Sensex ends 98 pts down on weak Asian cues, dismal October manufacturing data

Key share indices wrapped up the first trading session of the new month (November) on a weak note, extending the fall for the sixth straight session as the steep correction in other Asian markets and the relatively disappointing corporate earnings so far continued to keep investors at the bay. [caption id=“attachment_2492006” align=“alignleft” width=“380”]  Reuters[/caption] While trading session was marked with extreme volatility, the 30-share BSE S&P Sensex gyrated nearly 450 points intra-day, a high of 167 points and a low of 279 points, before erasing most of its losses in late trades to end 0.4 percent or 97.68 points lower at 26,559.15. In addition to today’s fall, the Sensex last week had lost 814 points on persisting selling pressure. The broader 50-stock CNX Nifty ended weak at 8,050.80, down 0.2 percent or 15 points lower. Market breadth ended weak, with 1,541 stocks declining against 1,156 advances on BSE. Adding to the pessimism, India’s manufacturing sector growth slipped further and touched a 22-month low in October largely due to a slower increase in new orders, but firms hired additional workers, a Nikkei survey said today. The Nikkei India Manufacturing PMI – a composite monthly indicator of manufacturing performance – stood at 50.7 in October, down from 51.2 in September, reflecting a weaker improvement in business conditions across the sector, according to a PTI report. Across Asia, key Chinese equity indices Hang Seng fell 1.2 percent and Shanghai Composite declined 1.7 percent after the country’s factory output fell for the eight straight month in October. Other Asian giant the Japan’s Nikkei tumbled 2.1 percent, adding to the overall gloom. “The slide has been more to do with weak global equity market sentiment. Disappointing Chinese economic activity data for October has augmented fears amongst investors that global slowdown may persist for long. The sentiment may remain nervous for some more time, but the markets will soon bounce back,” said G Chokkalingam, founder & managing director, at Equinomics Research & Advisory. Among the Sensex laggards, shares of Bajaj Auto fell the most, dropping 4.8 percent to Rs 2,426. Others such as Hindalco shed 3.7 percent to Rs 80.95, Tata Steel tumbled 3.3 percent to Rs 238.65, Vedanta crumbled 3.1 percent to Rs 96.90 and HDFC was down 2.8 percent to Rs 1,221.95. Shares of engineering & construction firm L&T dropped 1.6 percent to Rs 1,388.40, after the company in its quarterly earnings announcement last week halved its order book forecast to 5-7 percent for the remaining portion of current fiscal year 2014-15 amid challenging economic environment.