Markets under pressure, Sensex closes 168 points down

Indian equities markets continued to reel under selling pressure after making robust gains in the first two months. A benchmark index Thursday closed 168 points down with traders off-loading realty, capital goods and banking stocks.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 17,714.62 points, closed at 17,583.97 points, 168.71 points or 0.95 percent down from its previous close at 17,752.68 points.

The 50-scrip S&P CNX Nifty of the National Stock Exchange also ended lower at 5,339.75 points, down 45.45 points or 0.84 percent from its previous close.

Broader markets were also in the red, with the BSE 500 index closing 0.7 percent lower. The BSE midcap closed 0.53 percent down, while the BSE small cap indices ended 0.38 percent lower.

The gainers on the Sensex were DLF, up 4.64 percent at Rs.1,314.55; Hindalco, up 1.35 percent at Rs.150.65; HDFC, up 0.98 percent at Rs.669.65; and Tata Power, up 0.91 percent at Rs.115.90.

Major losers included DLF, down 5.17 percent at Rs.214.65; M&M, down 3.67 percent at Rs.681.65; BHEL, down 2.97 percent at Rs.299.05; and NTPC, down 2.54 percent at Rs.176.25.

The market breadth was negative, with 1,264 stocks advancing, 1,580 on the decline and 111 unchanged.

Overseas funds, the primary catalyst for the dramatic rise in Indian equities in 2012, bought stocks worth $132.91 million Thursday, according to data available with the Securities and Exchange Board of India (SEBI).

Foreign institutional investors (FIIs) have put in more than $7 billion since the start of the year, having bought equities worth $2.03 billion in January and over $5 billion in February.

Asian markets closed in the red with investors worried after US Federal Reserve chief Ben Bernanke told a congressional hearing that flat incomes and still-high unemployment would likely limit growth this year to 2.25 percent in the world’s largest economy.

The Japanese Nikkei moved down 0.16 percent to end at 9,707.37 points, while Hong Kong’s Hang Seng closed 1.35 percent lower at 21,387.96 points.

The Chinese Shanghai Composite index was ruling 0.1 percent down at 2,426.11 points.

European markets too were trading quiet.

Britain’s FTSE 100 was trading 0.52 percent higher at 5,902.07 points. The German DAX was trading 0.45 percent up at 6,888.78 points.

The French CAC 40 was up 0.28 percent at 3,462.26 points.