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Weak global cues drag Sensex to below 14K level

Weak global cues drag Sensex to below 14K level
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First Published: Mon, Sep 15 2008. 04 52 PM IST
Updated: Mon, Sep 15 2008. 04 52 PM IST
Mumbai: Markets on Monday partly recovered the massive early losses of over 728 points with the benchmark Sensex ending the day lower by nearly 470 points to close below 14,000 level.
The Bombay Stock Exchange barometer, which had lost nearly 945 points in the past four trading sessions, dropped by another 469.54 points, or 3.35%, to close at 13,531.27 points.
On frantic selling in early trade, the 30-share index tumbled to 13,150.81 points, the days lowest level.
The wide-based National Stock Exchange index Nifty also lost 155.55 points, or 3.68%, at 4,072.90, after dipping below 4,000 points level at 3,955.40 and touching a high of 4,237.25 points.
Marketmen said investors resorted to panic selling on reports that US investment bank Lehman Brothers, which has been reeling under mortgage losses, is filing for bankruptcy. This has strengthened the feeling the global financial crisis is far from over, they added. Bank of America’s plans to buy out Merrill Lynch also weighed against the market sentiment, they further said.
The Indian rupee breaching the 46 mark during intra-day today for the first time in two years also impacted adversely the market sentiments, brokers said. Rupee’s weakness raised concerns of more capital outflows as some foreign funds remained active in reducing their portfolios.
On across-the-board selling, all the sectoral indices on BSE closed in the red. Realty index was the biggest loser at 7.65%, followed by IT index at 5.51%. Teck, metal and power indices which closed in the range of above of four per cent were the other major losers.
Among the elite Sensex club, Reliance Infrastructure tumbled by 9.72% to emerge as the biggest loser. IT major Satyam was a close second at 9.45%.
The BSE benchmark Sensex on Monday plunged by 790 points at 1150 hrs following bankruptcy protection filed by US investment bank Lehman Brothers and weak Asian bourses.
The Singapore’s Strait Times and Taiwan Weighted Index were down by about 3 to 4% in early trade while other major markets in Asia like as Hong Kong and Japan remained closed for a public holiday.
The Bombay Stock Exchange 30-share barometer tumbled by 790 points or 5.68% to rule at 13,209.19 from its last weekend’s close after banking stocks led by ICICI and HDFC Bank slipped sharply.
The broader 50-share Nifty of the National Stock Exchange also dipped below 4,000-mark by falling 254 points or 6.06% to 3,973.05.
A terror strike in the national capital over the weekend also had adverse impact on the market sentiment. Investors looked unwilling to make any transactions in the prevailing market situation.
Brokers said the collapse of Lehman Brothers and worries of a severe economic recession in the United States virtually shook the global financial markets.
Key stocks such as ICICI Bank, HDFC Bank, State Bank of India, BHEL, RIL, Bharti Airtel, DLF, HDFC, Infosys Technologies, ONGC and Reliance Infra dropped sharply due to heavy selling pressure.
The Bombay Stock Exchange benchmark Sensex plunged by 728 points and fell below the 13,300 level in early trade on Monday on nervous selling by funds following serial blasts in the capital on Saturday amid depreciating rupee.
The 30-share index, which had lost 323.48 points in the previous trading session, moved down by 727.95 points to 13,272.86, a level last seen on 17 July this year, after all the sectoral indices slipped into the negative zone.
Similarly, the wide-based National Stock Exchange’s index Nifty plunged by 222.75, or 5.2% to 4,005.70.
Stock brokers said five serial blasts in the heart of the capital on Saturday mainly triggered all-round selling by funds as well as retail investors.
They said depreciating rupee, which dipped to two-year low of 46 level against the US dollar, also affected the trading sentiments.
All the 30 constituents of the Sensex were down with sharp losses.
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First Published: Mon, Sep 15 2008. 04 52 PM IST
More Topics: Sensex | BSE | Stocks | Shares | Nifty |