Sensex remains on the backfoot on Asia rout
08/07/2015 11:56

Tracking weak global cues, the D-Street benchmark Sensex shed nearly 369 points during the late morning deals on Wednesday amid across-the-board selling by investors tracking more heavy losses in Shanghai and on fears about Greece's future in the Eurozone.

At 11:19 hours, the 30-share barometer index of Bombay Stock Exchange, Sensex was at 27802.62, down by 369.07 points or 1.31 per cent while the NSE Nifty was at 8380.65, down by 130.15 points or 1.53 per cent.

A rout in other Asian markets with stocks in Shanghai plummeting by more than 5.5 per cent and on fears about Greece's future in the eurozone hurt domestic sentiment while caution prevailed ahead of the start of the April to June quarter corporate earnings season with IT major TCS set to unveil its Q1 report card tomorrow.

On the global front, Grexit bets rose after European leaders set a Sunday deadline for Greece to submit a new set of reforms or face the ugly consequences of being pushed out of the common currency, causing widespread panic among stock traders. German chancellor Angela Markel conceded that she wasn’t very optimistic over a solution to Greece’s five-year debt troubles while an event of a Greek exit from the euro threatens to undermine the credibility of the euro that was meant to be irreversible, casting doubts over the strength of the region’s economic, monetary and political integration.

Most all the sectoral indices were trading in the negative terrain, led by metal, auto and banking sector stocks.

Major show spoilers were Vedanta Ltd. (Rs. 143.00,-9.81%), Tata Motors Ltd. (Rs. 407.00,-5.74%), Hindalco Industries Ltd. (Rs. 101.20,-5.64%), Tata Steel Ltd. (Rs. 286.95,-3.53%), Bharat Heavy Electricals Ltd. (Rs. 252.55,-2.47%), among others.

Vedanta has fallen over 9 per cent on the Sensex and is the biggest loser currently.

The top gainers of the BSE Sensex pack were Hindustan Unilever Ltd. (Rs. 933.00,+1.02%), Oil And Natural Gas Corporation Ltd. (Rs. 306.00,+0.34%), Wipro Ltd. (Rs. 554.70,+0.23%), among others.

The market breadth, indicating the overall strength of the market, was weak. On BSE, out of the total 2317 shares traded, 679 advanced while 1565 shares declined and 73 remained unchanged.

The Sensex may remain in the red for the remainder of the session amidst heightened global risk aversion and caution ahead of India Inc.’s earnings numbers.