'Muhurat' trading: This proved a dampener for share market
| Oct. 19, 2017, 10:19 p.m.
Mumbai, Oct 19: Samvat 2074, marking the start of the Hindu New Year on Thursday, saw both key indices of the Indian equities markets recede as rise in geo-political tensions in the Korean peninsula along with fears of higher non-performing asset (NPA) levels of the domestic banking sector eroded investors' risk-taking appetite.
The hour-long session is held every year on Diwali to mark the start of the Hindu New Year.
According to market observers, the special session to mark Samvat 2074, witnessed heavy selling pressure in the banking, metals, auto and oil and gas stocks.
The Nifty 50 of the National Stock Exchange (NSE) receded by 74.95 points or 0.73 per cent to 10,135.90 points.
Similarly, the 30-scrip sensitive index (Sensex) of the BSE plunged during the intra-session trade.
The S&P BSE Sensex, which opened at 32,656.75 points, traded at 32,373.98 points (at 7.15 p.m) -- down 210.37 points or 0.65 per cent from Wednesday's close at 32,584.35 points.
The Sensex touched a high of 32,663.06 points and a low of 32,341.10 points during the intra-session trade.
In Samvat 2073, the barometer index (BSE Sensex) had gained 4,654 points or 16.6 per cent whereas the NSE Nifty 50 had risen by 1,585 points or 18.4 per cent.
"In line with the festive mood the key indices opened higher but soon pared their gains," Deepak Jasani, Head - Retail Research, HDFC Securities, told IANS.
"Gains in telecom shares were offset by losses in banking sector stocks and metal stocks," he said, adding that investors continued to be worried over an expected rise in the slippages and NPA levels.
"Samvat 2074 opened on a flat and then plunged into the red, following global trends, as tension have risen once again between North Korea and the US," Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.
On Wednesday, a massive sell-off in the banking sector stocks had pulled the key Indian equity indices lower. The 30-scrip Sensex had closed 24.81 points or 0.08 per cent lower and the Nifty 50 closed 23.60 points or 0.23 per cent down.
The special trading session held every year on Diwali is considered to be auspicious for stock market trading. It is believed that the "Muhurat" trading on this day brings wealth and prosperity throughout the year.
This ritual has been observed for ages by the trading community.