Mumbai, 08 Dec 2015: The prevailing logjam in Parliament coupled with prospects of a US rate hike and the decline in oil and gas stocks subdued Indian equity markets on Tuesday leading to a barometer index trading 154 points down during the late-afternoon session.
Initially, both the bellwether indices of the Indian equity markets opened on a negative note following their Asian peers.
Besides, prospects of a US rate hike prompted a selling frenzy among foreign investors and continued weakness in rupee’s value depressed investors.
In addition, oil and gas, energy and power companies stocks fell after a dip in global crude oil prices.
The barometer 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) shed 154 points or 0.60 percent during the late-afternoon session.
Similarly, the wider 50-scrip Nifty of the National Stock Exchange (NSE), was also trading in the red. It was lower by 39.15 points or 0.50 percent at 7,726.25 points.
The Sensex of the S&P Bombay Stock Exchange (BSE), which opened at 25,488.42 points, was trading at 25,391.04 points (at 3.00 p.m.) — down 154.07 points or 0.60 percent from the previous day’s close at 25,530.11 points.
The Sensex so far touched a high of 25,542.47 points and a low of 25,373.01 points during the intra-day trade.
Markets observers elaborated that the investors’ sentiments were subdued due to the logjam in parliament which has dimmed the prospects of the Goods and Services Tax (GST) bill getting passed during the winter session.
“The parliament’s logjam is a major dampener for the markets as it reduces the chances of the GST bill getting passed this session,” Anand James, co-head, technical research desk with Geojit BNP Paribas Financial Services, told IANS.
“The upcoming US rate hike, continued selling by the foreign investors in the Indian markets and the slump in oil prices which negatively impacted stock prices of oil and gas companies thinned investor participation.”
—
(IANS)
