Sensex retreats for 3rd day as global cues remain weak

Global growth woes and disappointing domestic earnings continued to weigh on equities for a third straight session as the benchmark Sensex tumbled 127.97 points to an over three-week low of 25,101.73 with commodity and industrial stocks taking a big hit. Broader markets also performed weak with the BSE mid-cap index ending 1.22 per cent lower and the small-cap falling 0.98 per cent.

Moreover, the rupee, which weakened by more than 10 paise against the dollar also had its bearing on the market. “Nervousness in the global market led by a reduction in GDP forecast and an instability in oil prices is pouring volatility in the domestic market,” said Vinod Nair, Head of Research at Geojit BNP Paribas Financial Services.

From industrial space, Adani Ports and Special Economic Zone was the worst-hit, down by 11.98 per cent at Rs 207.65.

Tata Motors slumped 6.76 per cent to Rs 381.80 after reports said the automaker’s luxury unit Jaguar Land Rover’s sales fell in the US last month.

A monthly PMI survey, meanwhile, showed that private sector activity in the country eased in April amid slower expansion in new business inflows in services sector while order books of manufacturers also broadly stagnated.

On the day, Sensex resumed lower at 25,210.87, but later recovered briefly to touch a high of 25,245.70. However, higher levels could not be sustained and the index slided to hit a low of 25,061.04 before winding up 127.97 points or 0.51 per cent down at 25,101.73, its lowest closing since April 11.

The gauge has now lost 504.89 points in three sessions. The NSE Nifty also remained under pressure and dropped by 40.45 points or 0.52 per cent to close at 7,706.55.

In commodity space, base metals retreated heavily at the London Metal Exchange (LME) on demand concerns after a private Chinese factory gauge showed contraction for a 14th month and the US manufacturing growth cooled.

Tata Steel fell 5.60 per cent to Rs 328.95. Key regional markets remained lower as indexes in Hong Kong, Singapore, China, South Korea and Taiwan moved down by up to 1.36 per cent. Japanese shares were closed for trading on account of a public holiday. In Europe, France, Germany and the UK based indexes fell by up to 1.20 per cent.