Higher current account deficit (CAD) and continuing political uncertainty at the Centre spelled doom for the share market on Monday as Sensex plunged 430 points leaving investors poorer by Rs 1 lakh crore.
April trade deficit at $17.8 billion weighed so heavily on the stock market that a fall in retail inflation to 9.4 per cent didn’t add to any optimism in the bourses. Sensex ended 430.65 points lower at 19,691.67, which is the biggest fall since Sensex lost nearly 478 points on February 27, 2012. Similarly, Nifty also slumped by 126.80 points to end below 6K-mark at 5,980.45, while MCX-SX flagship index SX40 closed 228.64 points lower at 11,662.34 points.
“The broad-based selling across sectors indicates some caution and profit-booking at higher levels, despite the better-than-expected April CPI of 9.39 per cent. The recent fall in the rupee, a worse-than-expected April trade data and weak Asian/European markets soured sentiments,” said Dipen Shah, head of Private Client Group Research, Kotak Securities.
Selling was seen across-the-spectrum as all 13 sectoral indices closed with losses in 0.94-3.17 per cent range with FMCG, capital goods, metal and auto shares leading downslide.