Nifty500 hit a three month low on Tuesday whereas the domestic market hit a two month low. The reason for the drop was the weak corporate earnings and continuous selling by foreign portfolio investors. That’s the reason markets suffered a blow.
If you check the frontline indices and SGX Nifty live, the S&P BSE Sensex hit a low of 37,359, whereas the Nifty500 hit a low of 11,073. Also weakness in metal and auto counters and banking and financial stocks dragged down the market.
But the market is hopeful as it’s looking forward to the decision of US Federal Reserve policy. Also, the decision will be out on Wednesday. The S&P BSE Sensex lost 289 points, or 0.77% and closed at 37,397 level.
Only 8 out of the thirty stocks ended in Green. Bharti Airtel, TCS, HCL, and L &T Managed to hold the profits. But on the other hand Hero Motorcorp, YES bank, IndusInd Bank, and State Bank of India slipped down.
Nifty50 slipped below its 200 –DMA level intra day to close below the psychological level of 11,1000. And it settled at the 11,085 mark and got down by 104 points. That is a 0.93% low.
Mostly all the sectors ended up in red except the IT Sector. Also the Nifty PSU bank took the hit and went down by 5%, followed by Nifty Metal index which is down by 3.25%. And the Nifty Auto Index and Nifty Bank, both are down by 2%, and 1.5 % respectively.
The shares of Café Coffee Day enterprises plunged down to an all time low of 20% because of the incident concerning the founder. It is news that V G Siddhartha, the founder of the CCD went missing on Monday night.
He is alleged to have jumped off a bridge in Mangaluru. And he did so because of the pressure from other lenders who pushed him to buy his shares back. He admitted it was tremendous pressure, before he went missing.