Market shivers on global jitters
Indian stocks fell yesterday, with the benchmark index declining the most in two months, after efforts to shore up paralysed credit markets failed to assuage concerns that the global economy will slip into recession.
A recovery of almost 200 points later in the day could not prevent the BSE Sensex to close at 12,595.75 points, down 506.43 points, or 3.87 per cent. The National Stock Exchange S&P CNX Nifty-50 closed at 3850.05 points, down 135.2 points or 3.39 per cent.
The sentiment is unlikely to improve tomorrow as the Dow Jones index fell over 300 points in initial trade after the announcement that Citigroup will take over Wachovia Corporation's banking business to rescue the North Carolina-based bank beset by mortgage losses.
Ambareesh Baliga, vice-president (private client group), Karvy Stockbroking, said: “We are advising our clients to stay away from trading till selling by Foreign Institutional Investors (FIIs) stops. Also, there is no support to the markets from any domestic institution. While markets are below their fundamental levels, fear has gripped investors and there is panic selling.”
According to provisional data on the BSE website, FIIs sold equities worth Rs 476.94 crore, while domestic institutional investors bought equities worth Rs 554.82 crore.
The fall was in tune with most Asian markets, where the indices fell between 0.74 per cent and 4.29 per cent. European markets also fell as the Belgian, Dutch and Luxembourg governments were forced to rescue financial firm Fortis over the weekend. Stricken UK lender Bradford & Bingley was also nationalised after its branch network and deposit business was sold to Spain's Banco Santander.
Apart from ICICI Bank (down 12.11 per cent to Rs 493.3 a share), the other top losers on Monday were Jaiprakash Associates (down 11.85 per cent to Rs 106.7) and Satyam Computers (down 9.13 per cent to Rs 292.55).
| Top Sensex losers | ||
| Sep 29 | % Chg* | |
| ICICI Bank | 493.30 | -12.11 |
| Jaiprakash Asso | 106.70 | -11.85 |
| Satyam Computer | 292.55 | -9.13 |
| TCS | 619.65 | -8.40 |
| Tata Power | 918.10 | -6.95 |
| Reliance Infra | 793.90 | -6.56 |
| Reliance Commun | 326.30 | -6.11 |
| Ranbaxy Labs | 255.85 | -6.08 |
| Mah & Mah | 502.05 | -5.36 |
| DLF | 350.60 | -5.12 |
| Share Price in Rs on BSE | ||
The only index stock that managed to buck the trend was Hindustan Unilever, which was up 0.79 per cent to Rs 254.5. The market breadth remained weak with only 357 stocks advancing, while 2,287 stocks declined.