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Market drops on negative European stocks

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Capital Market
Last Updated : Oct 06 2016 | 4:01 PM IST

Key benchmark indices dropped led by losses in index heavyweights ITC and Infosys. The S&P BSE Sensex fell 114.77 points or 0.41% at 28,106.21, as per the provisional closing data. The Nifty 50 index fell 34.40 points or 0.39% at 8,709.55, as per the provisional closing data. After remaining in positive terrain till afternoon trade, the key indices dropped in negative zone thereafter as European stocks declined.

The Sensex fell 189.76 points or 0.67% at the day's low of 28,031.22 in late trade, its lowest level since 3 October 2016. The barometer index rose 107.58 points or 0.38% at the day's high of 28,328.56 in afternoon trade. The Nifty lost 59.30 points or 0.68% at the day's low of 8,684.65 in late trade, its lowest level since 3 October 2016. The index rose 37.20 points or 0.42% at the day's high of 8,781.15 in afternoon trade.

The market breadth indicating the overall health of the market turned negative from positive in mid-afternoon trade. On BSE, 1,506 shares declined and 1,366 shares rose. A total of 131 shares were unchanged. The BSE Mid-Cap index was provisionally off 0.56%. The BSE Small-Cap index was provisionally off 0.48%. The fall in both these indices was higher than the Sensex's decline in percentage terms.

The total turnover on BSE amounted to Rs 3662.48 crore, lower than turnover of Rs 3914.82 crore registered during the previous trading session.

Index heavyweight and cigarette major ITC lost 0.87% to Rs 238.20. The stock hit a high of Rs 242 and low of Rs 236.20 in intraday trade.

Index heavyweight and software major Infosys lost 1.39% to Rs 1,026.65. The stock hit high of Rs 1,041.15 and low of Rs 1,025 in intraday trade.

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Most realty stocks edged lower. Omaxe (down 2.28%), Godrej Properties (down 0.37%), Housing Development and Infrastructure (down 3.2%), Unitech (down 0.83%), and Parsvnath Developers (down 2.26%) rose. DLF (down 1.7%) and Indiabulls Real Estate (down 5.89%) fell. Oberoi Realty (up 3.34%), D B Realty (up 4.48%), Sobha (up 1.97%), Prestige Estates Projects (up 0.65%) rose.

In overseas stock markets, European shares retreated in chopy trade hit by worries that the European Central Bank might wind down the pace of bond-buying before the end of its asset-purchase programme. Asian stocks rose as a healthy US economic report and rising oil prices overnight bolstered investor optimism. Markets in mainland China were closed for a weeklong holiday. US stocks closed with decent gains yesterday, 5 October 2016 on positive economic data. Activity at US service companies expanded in September at the fastest pace in nearly a year, according to a private report. The Institute for Supply Management's services index jumped to 57.1 last month, its highest since October last year, adding to evidence that the world's biggest economy is strengthening and raising expectations the Federal Reserve will soon raise rates from ultralow levels.

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First Published: Oct 06 2016 | 3:37 PM IST

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