Global cues, eco data pull sensex down.

Mumbai: Selling across the board pulled the Sensex down on Monday by 253 points to 32,923 — a three-month closing low for the index. Dalal Street investors were kept on their toes by weak global cues, caution ahead of the US Federal Reserve’s meeting, India’s rising trade deficit and political jitters. With Tata Steel, Bharti Airtel and Wipro leading the session’s slide, 23 of the 30 Sensex stocks closed in the red. Investors’ wealth was down by nearly Rs 2 lakh crore with the BSE’s market capitalization now at less than Rs 146 lakh crore — its five-month low. According to BNP Paribas MF senior fund manager (equities) Karthikraj Lakshmanan, the news of a widening trade deficit in the backdrop of a disappointing purchasing managers’ index (PMI) survey further hit investor sentiment. PMI indicates the robustness of the economy in the coming months. Additionally, traders said that weak global cues — the Nikkei in Japan closed nearly 1% down, while the FTSE in the UK was more than 1% lower in early trades — took its toll on the Indian markets. Investors were also cautious ahead of the statement on interest rates in the world’s largest economy with expectations weighing in favor of four rate hikes, up from three earlier. In case the US Fed indicates an extra rate hike, that could lead to further weakness in emerging market stocks, market players said. Dealers said that continuous disruptions of Indian parliamentary proceedings and the move by one of the coalition partners of the ruling NDA for a no-confidence motion against the government had added to the weak investor sentiment. Source: timesofindia.indiatimes.com