SENSEX BACK IN THE RED
STREET SIGNS Bear grip is back as nervous investors resort to panic selling
The Sensex tumbled 318 points to close at 25,714.66, the fourth fall in five sessions, as fresh steps by China to stabilise its economy failed to revive market sentiment. Shaky sentiments were seen in gold and crude with the precious metal falling by over Rs 300 while crude rose marginally to $43.45 a barrel on the Brent index.
MUMBAI: Tuesday’s relief rally proved to be short-lived as stock, currency and bullion markets came under intense selling pressure on Wednesday, after a China interest rate cut designed to soothe fears about stalling growth in the world’s second-largest economy failed to convince investors.
The Sensex fell 318 points, or 1.22%, to 25,715, while the rupee weakened by four paise to end at 66.14 against the dollar. The Nifty declined 88.25 points, or 1.13%, to 7,792.
Standard gold slid by ` 330 to close at ` 27,030 per 10 grams and silver plunged by`530 a kg to close at ` 34,970, tracking losses in other markets. In London, spot gold fell 0.6% to $1,133.56 an ounce.
Oil prices also stayed near sixand-a-half year lows with London Brent crude at $43.21 a barrel.
The Chinese government had on Tuesday cut interest rates by 25 basis points, which was not enough to boost the economy.
“When an earthquake happens, aftershocks are bound to happen. Monday was the day of the earthquake. Now, you will keep seeing such shocks,” said Arun Kejriwal, founder, Kris Capital.
Global markets were bearish with the Hang Seng falling 1.5% while the Shanghai Composite Index down by 1.3%.
However, most experts said this was a good opportunity to build positions. “Any extraneous development that gives an opportunity to enter India’s long-term bull market should be lapped up,” said Aashish Somaiyaa, CEO, Motilal Oswal AMC. “The market fall has been due to global macroeconomic concerns, but when the dust settles, India is most likely to stand out as an investment opportunity. ”