MUMBAI, Jan 4: The benchmark index of Bombay Stock Exchange (BSE) crashed by 342.25 points, below 21K to 20,851.33, a two-week-low amid concerns over sluggish growth and rising fiscal deficit.
The Nifty of National Stock Exchange (NSE) fell by 103 points to 6,211.
Core eight infrastructure industries registered a muted growth at just 1.7 per cent in November 2013 compared with 5.8 per cent in November 2012. In October 2013, production of these core industries fell 0.6 per cent.
The fiscal deficit for the first eight months (April-November)stood at Rs 5.1 lakh crore of the Budget estimates for 2013-14 clearly showing fiscal strain in the economy.
The S&P BSE Mid-Cap index slipped by 4.58 points to 6,659.18 and the S&P BSE Small-Cap index rose by 36.92 points to 6,553. Both these indices outperformed the Sensex.
On the first day of trading, the Sensex shed by 50.57 points to settle at 21,143.01, after Reserve Bank of India (RBI) Governor Raghuram Rajan said that the commencement of tapering by the US Federal Reserve will mean a repricing of certain assets with consequent volatility in the global financial markets and that a potential additional source of uncertainty for India is the coming general election.
Very next day, a slight improvement was seen as the Sensex rose by 27.67 points to 21,170.68.
On Wednesday, the Sensex declined by 30 points to 21,140 as selling pressure was seen in Oil and Gas, Technology and IT stocks after the data on Government’s finances raised concerns that India may overshoot its ambitious target of containing fiscal deficit at 4.8 pc of GDP this year and after another data showed a muted growth in the core sector in November 2013.
On Thursday, it further crashed by 252.15 points to settle at 20,888.33, its lowest closing level since December 19, 2013 as European stocks declined as gauges of manufacturing in China, the world’s second-biggest economy declined.
The negative trend lasted for third day too, as on Friday, it marginally declined by 37 points to 20,851.33, a two week low as profit booking witnessed in Metal, Auto, Oil and Gas and Power stocks.
(AGENCIES)
Trending Now
E-Paper
Follow our WhatsApp channel