14.5.13

Sensex snapshot


A wider trade deficit, RBI probe on large private banks and fears of US Federal Reserve slowing down its money machine spooked investors on Monday. Dalal Street, which was lacklustre since morning, fell sharply in late afternoon trades, pulling the Sensex down 430 points, or 2.14% — its biggest single-day drop since May 2012. The benchmark indices, Sensex and Nifty, which had hit 28-month highs last week, fell below their psychological levels of 20,000, and 6,000, respectively.The trade deficit for April widened to $17.8 billion from $10.31 billion in March, as India imported $7.5 billion of gold and silver in the past month.
Many fund managers are concerned about the current market valuations, with the Sensex trading at 13.8 times to its one-year forward price-to-earnings ratio, compared with 10.6 for the MSCI Emerging Markets Index.


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