Sensex sheds over 385 points, tumbles below 10k level

Sensex sheds over 385 points, tumbles below 10k level
PTI
Comment E-mail Print Share
First Published: Thu, Nov 06 2008. 04 56 PM IST
Updated: Thu, Nov 06 2008. 04 57 PM IST
Closing
Mumbai: The Bombay Stock Exchange benchmark Sensex Thursday once again dipped below 10,000 points level after losing over 385 points on the funds’ selling spree on concerns of deepening global recession fears, coupled with a moderate rise in inflation rate.
The Sensex, which had lost 511 points in previous day’s trading, fell by another 385.79 points at 9,734.22 after touching the day’s low of 9,635.22, following a steep fall in blue-chip stocks led by Reliance Industries.
The wide-based National Stock Exchange index Nifty also fell below 2,900 points level to trade at 2,892.65, reflecting a loss of 102.30 points. It hit the lowest level of 2,860.25 points during the day.
Inflation rose to 10.72% for the week ended 25 October on account of higher prices of cereals and vegetables.
Besides, a weakening trend in global stock markets influenced by global financial crisis fears also dampened the trading sentiment on the domestic bourses.
While heavyweight stocks led by Reliance Industries, Infosys Technologies and ICICI Bank fell sharply on brisk selling, a smart recovery in realty and healthcare sector stocks saved the market from further fall.
“The stock markets are trapped in a global sell-off on fears of a deep recession in the US,” said Rajiv Malik of RNM Financial Services.
He said the market was still struggling to recover as even the last cushion of short-covering was not visible after most of the pending long positions were cleared in view of the volatile movements.
Opening
Mumbai: The benchmark Sensex tumbled by over 430 points and again dipped below the 10k level in early trade today on heavy selling by foreign funds as well as retail investors, tracking an overnight slide on the US markets.
The 30-share index, which had lost 511.11 points yesterday, dropped by another 430.17 points, or 4.25% at 9,689.84, as all the sectoral indices were trading in negative zone with losses between 1.3 to 5.25%.
The National Stock Exchange index Nifty also fell by 128.90 points, or 4.26% to 2,866.05.
Marketmen said fresh capital outflows by foreign funds following weakening global equity markets and weak Indian rupee against US dollar mainly led to a fall in the stock markets.
They said drop in stock prices in the two straight sessions wiped out almost half of gains, recorded in the past five sessions.
“Weak global cues mainly dampened trading sentiments here,” said a leading Delhi-based stockbroker.
The Indian rupee depreciated by 50 paise to Rs47.94 against the US dollar at the forex market in opening trade.
Major losers which dragged the Sensex down were Reliance Industries, Reliance Infra, RCom, Bharti Airtel,Infosys Technologies, Satyam Computers, Wipro, Tata Consultancy, Bhel, L&T, Tata Steel, Sterlite Industries and Tata Power.
Banking stocks such as ICICI Bank, HDFC Bank and State Bank of India were also trading in the negative zone.
Meanwhile, the US Dow Jones Industrial Average closed 5.06% down, while most of the Asian stock markets, led by Hong Hong, were down by almost six per cent in opening trade.
Comment E-mail Print Share
First Published: Thu, Nov 06 2008. 04 56 PM IST
More Topics: Stocks | Open | Sensex | Nifty | Money Matters |