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| Realty, metal lead 158 points fall in Sensex |
| Press Trust Of India / Mumbai Jul 30, 2009, 00:35 IST |
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Realty and metals were instrumental in pulling down the Sensex by 158 points as the net profit of both Tata Steel and Sterlite was down by over 40 per cent in the first quarter.
Brokers squaring positions ahead of the monthly expiry of derivatives tomorrow was also a reason for the fall.
The Sensex settled the day at 15,173.46, a net loss of 158.48 points, or 1.03 per cent, from its previous close.
The market hit the intra-day low of 14,881.41 around noon, down 444 points from the last close after China's Shanghai Composite tumbled on fears about the government's likely steps to cool rising equity markets.
The BSE barometer, however, regained the psychological 15,000 level as European markets opened strong.
Selling was more in realty and metal stocks as investors felt the recent surge in these stocks was excessive. The realty index suffered the most, and was down 4.36 per cent to 3,911.77 as DLF lost 6.58 per cent and Jaiprakash Associate 2.20 per cent.
Bonanza Portfolio Assistant Vice-President Avinash Gupta said: “A volatile day ends with losses on high volumes. The expiry of futures contracts due tomorrow as well as overseas cues contributed to the volatility.
The market is expected to be volatile tomorrow as well with a downward bias.”
The Hang Seng was down 2.37 per cent, Strait Times 0.76 per cent, Taiwan Weighted 0.83 per cent and Kospi 0.11 per cent.
The broader 50-share Nifty of the National Stock Exchange fell 50.60 points, or 1.11 per cent, to 4,513.50.
The metals sector index was the second-worst performer, losing 2.31 per cent to 12,217.24, as Sterlite Industries was down 5.53 per cent with copper prices falling in Asian trade. Tata Steel, the biggest producer of the alloy, plunged 5.77 per cent.
Gammon India fluctuated widely in the range of Rs 176 and Rs 130 before closing at Rs 163.20, a net rise of 9.83 per cent over the last close, after Delhi Metro served the company a notice asking it to explain why it should not be blacklisted for two years following an accident at a metro construction site on July 12.
Other major losers included Sun Pharma (5.24 per cent), Tata Motors (4.96 per cent), Grasim (4.03 per cent), Rel Infra (3.79 per cent), Hind Unilever (3.23 per cent), Rel Comm (2.36 per cent), Jaiprakash Asso (2.20 per cent) and L&T (2.13 per cent).
Sensex target raised to 17,000, Credit Suisse says
Bloomberg reports: The Bombay Stock Exchange Sensitive Index may rise to 17,000 by the middle of 2010, helped by the availability of capital, Credit Suisse Group AG has said.
The target was higher than the brokerage’s earlier forecast of 13,500, analysts Nilesh Jasani and Arya Sen said in a report.
Still, they don’t rule out a decline of 15 per cent to 20 per cent at the end of 2009 should the central bank tighten its monetary policy, before the index rebounds, the report added.
The Sensex yesterday slipped 0.3 per cent to 15,331.94, trimming its rally this year to 59 per cent. India is the world’s fifth-best performer, helped by optimism that the election victory of the ruling Congress Party will allow Prime Minister Manmohan Singh to introduce reforms to stimulate economic growth.
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