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Sensex plunges to below 20K level on global recession worries

Sensex plunges to below 20K level on global recession worries
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First Published: Wed, Jan 16 2008. 04 25 PM IST
Updated: Wed, Jan 16 2008. 04 25 PM IST
Mumbai: Sensex nosedived over 380 points today to close at below 20K level on heavy selling by foreign funds on recession worries on Wall Street, amid investors liquidating their holdings in secondary markets to invest in mega issue of Reliance Power.
The 30-share BSE barometer, which had lost nearly 477 points in yesterday’s trading, fell further by 382.98 points to end at 19,868.11.
The Sensex had plummeted to the day’s low of 19,513.25 points and touched high of 20,079.89 points in intra-day as blue-chip Reliance Group stocks of both the Ambani brothers fell sharply.
Nifty also dropped by 138.50 points at 5,935.75, after dipping to day’s low of 5,825.75 and the high of 6,065 points.
Trading sentiment turned bearish following reports of Citigroup, the world’s leading bank, disclosed losses, giving indication of a deepening crisis in the global financial markets.
Marketmen said the weak trend in global stock markets on recession concerns melt most of the financial markets, including stocks and bullion.
They said liquidity was also being sucked out towards the Reliance Power IPO, India’s largest public offering, which was oversubscribed over 11 times by Wednesday afternoon.
The market dip to lowest levels in over three-month time during intra-day trading as most of the heavyweight stocks moved in negative zone, they added.
The major impact to the market came from a weakening Realty which lost 596.18 points at 12,825.31, followed by metal by 590.38 points at 18,020.25.
Capital goods index fell by 473.11 points to 18,673.80, PSU index by 232.79 points to 10,071.51, oil and gas index by 206.35 points to 13,650.13 and power index by 189.94 points to 4462.33.
Late Afternoon
Mumbai: Sensex today fell by 712 points as market participants sold stocks including those of bluechip firms to invest in Reliance Power IPO, amid subprime crisis unfolding further.
The 30-share index fell by 712.22 points to 19,538.87 at 1430 hrs as investors liquidated their position in the secondary market to subscribe to the mega issue of Anil Ambani Group’s Reliance Power Ltd, which seeks to raise Rs11,700 crore.
Reports of world’s largest bank Citigroup Inc reporting fresh losses due to US subprime mortgage crisis also weakened investor sentiments. Weak cues from global markets remained another dampening factor for the bourses, triggering selling even in fundamentally strong stocks.
Selling activity was spread over a wide front, taking its toll on the Reliance pack of shares, including country’s most valued firm Reliance Industries, Reliance Energy, Reliance Natural Resources Ltd, Reliance Capital, brokers said.
Mumbai: The Bombay Stock Exchange benchmark Sensex tumbled over 346 points to dip below the 20K level in early trade on Wednesday on heavy selling by investors, who moped up funds to invest in the mega issue of Reliance Power.
The BSE-30 index, which had lost over 477 points in previous day trade, fell further by 346.52 points to 19,904.57 in the first five minutes.
Similarly, the wide-based National Stock Exchange benchmark Nifty dipped by 118.15 points to 5,956.10.
Marketman said major players were taking out money from secondary market to invest in the current mega issue by Reliance Power which was subscribed over ten times on the first day of trade.
They said trading sentiment also dampened following a fall in global stock markets.
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First Published: Wed, Jan 16 2008. 04 25 PM IST
More Topics: Sensex | Nifty | BSE | NSE | Stocks |