Indian Stock Market Gone Distinctively Weak

The Sensex had been considerably rising for the last three days. The rising streak today broke with the Sensex grabbing 317 points and had the biggest fall since the last nine months. The fall affected the all round selling of the Indian market among the weak worldwide cues. The BSE (Bombay Stock Exchange) tumbled drastically to 1.62 percent and stabled at 317.39 points and the Nifty was down by 91 points and closed at 5,852 points.

The experts are threatened that the US Federal Reserve will withdraw back the monetary investment made by them. This has put a fear in the mind of the experts including the flowing of funds across the asset classes and the emerging markets. The experts are also worried that since the last couple of months, the Indian stock market has been pumped handsomely by the FIIs (Foreign Institutional Investment) and if there are any reversals made by them will leave the Indian market susceptible.
According to Dipen Shah, Head - PCG Research, Kotak Securities, the Indian stock market had been at its weakest today and closed at the lowest for the current year 2013. It also made the Indian market highly volatile which made the India Vix climb to nine per cent and close at 16.94 points.

The Foreign Institutional Investors were the gross buyers of equities worth Rs 1,214 crore whereas the domestic investors were the gross buyers of equities worth Rs 229 crore. On the BSE (Bombay Stock Exchange), the domestic retailers bought equities net worth Rs 42 crore. The Sun Pharma and the Cipla were the only companies that gained Nifty whereas the losers pack consisted of ICICI BankSesa Goa, R-Infra, Tata Steel and Jindal Steel. The GAIL was the only one that remained unaffected with the change.

Gold Went Down

The stock market experts are worried that with the US Federal Reserve backing out with their monetary stimulus and with no signs of the European economy recovering, the gold and the prices of other metals also dipped. The standard and the pure gold prices fell down by Rs 225 each to Rs 29,220 and Rs 29,355 per 10 grams respectively in the Mumbai spot market. Silver also took the hit and went down by Rs 960 to Rs 54,735 per kg. Since the start of this month, the yellow metal had been considerably falling down. It bounced back every now and then and eventually dipped down to Rs 30,000 earlier this week.

Coming to the commodity futures market, for the April delivery, the gold went down to the day’s lowest to Rs 29,263 but recovered and closed at Rs 29,472. The gold went down by $26 in the commodity division of the New York Mercantile Exchange, the Comex. This is the lowest in the last seven months of $1,578 a troy ounce.

According to the Director of the Karvy Commodity, Sushil Sinha, the bullion market worldwide had a great impact of the discussion of the US Feds rolling out their stimulus package. Last year, in September, the makers of the US Federal Reserve Policy committee to buy securities worth $40 billion every month.