Late selling drags Sensex to a 13-month low, ends 243 pts down

Mumbai: Growing uncertainty in global equity markets once again kept local investors on the edge, pushing key domestic equity indices to 13-month lows at close despite showing positive signs of revival in early trades. Dragged down by weakness in Asian and European markets, domestic stocks lost momentum in the second half after sailing in positive territory for better portion of the first half of trading session. In fact, the Sensex had jumped 243 points to touch the day’s high of 25,939.37 in early trades, as investors cheered the government’s decision to accept the recommendation of a high level panel that minimum alternate tax (MAT) should not be imposed on overseas portfolio investors retrospectively. [caption id=“attachment_2418348” align=“alignleft” width=“380”] Reuters[/caption] However, stocks were once again subject to a topsy-turvy ride with heavy selling in banking, power, commodities and auto stocks pulling down the index to the day’s low of 25,395.09, down 301 points. Finally, the 30-share BSE S&P Sensex ended the session at 25,453.56, dow 242.88 points, or nearly 1 percent from previous close. In last three sessions, the Sensex has lost nearly 750 points in tandem with bearish global markets sentiment and nagging worries over the weakening global economic health. The broader 50-share CNX Nifty ended lower at 7,717, down 68.85 points, or 0.9 percent. Market breadth ended slightly lower with 1,394 stocks declining against 1,221 advances on BSE. Overseas, Chinese equities extended their losses with Hang Seng ending 1.2 percent lower and Shanghai Composite falling 0.2 percent. Chinese equity markets will remain closed for trading over the next two days. Key European indices regained their lost ground to trade 0.3 percent higher in mid-day trade. Several local frontline shares came under hammering, extending the fall for third straight session. Among the laggards, shares of BHEL slumped 5.1 percent to Rs 206.55, M&M faltered 3.6 percent to Rs 1,134.95, SBI declined 3.5 percent to Rs 230.60, ONGC lost 3.5 percent to Rs 225.55, Coal India shed 3.1 percent to Rs 344.50 and NTPC eased nearly 3 percent to Rs 116.65. Others such as HDFC, Axis Bank, Hindustan Unilever, ICICI Bank, Cipla, Bajaj Auto, L&T and HeroMoto Corp were down around 2-3 percent each.