| Sensex value shrinks by half | |
| BS Reporter / Mumbai January 01, 2009, 22:11 IST | |
Posts the third-worst performance among emerging economy indices in 2008.
The Bombay Stock Exchange Sensitive Index shed more than half its value in 2008, its worst performance ever, and the outlook remained downbeat in the near term on dismal corporate earnings outlook.
The index fell 52.5 per cent, or 10,640 points, as foreign funds dumped emerging-market assets, including Indian equities, as $1 trillion of credit-market losses triggered the failure of Lehman Brothers Holdings in September and led to a freeze in global lending.
The Sensex was the thirdworst performer among emerging economy indices, after Shenzen and Shanghai indices of China, with foreign institutional investors offloading a record $13.4 billion in 2008 compared to $17 billion buying in 2007.
Despite the huge redemption pressure, domestic mutual fund houses were net buyers to the tune of over $2 billion, or Rs 13,702 crore.
Analysts say FII flows can resume again if the rally in the value of the dollar globally stops. "FII inflows may pick up after the first two quarters of 2009 as Indian stocks' valuations may become attractive," said G J George of Geojit Financial Services.
For the year, Hindustan Unilever was the only stock on the Sensex to rise, gaining 17 per cent. Jaiprakash Associates fell the most, a slump of 81 per cent.
The loss for mid-cap index of the exchange was higher at 66.95 percent for the year, while that for small-cap index was even steeper at 72.41 percent.
Among the 13 sectoral indices, realty fell the most (82.13 per cent), followed by metals (73.95 per cent), consumer durables (72.49 per cent) and capital goods (65.02 per cent).
On the last day of trading this year, the Sensex closed lower by 69 points after surrendering its early gains on emergence of selling after rating agency Standard & Poor’s downgraded some of the Sensex companies, including Reliance Industries.
The National Stock Exchange index Nifty fell by 20.35 points at 2959.15. It touched the day’s high 3002.65 and a low of 2937.35.
Market leader Reliance Industries today dropped 1.50 per cent at Rs 1,230.25 after S&P revised its rating outlook on the country’s to negative from stable on the back of the company’s increased debt and pressure on profitability.
Among other Sensex stocks ICICI Bank fell 2.12 per cent, Infosys Technologies 0.64 per cent, HDFC Ltd. By 2.75 per cent, Sterlite Industries by 1.62 per cent, Tata Consultancy by 0.87 per cent and Wipro by 0.81 per cent.
All these stocks together carry nearly 42 per cent weightage on the Sensex.
Satyam Computer Services gained for a fourth day and surged 6.3 per cent to 170.80, its highest level in two weeks.
Sugar firms rose on anticipation a shortage in output in the country will help increase prices. Bajaj Hindusthan, the country’s biggest sugar producer, rose Rs 6.90, or 10 per cent, to 72.9, the highest since October. 8.
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