MUMBAI: Across the board selling pulled the sensex down by 821 points on Tuesday to a close below the 79,000 mark, as lower-than-estimated quarterly numbers from corporates and selling by foreign funds weighed on investor sentiment.
The sensex, after opening flat and rallying more than 300 points in early session, faced strong selling pressure and closed at 78,675 points — a level not seen since early Aug this year. Banking stocks were the most affected, while IT stocks showed good resistance.
According to Vinod Nair of Geojit Financial Services, foreign fund-triggered selling pressure continued to impact the domestic market. After markets closed, the retail inflation print for Oct showed a jump to 6.2% — above RBI’s tolerance zone of 2% to 6%, due to which economists and analysts feel that a rate cut in the current fiscal may not be possible. This could further dampen investor sentiment, market players feel.
The day’s slide in the market left investors poorer by Rs 4.5 lakh crore, with BSE’s market capitalisation now at Rs 445.6 lakh crore.
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