Equity market indices - Sensex and Nifty - on Wednesday declined for the third consecutive day. According to market observers, the NSE Nifty50 closed at its lowest level in almost five weeks. On a closing basis, the wider Nifty50 of the National Stock Exchange (NSE) fell by 68.55 points, or 0.67 per cent, to 10,118.05 points. The barometer 30-scrip Sensitive Index (Sensex) of the BSE closed at 32,760.44 points -- down 181.43 points or 0.55 per cent -- from Tuesday's close.
Here are the five key reasons for fall in market indices - Sensex, Nifty
1. Sensex and Nifty fell as sentiments were hampered by weak global cues with the crude oil prices rising in the international market. The BSE market breadth was bearish -- 1,991 declines and 720 advances.
2. There is a huge sell-off in metal stocks. "Metal shares tumbled as prices of industrial metals declined in global commodities market. The Nifty hit its lowest closing level in five weeks," Deepak Jasani, head, retail research, HDFC Securities said. Dhruv Desai, Director and Chief Operating Officer of Tradebulls said, "Metal stocks like Vedanta and Hindalco Industries fell over four per cent each."
3. India's October trade deficit widened by nearly $3 billion. The official data released on Tuesday showed that India's trade deficit widened to $14 billion in October as against $11.13 billion during the same period last year. "Markets corrected sharply on Wednesday to close with losses for the third consecutive session. Weak global cues and data showing widening of India's trade deficit in October dampened investor sentiments," said Deepak Jasani.
4. On the currency front, the rupee strengthened by 20-21 paise to 65.21-22 against the US dollar from its previous close at 65.42, thus aggravating the profitability of export-driven sectors such as Infotech.
5. The September quarter results of some companies have lagged the market estimates, something that added to the grim sentiment. "Choppy Q2 results during the latest leg of the result season failed to provide a reasonable comfort," said Vinod Nair, head of research, Geojit Financial Services said.
All the 19 sub-indices of the BSE closed in the red, led by the metal (down 434.40 points), consumer durables (down 280.82 points) and healthcare (down 179.42 points) indices.
Provisional data with the exchanges showed that foreign institutional investors sold stocks worth Rs 381.42 crore, while domestic institutional investors purchased scrips worth Rs 869.09 crore.
Major Sensex gainers on Wednesday were: Asian Paints, up 1.96 per cent at Rs 1,176.85; Kotak Bank, up 1.29 per cent at Rs 1,012.20; Hero MotoCorp, up 0.72 per cent at Rs 3,680; ICICI Bank, up 0.54 per cent at Rs 315.55; and Infosys, up 0.26 per cent at Rs 951.95.
Major Sensex losers were: Sun Pharma, down 4.01 per cent at Rs 505.05; ONGC, down 2.55 per cent at Rs 177.35; Bharti Airtel, down 2.15 per cent at Rs 487.35; NTPC, down 1.70 per cent at Rs 173.95; and Lupin, down 1.50 per cent at Rs 822.65.
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