Sensex drops 190 pts; Nifty ends below 12K
Mumbai, Jan. 31 (PTI): Market benchmark Sensex fell 190 points and the Nifty slumped below the 12,000 level on Friday after the Economic Survey suggested relaxing fiscal deficit target to revive growth.
Witnessing a sharp decline at the fag end of the session, the 30-share BSE Sensex settled 190.33 points, or 0.47 per cent, lower at 40,723.49. It hit an intra-day low of 40,671.01 and a high of 41,154.49.
Likewise, the broader NSE Nifty finished 73.70 points, or 0.61 per cent, down at 11,962.10.
ONGC was the top laggard in the Sensex pack, dropping 5.80 per cent, followed by PowerGrid, HCL Tech, TCS, Tata Steel and Reliance Industries.
On the other hand, Kotak Bank, SBI, IndusInd Bank, Bharti Airtel and Tech Mahindra ended with gains.
According to Deepthi Mary Mathew, Economist at Geojit Financial Services, the Economic Survey highlights the difficult fiscal situation, and possible crowding out of private investors due to the increased market borrowing by the government.
The Survey said the fiscal deficit target for current fiscal may need to be relaxed to revive growth.
All eyes have now turned to the Union Budget, scheduled to be presented on Saturday. Stock exchanges will be open for normal trading on Saturday.
Meanwhile, bourses in Hong Kong and South Korea ended in the red, while Japan rose 1 per cent. Markets in China remained closed.
Stock exchanges in Europe opened on a negative note.
Brent crude oil futures rose 0.38 per cent to USD 57.55 per barrel.
On the currency front, the Indian rupee appreciated 23 paise to 71.35 per US dollar (intra-day).
Gold declines INR 131, silver prices up INR 89
Gold on Friday declined by INR 131 to INR 41,453 per 10 gram in the national capital amid rupee appreciation, according to HDFC Securities.
The drop in the prices was against gold’s previous close of INR 41,584 per 10 gram.
Silver prices however, went up by INR 89 to INR 47,554 per kg from INR 47,465 per kg in the previous trade.
“Spot gold for 24 Karat in Delhi declined by INR 131 with rupee appreciation. The spot rupee recovered by around 12 paise against the dollar ahead of the Budget presentation,” HDFC Securities Senior Analyst (Commodities) Tapan Patel said.
The Indian rupee appreciated by 17 paise to 71.41 against the US dollar in early trade on Friday.
In the international market, gold and silver were trading with marginal gains at USD 1,577 per ounce and USD 17.86 per ounce, respectively.
Gold prices are fluctuating in the broad range of USD 1,560-1,580 as investors remained cautious about the spread of coronavirus across the world, he noted.