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| Sensex trips on monsoon concern, slips 225 points |
| BS Reporter / Mumbai Aug 20, 2009, 00:27 IST |
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The benchmark stock indices continued to be volatile today with a downward bias due to weak monsoons and global cues.
What dampened the sentiment was Agriculture Minister Sharad Pawar’s comment that the deficit in rainfall might result in a sharp decline in rice production this year.
The Bombay Stock Exchange Sensitive Index, or Sensex, shed 1.5 per cent, or 225.62 points, to end at 14,809.64. The Nifty dropped 64.8 points, or 1.45 per cent, to close at 4,394.10.
Other leading Asian markets such as Japan and China, which had recovered partially yesterday, also continued to slip.
The Shanghai Composite tumbled 4.30 per cent, the Hang Seng fell 1.73 per cent and the Nikkei-225 slipped 0.79 per cent.
“Our markets have reacted in tandem with the world markets. The outlook continued to be positive as our economy is very strong,” said Hitesh Agarwal, head (research), Angel Broking.
US markets ended in the green yesterday with the Nasdaq gaining 1.3 per cent and the S&P 500 adding 1 per cent.
The market breadth was negative today with 2,339 declines and 1,551 advances.
All sectoral indices were in the red. The oil & gas index slumped 2.68 per cent, followed by metal (2.33 per cent), auto (2.14 per cent) and power (1.93 per cent).
ACC and Reliance Infrastructure dropped 5.08 per cent and 4.86 per cent, respectively. Grasim, Tata Steel and Hindalco slipped 3.2-4.2 per cent. However, HDFC gained 1.56 per cent.
Sensex heavyweight Reliance Industries fell 3.23 per cent. Vehicle-maker Mahindra & Mahindra dropped 3.58 per cent on monsoon worries.
“Mahindra & Mahindra was adversely impacted because of the low rainfall. Also, some auto scrips, which had soared all of a sudden, have fallen sharply,” Agarwal said.
Among other stocks, Glenmark Pharma plunged 14.5 per cent following the company’s unsuccessful attempt to produce drugs to counter a smoking-induced lung disease.
The company is also facing a lawsuit for patent infringement of an anti-malaria product. However, Tulip Telecom soared 10.58 per cent, followed by IVRCL Infrastructure & Projects (6.38 per cent) and Koutons (5.72 per cent).
Foreign institutional investors (FIIs) were net sellers for the third consecutive day and sold shares worth Rs 622.06 crore. This takes their combined selling this week to Rs 2,570.39 crore. However, domestic institutional investors bought shares of Rs 83.77 crore, according to provisional data from the BSE.
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