MUMBAI: As traders and investors on Dalal Street turned cautious ahead of US Federal Reserve's decision whether to raise rates or not in the world's largest economy, the sensex closed 208 points lower at 25,044.
www.sevagiri.com
In intra-day trades, the index had briefly dipped below the psychologically important 25K level. In about nine months, the sensex has lost 5,000 points from its all-time peak on March 4. As a result of this slide, investors are now poorer by a little over Rs 10 lakh crore with BSE's market capitalisation currently at Rs 95.13 lakh crore.
In Friday's market, rate sensitive sectors like banks and real estate led the slide. However, after consecutive sessions of selling, foreign fund were net buyers on Friday with a net inflow figure of Rs 254 crore, BSE data showed. The slide in the banking and real estate stocks came on concerns that if the US Fed decides to raise rates on December 16, there could be substantial foreign fund outflow from India, which, in turn, could lead to hike in interest rates in the economy. Banks, financial services firms and companies from the rate sensitive sectors usually see rise in demand for the good and services when rates are lower and falling demand when rates rise.
A comment by the RBI governor, cautioning corporates about excessive borrowing, added to market's market's woes. "The RBI governor has recommended corporates to avoid over borrowing, which triggered the panic selling in banking counters, alongside other rate sensitive counters," said Jayant Manglik, president, retail distribution, Religare Securities .
www.sevagiri.com
In intra-day trades, the index had briefly dipped below the psychologically important 25K level. In about nine months, the sensex has lost 5,000 points from its all-time peak on March 4. As a result of this slide, investors are now poorer by a little over Rs 10 lakh crore with BSE's market capitalisation currently at Rs 95.13 lakh crore.
In Friday's market, rate sensitive sectors like banks and real estate led the slide. However, after consecutive sessions of selling, foreign fund were net buyers on Friday with a net inflow figure of Rs 254 crore, BSE data showed. The slide in the banking and real estate stocks came on concerns that if the US Fed decides to raise rates on December 16, there could be substantial foreign fund outflow from India, which, in turn, could lead to hike in interest rates in the economy. Banks, financial services firms and companies from the rate sensitive sectors usually see rise in demand for the good and services when rates are lower and falling demand when rates rise.
A comment by the RBI governor, cautioning corporates about excessive borrowing, added to market's market's woes. "The RBI governor has recommended corporates to avoid over borrowing, which triggered the panic selling in banking counters, alongside other rate sensitive counters," said Jayant Manglik, president, retail distribution, Religare Securities .
Source - TOI
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