Tuesday , July 01, 2008 at 1707 hrs
Benchmark indices Sensex and Nifty on Tuesday breached their psychological 13K and 4K levels by losing nearly 500 points and more than 140 points respectively to close at their 16-month low levels on relentless selling pressure on heavyweight stocks.
The 30-share Sensex on the Bombay Stock Exchange lost 499.92 points at 12,961.68, a level last seen on February 28, last year. The index touched the day's low of 12,904.09 and a high of 13,613.82 points, reflecting volatility in trade.
Similarly, the wider Nifty on the National Stock Exchange dropped 143.80 points at 3,896.75. The index, which had broke 4,000 level at early trade, cracked another resistance level of 3,900 on panic selling.
In last three straight sessions, the Sensex had lost over 1,460 points as investors resorted to hectic selling on worries of political uncertainty, inflation and high oil prices.
"Stock markets are have been badly hit the ongoing tussle between the ruling party and its key allies over the nuclear deal amid crude oil surging to records," an NSE broker Rajiv Malik. Besides, fears of inflation rising further also haunt the bourses, he added.
Marketmen said hike in interest rate by leading bankers has pulled down bank stocks and scrips of other interest sensitive sectors like realty, auto and consumer durables.
"Weakening trend received another blow after European and Asian stock markets remained weak," said a BSE broker Ratnesh Gupta.
The markets received another shock from metal stocks after the base-metal prices tumbled in the London Metal Exchange. Metal sector index suffered the most by 713.11 points at 12,494.19 followed by capital goods index by 336.38 points at 9744.31.
Banking sector index dropped by 332.39 points at 5,583.59 with blue-chips HDFC Bank, SBI, ICICI Bank and Kotak Mahindra Bank closing lower in the range of 3-8 per cent.
Realty index plunged by 327.54 points at 4,215.93 after stocks of developers fell after a hike in interest rate on home loans on Monday.
DLF Ltd fell by Rs 27.80 at Rs 368.40 or its lowest since July 4, 2007. Unitech Ltd, the second-biggest developer, declined Rs 11.05 to Rs 159.60. Indiabulls Real Estate dropped Rs 20.75 percent to Rs 250.45, a 15 months low level.
Capital goods index dropped 336.38 points at 9,744.31, oil and gas index by 275.44 points at 8,733.72, PSU index by 204.45 points at 5461.97, consumer durables by 148.84 points at 3328.76, auto index by 176.15 points at 3409.47, power index by 95.45 points at 2156.94, Teck index by 93.46 points at 2950.53, Healthcare index by 90.34 points at 4073.99 and IT index by 69.87 points at 3949.95.
As the selling pressure spilled over a wide front, the smallcap index plunged by 316.85 points at 6385.11 and madcap index by 244.63 points at 5141.86.
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