Sensex dips below 10K level in early trade

Friday, November 7, 2008 at 5:11 am

The benchmark Sensex tumbled by over 430 points and again dipped below the 10k level in early trade today (November 6) 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 per cent at 9,689.84, as all the sectoral indices were trading in negative zone with losses between 1.3 to 5.25 per cent.

The National Stock Exchange index Nifty also fell by 128.90 points, or 4.26 per cent 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 Rs 47.94 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 per cent down, while most of the Asian stock markets, led by Hong Hong, were down by almost six per cent in opening trade.

Banking stocks slide 5 pc on weak investor sentiment

Banking stocks today tumbled by over five per cent in the morning trade amid weak investor sentiment. The Bankex opened at 5,399.89 points, and dipped by 5.17 per cent to a low of 5,342.40. It was later quoted at 5,484.65 points.

Among the heavy-weight stocks, ICICI Bank plunged 7.65 per cent to a low of Rs 417.10. It was later quoting at Rs 435.25, down 3.63 per cent on the BSE.

Country’s largest lender State Bank of India also plunged five per cent to a low of Rs 1,212. It was trading at Rs 1,231, down 3.35 per cent on the BSE. HDFC Bank also slipped 5.44 per cent to Rs 1,035, while Yes Bank also plunged 9.36 per cent to Rs 74.10.

Other PSU lenders which bore the brunt of the weak global sentiments include Bank of India, which dipped 3.84 per cent, Canara Bank (2.17 per cent) and Federal Bank (3.96 per cent).

Bucking the trend, Punjab National Bank gained 0.89 per cent at Rs 496.20 on the BSE. Besides, Kotak Bank gained 1.91 per cent and Oriental Bank gained 0.59 per cent in the morning trade.

Metal stocks down 5.01 pc on demand worries

BSE Metal index, which had lost over 402 points yesterday, fell by another 273.28 points, or 5.01
per cent at 5,178.46 points after dipping to 5,094.11 in opening trade after all 15 constituents of sectoral index were down up to eight per cent.

Country’s largest steel producer Tata Steel fell sharply by Rs 16.50, or 7.65 per cent at Rs 199.25, while Sterlite Industries fell by Rs 17.65, or 6.58 per cent at Rs 250.60. Besides, Jindal Steel fell by Rs 31.35, or 4.11 per cent at Rs 732.10, JSW Steel by Rs 25.95, or 7.69 per cent at Rs 311.45, Sesa Goa by Rs 2, or 2.47 per cent at Rs 79, SAIL by Rs 4.20, or 4.90 per cent at Rs 81.60 and Welspun Gujarat by Rs 6.10, or 4.89 per cent at Rs 118.65.

( 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 dips below 10K level in early trade

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