07 Jun 2010
The benchmark Nifty shed 100 points on sell-off across the globe, reacted to spreading Eurozone debt crisis from PIIGS (Portugal, Ireland, Italy, Greece, & Spain) countries to other regions like Hungary. However, the Sensex managed to recover nearly 100 points as it factored in global sell-off; even European markets and US index futures showed some recovery after initial knee-jerk reaction.
All the sectoral indices ended in the red; metal and realty sectors were the worst performers. Respective indices plunged nearly 4%. Among the others, oil & gas, capital goods, auto, bank, IT and power indices declined 1.7-2%.
However, only four stocks were in the green on the Nifty. Reliance Communications shot up 4.8%, as the company's board has given in-principle nod for 26% stake sale. Ambuja Cements, ACC and Kotak Mahindra Bank were the other gainers.
The 30-share BSE Sensex closed at 16,781.07, down 336.62 points or 1.97% and the 50-share NSE Nifty fell 101.50 points or 1.98% to settle at 5,034, after 94 points and 30 points recovery from day''s low.
Disappointing jobs data sent the US markets crashing 3-3.7% on Friday. US nonfarm payrolls for May increased 431,000 while market expected at 500,000.
Other fears centred on Hungary, where ruling party officials suggested there was a slim chance of it avoiding a Greece-style debt crisis.