Indian shares fell sharply on Thursday, as traders wound up their long positions on the settlement day of the July F&O series. Concerns over deficient monsoon rains, apprehensions that the government will hold off on widely-anticipated fuel subsidy and retail reforms because of renewed oppositions from coalition allies, a falling rupee and stubborn inflation also prompted investors to move to the sidelines.
The benchmark BSE Sensex ended the session down about 206 points or 1.22 percent at 16,640, while the broader Nifty index fell by 67 points or 1.3 percent to 5,043. Second-line stocks underperformed, with the BSE mid-cap and small-cap indexes ending down over 2 percent each. Realty, capital goods, banking, FMCG and IT stocks bore the brunt of the selling.
On the global front, other Asian markets turned in a mixed performance as positive sentiment generated from comments by a European policymaker on banking license for the ESM was offset by Moody's rating action on German banks.
European stocks reversed early losses and the Dow futures signaled a higher start on Wall Street after ECB governor Mario Draghi said the central bank will do whatever is needed to preserve the euro.
by RTT Staff Writer
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