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| Edited By: |Source: PTI |Updated: Apr 14, 2018, 02:06 AM IST
The BSE benchmark Sensex today slumped 111 points, declining for the second straight session, as China's key interest rate hike and a strengthening dollar rattled investor sentiment.
Sensex decline was in line with sluggish Asian markets, as sudden rate hike on Tuesday by the Chinese central bank raised apprehensions that the move could adversely impact overall fund flows.
China's apex bank increased key rates by as much as 25 basis points for the first time in three years.
The Bombay Stock Exchange's 30-share barometer, which had lost 186 points on Tuesday, ended the day at 19,872.15, down another 110.98 points, or 0.59% - its lowest close since September 29, when the index had settled at 19,956.24.
"The market was surprised by the sudden rate hike by China, and profit booking also played a major role in dragging down the Sensex," Geojit BNP Paribas research head Alex Mathew said.
On the National Stock Exchange, the 50-share Nifty Index fell below the 6,000 level to close at 5982.10 points, down over 45 points.
The metals sector emerged as the worst performer, with Sterlite Industries falling by 3.54%. It was the top loser on the Sensex today. Besides, Tata Steel and aluminium producer Hindalco declined by 2.76% and 1.72% respectively.
"Metal stocks were down because of strengthen in dollars, as they are inversely related with each other. Its a correction going for the sector," Kotak Life managing director Gaurang Shah said.
Analysts also said the on-going Rs15,000-crore Coal India's public offer could be sucking out liquidity from the system, leaving lesser money with investors.
Realty and FMCG were other sectors which saw selling pressure. Corporate giant ITC also ended the day with a fall of 1.26%, while, real estate major DLF slumped 1.42%.
The other major losers include HDFC (2.76%), HDFC Bank (1.21%), and telecom giant Bharti Airtel (1.66%).
Among the 13-sectoral indices on the BSE, only three ended in the positive territory, while remaining ten closed the day in the red.
Out of the 30 Sensex shares, 21 closed in the negative terrain, while the remaining nine ended with gains.
In the gainers pack, power firm Tata Power registered the biggest hike of 1.16% -- the most in the Sensex pack, followed by another power entity NTPC, up 0.9%.
Most Asian stocks closed in the negative territory. Japan's benchmark Nikkei Index fell by 1.65% and Hang Seng was down 0.87%. However, the Shanghai index closed marginally up.
The European markets opened showed mixed trend as the FTSE 100, as well as CAC 40 were trading in the positive terrain, while S&P was down (0.77%).
