Sensex dives over 160 pts after recent upsurge; weak global cues weigh

In a sharp contrast to the recent upward trend in the markets, the benchmark Sensex witnessed its first major fall in the ongoing week, tumbling over 160 points in late morning trades as weak global markets sentiment and dollar gaining strength against major currencies dampening the mood. [caption id=“attachment_2550606” align=“alignleft” width=“380”]  Reuters[/caption] After key US gauges dropped over 1-1.5 percent in overnight trades on Thursday, selling frenzy subsequently engulfed other Asian indices which were down around 0.7 percent each. Mirroring the fall, the BSE Sensex slumped 166 points to touch a low of 25637.75 on broad-based selling in several frontline stocks. At 11.50 am, the 30-share BSE S&P Sensex was down 145.84 points, or 0.6 percent lower at 25,657.94. The broader 50-stock CNX Nifty also lost 43.65 points, or 0.6 percent at 7,800.70. However, despite the weakness in key benchmark indices, broader markets was positive with 1,252 stocks advancing against 1,072 declines on BSE, mainly due to continuing uptrend in second rung stocks. As a result, BSE mid-cap index rose 0.5 percent while BSE small-cap index was up 0.2 percent in a falling market. Before the today’s fall, the index had a good run in last four sessions, surging over 750 points in as many sessions on the back of firm global market cues and short-covering in the run-up to the Fed rate hike decision yesterday, which came on expected lines. However, analysts say the US Fed rate hike now behind us, focus has once again shifted to sluggish global economic activity, China’s sedate demand and its impact on commodity prices that are hovering at multi-year lows. Among the laggards, shares of Vedanta dropped 1.9 percent to Rs 85.50, Infosys shed 1.3 percent to Rs 1,092.30, Lupin fell 1.2 percent to Rs 1,801.15, Bajaj Auto declined 1.2 percent to Rs 2,494.60 and Reliance Industries was down 1.1 percent at Rs 997.35. On the domestic front, inability of the government to reach a consensus with the opposition on the passage of the GST Bill in the current session of Parliament, too, has been a major deterrent for the markets. Although, the recent economic readings have been a mixed bag, persisting fall in export numbers and the steady rise in inflation level for November has prompted investors to exercise caution, say market experts.