Mumbai: The stock market on 8 June 2007 extended its downslide for the third day in a row as huge selling across auto, consumer goods and metal sectors dragged its benchmark index by over 122 points in a highly volatile trading session.
The Bombay Stock Exchange’s 30-share barometer, Sensex settled at 14,063.81, down 122.37 points from previous close of 14,186.18 — taking its three-day loss to over 470 points.
The index lost more than 500 points in the week ended 8 June, recording losses in four trading sessions and could registering a gain on only one occassion.
Even a sharp decline in inflation to its lowest in over eight months failed to offset the downslide on the bourses.
Auto stocks were among the major losers on reports that rising interest rates were eating into the vehicle demands and companies like Tata Motors were cutting down their output.
Tata Motors hit a new life-time low of Rs 650.05, before closing 3.5% or Rs23.70 down at Rs653.60 at the BSE.
The country’s largest carmaker Maruti also dropped 3.8% to close at Rs732. Two-wheeler makers Hero Honda and Bajaj Auto also recorded losses between 1.5-2.5% in their share prices.
After opening on a weak note, the market showed some signs of recovery around mid-day, when it hit an intra-day high of 14,229.22 points.
Although, the benchmark indices managed to move into the positive territory for a brief period in afternoon trade, a sharp bout of selling across sectors in the last hour of trade dragged the market deep into the red. The index hit an intra-day low of 14,010.61 during the session.
Hindalco, Satyam, TCS, ONGC and Wipro were the only five stocks in the Sensex pack to register gains, while as many as 25 stocks settled in the red.
Select IT stocks were among the notable gainers and bucked the broader weakness on the bourses for the second day in a row.
A continued appreciation in the US dollar against the rupee attracted buyers toward the shares of technology companies, who carry significant exposure to the foreign exchange rates due to a major portion of their earnings coming through exports.
Satyam Computer, the country’s fourth-largest software exporter, rose nearly 3%, while bigger rivals TCS and Wipro also recorded gains. However, share price of Infosys dropped marginally by 0.2% to close at Rs1,951.05.
Overall market breadth was considerably negative with just 38.4% or 958 stocks listed at the BSE moving higher, as against 58.6% or 1,463 stocks closing with losses. A total of 74 stocks were quoted at the unchanged level at the BSE.