Money Dec 21, 2012
The Indian equity markets extended losses to a second straight trading session on Friday on the back of sell-off witnessed in equity markets around the globe. The 30-share BSE Sensex fell 211.92 points to close at 19,242, and Nifty slipped 68.70 points to end below 5,850 level at 5,847.7.
This is the biggest Sensex loss since 8 October.
"Traders preferred to book profit and turn cautious after the US House of Representatives Speaker John Boehner said that a proposal to avert automatic spending cuts and tax increases failed to gather enough support, raising concerns that US may slip into recession," said IIFL in a research note.
Meanwhile, Standard and Poor's expects India to grow by 6.5% during 2013.
Dhirendra Tiwari of Antique Institutional Equities told CNBC-TV18 expectation of policy rate cuts, some push by the government on the infrastructure and political stability would support the market.
Stocks from Realty, Metal, Health Care and Power counters led the losers pack. Even Information Technology stocks, which staged resilience for almost entire trading session, surrendered to the profit booking in the last hour of trade.
RIL, Infosys,, Wipro, SBI, ICICI Bank, Tata Steel, Bajaj Auto, Sun Pharma, Cipla, Hero MotoCorp, ONGC, Dr Reddys Lab, Tata Motors, Hindalco Inds, Mahindra & Mahindra NTPC, Bharti Airtel, BHEL, HDFC were among the losers in Sensex and Nifty.
On the global front, world shares dipped following the collapse of the Republicans' 'Plan B' vote in the House of Representatives, aimed at offering a solution to the U.S. 'fiscal cliff' - a series of tax increases and spending cuts that are set to kick in at the start of next year. With time running short to find a solution before the holidays, the White House, however, said it would work with Congress to avoid the 'cliff' and that President Obama was hopeful a deal can be reached quickly.
Stocks in news
Bharti Airtel declined 2.7 percent after CBI filed charges as part of a probe into alleged corruption in the allocation of mobile airwaves a decade ago.
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