Sensex closes 250 pts down on weak European cues
04 May 2010
The benchmark Nifty cracked in the last couple of hours and slipped below the 5150 level on selling across the sectors. Weak European cues weighed on the markets, which pushed the Sensex lower by 250 points and the Nifty by 70 points.
European markets like FTSE, CAC and DAX slipped 1-1.5% on the back of fall in metal, banking and energy companies' shares. A rate hike in Australia, wherein RBA raised cash rate by 25 bps to 4.5%; concerns about tighter monetary policy in China and strength in dollar spurred negative sentiment in commodity stocks.
The US index futures also slipped into the red. Asian markets closed lower; Straits Times and Shanghai fell 1.2-1.5%. Hang Seng, Kospi and Taiwan were marginally in red.
The 30-share BSE Sensex closed at 17137.14, down 248.94 points or 1.43% and the 50-share NSE Nifty plunged 74.25 points or 1.42% to settle at 5148.50. The Nifty May futures ended with 18 points discount, as per provisional data.
Metals saw huge selling pressure following sell-off in global metal companies' shares post Australia imposed 40% tax on mining companies. The BSE Metal Index lost 4%, SAIL, Tata Steel, Sterlite Industries and Hindalco plunged 4-6%. Jindal Steel fell 1.5%.
Banking companies' shares also declined; ICICI Bank was down 2.3% and HDFC Bank was down 1.67%. SBI, Axis Bank, Kotak Mahindra Bank and IDFC lost 0.7-1.5%.
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