The S&P BSE Sensex extended losses for the sixth straight session on Friday, falling 274 points amid fading expectations over the passage of Goods and Services Tax (GST) bill in the ongoing winter session of Parliament.
The Sensex closed at 25,036 points, down 1.08%, while the 50-share Nifty fell 89 points, or 1.16%, to end at 7,612.
"The bear grip tightened on Wednesday as indices continued to bleed further. Unabated selling pressure has now extended for the sixth consecutive trading session with BSE Sensex and the NSE Nifty plunging almost by 5% during this span," said Amar Ambani, Head of Research, IIFL.
Hopes on GST bill receiving an approval by the Rajya Sabha in the current session have faded following the controversy over the National Herald case. Congress accused the Modi government of following a 'political vendetta' against the Gandhi family.
The Delhi High Court has summoned Congress president Sonia Gandhi and her son Rahul Gandhi to appear before the court on 19 December on allegations of illegal acquisition of property worth Rs. 5,000 crore of the National Herald newspaper.
"Besides global cues, local sentiment remains subdued as the GST Bill, which is expected to get passed during this winter session is facing fresh trouble. The opposition raised their decibel protesting against Delhi High Court summons to Congress leaders, which led to Parliament adjournment," Ambani said.
Markets also remained under pressure ahead of the US Federal Reserve meeting next week. The US central bank which meets on 15-16 December is widely expected to raise interest rates for the time in more than seven years. It is well known that such a move could lead heavy outflows from emerging markets including India.
"The selling pressure intensified with Nifty just managing to hold on to the 7600 mark. Nifty is heading towards September lows of 7540 and if it is unable to find any meaningful support around those levels, no immediate respite is likely in the ongoing bear onslaught. Investors should remain cautious and increase their cash holding for better bargains in the coming days," Ambani added.
While all the BSE sectoral indices fell sharply, Metal, Energy and Telecom emerged as the biggest losers. Stocks of logistics companies came under severe selling pressure amid doubts over GST bill approval.
Mining stocks Coal India, Vedanta, Hindalco, and Tata Steel ended sharply lower due to ongoing rout in the global commodity markets. Oil stocks like ONGC, Reliance Industries, HPCL, BPCL also sold off as the global crude oil prices slipped below $40/barrel for the first time since 2009.