Indian benchmark indices biggest intra-day fall in 11-years after touching peak

Xinhua News Agency | May 23, 2019 at 1:10 PM

MUMBAI, May 23 (Xinhua) -- Indian benchmark index Sensex ended with its biggest intra-day fall of 1,314 points from the day's and all time high on Thursday, as investors attention was moved to economic issues from the pro-incumbency mandate in favor of Narendra Modi's party.

The intra-day fall of Sensex is the biggest since Jan 21, 2008 in 11-years, which ended at 38,811.39 points after touching a high of 40,124.96 points, down 298.82 points. Another benchmark index Nifty lost 81 points to end at 11,657, down 384 points from its record high.

"It was a historic day for markets with both indices crossing new milestones. Markets were on the roller coaster ride and settled marginally lower in the end on intraday profit taking as the market up-move has been present since the exit polls and a large part of the potential gains were already priced in," Jayant Manglik, President of Retail Distribution, Religare Broking Ltd, said.

Twelve of 19 sectoral indices on the Bombay Stock Exchange ended lower led by the consumer goods index and metal index down 1.8 percent and 1.6 percent, respectively.

"After the initial euphoria on election results, the market gradually paired the gains as investors' focus turned towards the economic challenges and anxiety on how the government will handle these issues and boost demand and capital investments in the economy," said Rajnath Yadav, Senior Research Analyst at Choice Broking, a domestic stock brokerage house.

The fall in the benchmark indices also weakened the Indian rupee by 0.5 percent to end at 70.02 to the U.S. dollar after it appreciated in the early morning trade to 69.38 by 0.4 percent.