Closing: Sensex drops from 10k level to end 262 pts down

Closing: Sensex drops from 10k level to end 262 pts down

New Delhi: The benchmark Sensex closed down 2.62% on Wednesday, 17 December as foreign funds sold stocks on doubts arising from Satyam’s now-dropped Maytas acquisition deal.

Markets opened above 10,000 level but later shed off gains in choppy trade slipping into negative zone after noon.

The 30-share BSE index ended 261.69 points lower at 9,976.98 points and broad based 50-issue NSE index closed down by 87.40 points at 2,954.35 points.

Index was dragged by Satyam Computer shares that ended down 30.11% at Rs158.05. This was the result of resentment among company investors over the plan to buy Maytas’ construction and real estate firm for $1.6 billion. Satyam stocks continued to fall despite the company calling off the deal.

Marketmen said reversal in early profit trend was also because Asian bourses shed their gains owing to plunging auto industries.

Other sectors that lowered the Sensex into negative territory were capital goods, metals, oil and gas and mid-cap.

Reliance Infrastructure followed close to Satyam in incurring losses (13.73%, Rs549.15), then were losers like Reliance Communications (13.36%, Rs202.70), Jaiprakash Associates (12.11%, Rs76.95) and ACC Ltd (9.21%, Rs486.30).

Meanwhile, losing much of earlier profits, Japan’s Nikkei ended 0.5% higher and Hong Kong’s Hang Seng ended climbed 1.5% on property-related shares.