Sensex at 6-month lows, Nifty surrenders 8,100—mark Thursday Nov 17,2016

Market benchmark Sensex fell over 71 points in choppy trade today to hit about six-month low of 26,228, falling for the fourth straight session, amid lingering worries about the economic impact of demonetisation. 

The Nifty too dipped below the key 8,100—level. 

Sentiment also took a hit on sustained foreign capital outflow from emerging markets, including India, and the dollar climbing to its highest mark in over 13 years. 

Trading sentiment remained distinctly weak due to cash crunch arising out of the government’s move to demonetise Rs. 500 and Rs. 1,000 notes to flush out black money amid concerns about its impact on small and medium—sized businesses which largely run on cash

After opening a shade higher at 26,304.90, the Sensex advanced to the day’s high of 26,449.87, largely on bargain—buying by participants, including sustained pumping of funds by domestic financial institutions. 

However, it turned volatile largely in tandem with overseas markets and slipped into negative terrain to hit a low of 26,155.40 before settling 71.07 points, or 0.27 per cent, lower at 26,227.62, a level last seen on May 25, 2016. The Sensex had lost 1,218.99 points in the previous three sessions. 

The Nifty, after shuttling between 8,151.25 and 8,060.30, concluded 31.65 points or 0.39 per cent down at 8,079.95, a level last seen on May 26, 2016, when it closed at 8,069.65. 

Asian markets

Hong Kong's benchmark Hang Seng Index edged lower on Thursday, with continued strength in the US dollar hurting sentiment in Asia, but the decline was limited by strength in the services sector. The benchmark Hang Seng index fell 0.1 per cent, to 22,262.88, while the China Enterprises Index lost 0.4 per cent, to 9,326.54 points.

Japanese stocks ended marginally higher as stocks were bought after the central bank's first fixed-rate debt purchasing operation weakened the yen. The Nikkei ended flat at 17,862.63 in choppy trade, while the Topix rose 0.1 percent to 1,423.08. The JPX-Nikkei Index 400 also gained 0.1 percent, to 12,786.58.