A maturing market amid the mayhem
Sensex falls as post-poll euphoria begins to fade
The stock market was volatile today as profit taking continued for the second day after a two-day post election rally. Weak Asian markets too weighed on investor sentiments.
The Sensex moved mostly in negative territory throughout trade, turning positive briefly after touching an intra-day low of 13,704.43 points and then shifted back to the red. The benchmark closed 324.12 points down at 13,736.54, while the Nifty ended 59.40 points lower at 4,210.90.
The main contributors to the benchmark’s fall were L&T, ICICI Bank, HDFC and Reliance Industries.
On the sectoral front, the BSE Capital Goods Index dropped 5.4 percent, followed by the Banking Index which ended 2.9 percent lower. The BSE Public Sector Undertaking Index, however, ended higher at 2.7 percent.
FIIs sold net $49.10 million in shares.
Oil stocks gained on account of higher crude prices which is now hovering above $60 a barrel. The realty sector fell on account profit taking, but the outlook remains robust as the new UPA government is likely to focus on investments in infrastructure to boost economic activity.
Data showed inflation has risen to 0.61 percent on account of higher food and metal prices in the 12 months to May 9.
Do you think the formation of the new government will infuse confidence among investors and help the Sensex cut losses?