Indian equities slip 1% on weak global cues : 09 Feb 2016

Indian equities slid more than 1 % for a second straight session after a slump in Japan's shares and renewed concerns over a global economic slowdown spooked investors.Indian markets opened the day on a negative note and continued to trade in the red on the back of an overnight slide in US stocks and a steep selloff in Japanese shares on Tuesday.
The BSE Sensex closed 266 points, or 1.1 per cent, lower at 24,021 while the 50-share Nifty slumped 89 points, or 1.2 per cent, at 7,298. In the broader market, BSE Midcap and BSE Smallcap indices slid by 1.9 per cent and 1.3 per cent, respectively.
Japanese equities posted its biggest daily drop in nearly three years amid a sharp rise in the country's currency yen, which rose to its highest level against the dollar in more than a year. On Monday, the Dow Jones had lost 1.1 per cent, while the Nasdaq Composite index neared bear market territory. Last week, the US economy added fewer-than-expected jobs in January but the jobless rate hit an eight-year low, indicating a recovery in the labour market.
Globally, gold rallied for an eighth straight day after topping $1,200 an ounce for the first time since June on increased concerns about the health of the global economy, according to Bloomberg.
On Monday, India's gross domestic product expanded at a slower clip of 7.3 per cent in the third quarter of the current financial year compared with a growth of 7.7 per cent in the previous quarter. However, the estimated GDP growth for the whole of FY16 was revised to 7.6 per cent from 7.1-7.5 per cent earlier.
Foreign institutional investors sold shares worth over Rs 680 crore on Tuesday, while domestic institutions were net sellers to the tune of Rs 174 crore, provisional data showed. Sell-off by overseas investors, triggered by a drop in oil prices, have dashed hopes of any pre-budget rally in the Indian markets. In the year to date, FIIs have sold shares worth nearly $1,800 million.
"Corrective moves are usually steeper and that is what we are seeing in Nifty and majority of stocks these days. The excessive volatility is causing serious damage and our advice is to limit positions and avoid high beta counters for leveraged trades," said Jayant Manglik, president - retail distribution, Religare Securities.
European stocks fell for a seventh straight session amid renewed concerns over global growth. The FTSE, DAX and CAC were trading down anywhere between 0.8 per cent and 2.2 per cent at 6.15 India time.
In Asia, apart from Japan's Nikkei, Shanghai Composite, Jakarta Composite and Taiwan SE also saw a decline. Hang Seng and Straits Times, however, bucked the trend, gaining 0.5 per cent and 2.5 per cent, respectively.
market breadth was weak with 1831 (or 67 per cent) stocks declining and 779 stocks gaining. Two-third of Sensex components declined. With the exception of energy and pharma stocks, all other sectors traded in the red with IT, PSU banks and auto indices losing in the range of 1-3 per cent.
Indian equities slip 1% on weak global cues : 09 Feb 2016 Indian equities slip 1% on weak global cues : 09 Feb 2016 Reviewed by Money99 on 20:38:00 Rating: 5

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