|
| Sensex falls 190 points on Goldman case |
| BS Reporter / Mumbai Apr 20, 2010, 00:45 IST |
|
Investors in domestic equity markets were spooked as charges of fraud against the US investment bank, Goldman Sachs, rattled global stocks.
According to provisional figures, foreign institutional investors (FIIs) sold stocks worth Rs 755 crore in the cash segment today, compared to net buying of nearly Rs 570 crore by domestic institutional investors.
The benchmark equity index of the Bombay Stock Exchange (BSE), Sensex, fell 190 points, or 1.08 per cent, to close at 17,400. The broader index, S&P CNX Nifty of the National Stock Exchange, was down 58 points, or 1.12 per cent, at 5,203.
The market breadth was weak, with 1,953 stocks (65 per cent) falling and 950 rising.
| TAKING A HIT |
| Top Sensex losers |
| Stocks |
Fall (in %) |
| DLF |
4.15 |
| Tata Steel |
3.56 |
| Sterlite Industries |
2.97 |
| TOP SECTORAL LOSERS |
| Index |
Fall (in %) |
| BSE Realty |
2.51 |
| BSE Metal |
2.11 |
| BSE Oil & Gas |
1.96 |
However, market experts termed the fall as a knee-jerk reaction to the Goldman news. They pointed out that stocks were due for a correction ahead of the Reserve Bank of India’s credit policy tomorrow.
Joint Managing Director of Motilal Oswal Financial Services Ram Deoo Agarwal said, “The markets were due for a correction; they just needed a trigger. This correction will make them healthier. We are still bullish.”
CNI Research Managing Director Kishor Oswal said, “The fall is a buying opportunity since correction will not sustain for over a day or two. Corporate earnings are robust and small- and mid-cap stocks will continue to outperform benchmark shares.”
The US Securities and Exchange Commission said it was pressing for civil fraud charges against Goldman for sale of investments tied to subprime mortgages.
Media reports, suggesting that even other top banks might come under SEC investigations, is likely to keep equity markets on tenter hooks.
More than two hours before the start of trading, the Dow futures in the US were down 48 points. The S&P 500 futures fell 8.1 points and Nasdaq 100 futures lost 7.75 points.
Equity benchmarks in Europe and other Asian markets also declined.
Benchmark indices in the UK, France and Germany declined 0.4-0.57 per cent. Key indices in Hong Kong, Japan, South Korea, Singapore, Indonesia and Taiwan were also down by 1.33-3.17 per cent. Property and banking stocks led losses in Chinese equities on reports that the government had asked banks to stop loans for third-home purchases in its latest measure to cool property prices.
|
|
|
|
|
|
|
|
|
|
 Read Business news in |  |
|
|
|
|
|
|
Advertisements |
|
|
|
|
|
|
|
|
|
|
Content Guide
