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| Markets plunge into red on weak global cues |
| BS Reporter / Mumbai Feb 05, 2010, 00:18 IST |
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Sensex sheds 271 points; Nifty down 86 points.
Weak global cues and a late sell-off in domestic equities dragged the Bombay Stock Exchange’s (BSE’s) sensitive index, Sensex, and the National Stock Exchange’s Nifty down, erasing most of yesterday’s gains.
But shares of most state-owned oil companies like Indian Oil Corporation, Bharat Petroleum Corporation and ONGC closed higher.
“There is an expectation that the Kirit Parikh committee’s recommendations will be implemented in part sometime next week,” said Arun Kejriwal, director at KRIS Research.
The panel, headed by former Planning Commission member Kirit Parikh, has favoured market-linked prices for auto fuels and a sharp hike in the prices of kerosene and cooking gas. If the recommendations are implemented, it will save over Rs 30,000 crore per annum at current levels of under-recoveries for oil companies.
While the Sensex shed 1.64 per cent, or 271.10 points, to close at 16,224, the broader Nifty was down 1.75 per cent, or 86 points, at 4,845.
The BSE Mid-cap index fell 1.95 per cent while the BSE Small-cap index shed 1.61 per cent. The BSE Realty index was the top loser with a 3.89 per cent fall, followed by the BSE Metal index (3.36 per cent).
Key benchmark indices in Europe were down by 0.65-0.83 per cent ahead of interest rate decisions by the European Central Bank and the Bank of England scheduled on Thursday. At 5 pm, Dow Jones stock futures was down by 0.58 per cent.
Sailav Kaji, director, institutional equities and chief strategist at Fiduciary Euromax Capital, said, “The markets will move on global cues in the coming days. The Nifty is likely to move within the range of 4,800 to 4,900.”
Aluminum producer Hindalco Industries was the top loser in the Sensex pack, with a 6.37 per cent decline to Rs 146.15. Infrastructure firm Jaiprakash Associates fell 4.59 per cent to Rs 131.10. Real estate major DLF was down 4.33 per cent at Rs 321, while Tata Motors fell 4.36 per cent to Rs 690.20 and Tata Steel by 3.85 per cent to Rs 577.30.
According to provisional figures released by the Bombay Stock Exchange, foreign institutional investors sold stocks worth Rs 155.38 crore in the cash segment. Domestic institutional investors were net buyers to the tune of Rs 241.39 crore.
Market breadth was negative on the BSE, with 2,002 declines and 837 advances.
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