Sensex Ends 470 Points Lower; Tata Motors & Tata Steel Fall 6%

Indian share markets witnessed huge selling pressure today, in line with global equities, and fell on to bearish territory.

After opening on a flat note, benchmark indices slipped into the red and extended losses amid heavy selling in metal and healthcare stocks.

That apart, expectations that the Reserve Bank of India (RBI) may set out proposals in a discussion paper this week, recommending that bigger shadow banks hold a share of deposits in cash, gold or government securities, weighed on financial stocks.

At the closing bell, the BSE Sensex stood lower by 470 points. The NSE Nifty ended down by 152 points.

Reliance Industries was among the top gainers today. ONGC, on the other hand, was among the top losers today.

SGX Nifty was trading at 14,255, down by 205 points, at the time of writing.

The BSE Mid Cap index ended down by 2%. The BSE Small Cap index ended lower by 1.9%.

Sectoral indices ended on a negative note with stocks in the healthcare sector and metal sector witnessing maximum selling pressure.

Shares of HDFC Bank and Indian Energy Exchange hit their respective 52-week highs today.

Asian stock markets ended higher today as investors cheered better-than-expected gross domestic product (GDP) data pointing to a strong recovery in China.

As of the most recent closing prices, the Nikkei ended down by 1% and the Hang Seng ended up by 1%. The Shanghai Composite ended up by 0.8%.

US stock futures are trading lower today. Nasdaq Futures are trading down by 16 points (down 0.1%), while Dow Futures are trading down by 65 points (down 0.2%).

The rupee is trading at 73.29 against the US$.

Gold prices are trading up by 0.1% at Rs 48,768 per 10 grams.

This is the first time in 25 years that a benchmark index in India, the BSE Sensex, is trading at a P/E multiple of 40x. The last time the Sensex breached this multiple in October 1994.

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Disclosure: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research ...

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