Sensex below 10K for 1st time since 2006

Saturday, October 18, 2008 at 3:10 am

The Bombay Stock Exchange (BSE) benchmark Sensex on Friday (October 17) sank to more than two-year lows less than 10,000 points on panic selling by funds and general investors. After a promising start, the Sensex dropped by 606.14 points, or 5.73 per cent, to 9,975.35, a level last seen in June 2006. The key-index dipped to 9,911.32 during the day and a high of 10,786.93.

Similarly, the wide-based National Stock Exchange (NSE) index Nifty tumbled by 194.95, or 5.96 per cent, to 3074.35 after touching the day’s low of 3046.60 and a high of 3335.95 points. Market men said the Sensex dipped to the lowest level in over two years on concerns of a sharp global economic slowdown and sluggish corporate earning. They said a series of measures announced by the government and the Reserve Bank of India failed to check rising capital outflow by foreign funds.

The market barometer turned significantly down as market major Reliance Industries dropped by 6.58 percent, DLF Ltd. By 10.34 per cent, Bharti Airtel by 7.47 per cent, ICICI Bank by 5.61 per cent and State Bank of India by 8.42 per cent.

Sector-wise, Realty stocks suffered the most as segment index meltdown by 10.25 per cent at 2,524.89 followed by Power sector index by 8.09 per cent at 1,712.27. Metal sector index fell by 6.12 per cent at 5801.71, after segment majors like Sterlite lost Rs 26.35 at Rs 272.25, Tata Steel by Rs 21.55 at Rs 248.20, Nalco by Rs 20.15 at Rs 264.75 and Sesa Goa Rs 4.45at Rs 79.70. The selling in metal stocks picked up on fears the producers cutting prices.

Tech index lost 5.91 per cent to 2068.20 following a rise in share prices of NDTV 10.58 per cent, Reliance Communication 9.64 per cent to 233.95 and Idea Cell 6.46 per cent. Capital goods index fell by 5.52 per cent at 7241.36 as shares of BHEL, Larsen and Toubro, Areva, ABB, Punj Lloyed, Suzlon and Reliance Industrial Infra fell sharply.

Banking index continued its downward march and fell further by 5.46 per cent at 5546.69 on the back of a steep fall in shares of ICICI Bank, HDFC Bank and SBI. Oil and Gas index lost 5.10 per cent at 6479.56, IT index by 4.94 per cent at 2537.27, PSU index 4.71 per cent at 5235.48, auto index by 3.01 per cent at 3099.69, healthcare index by 2.68 per cent at 3209.02, consumer durable by 2.64 per cent at 2085.28 and FMCG by 2.29 per cent at 1858.99. Mid-cap index plunged by 3.07 per cent at 3544.84 and Small-cap index by 2.76 per cent at 4167.86.

(With inputs from agencies)

( This post is from an independent writer. The opinions and views expressed herein are those of the author and are not endorsed by APakistanNews.Com.)

Sensex below 10K for 1st time since 2006

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