Indian Equities post biggest fall since September 2011 - ICICI Bank : Treasury Research

Indian equities ended lower today, tracking weak global cues. The recent measures taken by the RBI to moderate capital outflows, including a reduction in companies' overseas direct investment limit, weighed on sentiment. Further, sharp depreciation in the Rupee intraday fuelled speculation of a possible rate hike by the RBI in its next policy meeting, thereby leading to losses in rate-sensitive stocks. The Bank Nifty plunged by 5.7% today. Other major laggards were realty and consumer durable stocks. The benchmark indices posted their biggest intraday fall since September 2011. The Sensex ended lower at 18,598.19 (-3.97%) and Nifty closed at 5507.85 (-4.08%).

The BSE Bankex ended lower at 10800.62 (-5.55%). SBI ended lower at INR 1571.20 (-3.32%) and ICICI Bank ended down at INR 858.60 (-5.02%).

Asian equities ended in the red today, extending morning session's losses. Nikkei ended lower by 0.75% dragged by losses in exporters' stocks. Hang Seng and Shanghai Composite ended lower by 0.10% and 0.64% respectively, weighed by losses in health care stocks. Australia's ASX also ended down by 0.75%, as lower than expected Q2 earnings results by index major Australia and New Zealand Banking Group weighed on sentiment. Kospi closed lower by 0.20%.

Source : Equity Bulls

Keywords