Brokers said, ''The major heavy weight stocks opened on a weak note following overnight slide in US stocks and a surge in oil price to a record high above USD 120 a barrel. FMCG and consumer durable stocks moved higher, whereas IT and realty stocks slipped. Mid-caps and small-caps extended gains from the previous session.
US markets declined yesterday, with financial shares facing the maximum brunt on fears of Bank of America Corp likely to abandon its deal to buy Countrywide Financial Corporation. However, Bank of America said after the closing bell that it remained committed to acquiring Countrywide.
Asian markets were mixed. Key indices in China and Singapore were down 0.03 per cent to 0.47 per cent. However, key indices in South Korea, Hong Kong and Taiwan were up 0.04 per cent to 0.42 per cent. Japanese markets are closed today on account of holiday.
Later, the current 30-share BSE Sensex crashed steeply by 145.55 points or 0.83 per cent at 17,345.35 from its last finish. Sensex gained 11.25 points at day's high of 17,502.15, hit at the onset of trading session. The index lost above 100 points at day's low of 17,341.60, hit in early trade. Similarly, the broader-based S&P CNX Nifty index of National Stock Exchange (NSE) also declined by 36.95 points or 0.71 per cent at 5,180.25 points from it last close of 5,192.25. However it resumed flat at 5192.35, later it recorded the day's high at 5,206.50 points and a low at 5,154.25 points.
The BSE Mid-Cap index rose 0.26 per cent to 7,317.94 and BSE Small-Cap index rose 0.27 per cent to 8,869.03. India's largest private sector firm by market capitalisation and oil refiner Reliance Industries was steady at Rs 2,665. India's largest private sector bank by assets ICICI Bank fell 0.15 per cent to Rs 931.75.
India's largest engineering and construction firm by revenue Larsen&Toubro fell 0.26 per cent to Rs 3,124.90.
The top Sensex gainers as ITC was up 1.56 per cent at Rs 224.15 followed by Tata Steel by 1.44 per cent at Rs 814.10, Hindalco Industries by 1.47 per cent at Rs 185.95, ONGC by 0.89 per cent at Rs 1,048.20, Bharat Heavy Electricals by 0.97 per cent at Rs 1,922 and Cipla by 0.93 per cent at Rs 218.
Top Sensex losers were as Bharti Airtel came down by 3.81 per cent at Rs 859.80 followed by DLF by 1.57 per cent at Rs 694.25, Mahindra&Mahindra by 1.53 per cent at Rs 667.15, Maruti Suzuki by 1.58 per cent at Rs 772, Reliance Infrastructure by 1.13 per cent at Rs 1,499.75 and Infosys Technologies by 0.89 per cent at Rs 1,771.45.
Liquor maker United Breweries (UB) was the most active stock on BSE in terms of turnover. The UB stock surged 14.94 per cent to Rs 245 on a huge turnover of Rs 128.13 crore. The counter clocked a volume of 60.22 lakh shares as against average daily volume of 22,450 shares in past one quarter.
Foreign Institutional Investors (FIIs) were net sellers of Rs 89.70 crore in the futures and options segment yesterday, 5 May 2008. They were net sellers of index futures to the tune of Rs 200.56 crore and bought index options worth Rs 382.48 crore. They were net sellers of stock futures to the tune of Rs 232.22 crore and sold stock options worth Rs 39.39 crore.
Light, sweet crude for June delivery rocketed to USD 120.36 on the New York Mercantile Exchange, hitting a new intra-day record on a weaker US Dollar, geopolitical tensions and supply concerns.
Meanwhile, in a move that will help stock market investors and brokers use their margin funds efficiently, the Securities and Exchange Board of India (Sebi) on Monday, 5 May 2008, approved cross-margining across cash and derivatives segments. The Sebi circular also said that near-month stock futures positions would not be considered for cross-margin benefit three days prior to expiry (the last Thursday of every month).
The asset base of the mutual fund industry increased by 7.32 per cent during the month of April 2008. The mutual fund industry now has Rs 5,67,601.98 crore of assets under management, brokers added.