Mumbai, Jun 23: The key benchmark Sensex of the Bombay Stock Exchange (BSE) on Monday, June 23 closed at a ten month's low at 14,293.32 with a big loss of 277.97 points on heavy panic selling across the sectors on concern over high inflation and deadlock between left and Congress parties over the Indo US nuclear deal.
The Nifty index of National Stock Exchange also closed at a ten month's low at 4266.40 with a loss of 81.15 points from it last finish of 4347.55. The Sensex has plunged by 1403.58 points and Nifty index by 386.60 points during the the last four sessions. Bears have targetted capital goods, metal, power, realty, auto, and select oil, pharma and banking stocks. Midcap and small cap stocks were the real culprits of the day, which worsened market breadth in today's session.
Many leading heavyweight stocks had opened sharply lower and witnessed heavy selling pressure since then. In the afternoon session, it showed major recovery of 350 points in Sensex and 100 points in Nifty, but could not sustain that for long and again slipped into deep red.
Fall in US markets on Friday was another reason for the fall.
There is a possibility of rate hike by RBI following higher inflation level of 11.05 touched last week, especially CRR and repo rate. Banks are also likely to raise lending rates. Experts believe that economic growth may see some slowdown and expect rate hike of 50 bps in CRR and 25 bps in repo rate.
The Sensex recovered nearly 130 points from day's low of 14,163.45 and closed at 14,293.32, down 277.97 points or 1.91 per cent. The Nifty has broken another psychological mark and slipped below 4300 level. It has recovered nearly 41 points from day's low of 4225.50 and ended at 4266.40, down 81.15 points or 1.87 per cent.
Total turnover traded by the markets stood at Rs 83165.66 crore.
This includes Rs 11229.27 crore from NSE Cash segment, Rs 66917.33 crore from NSE F &O and the balance Rs 5019.06 crore from BSE cash segment. The market breadth was extremely weak on BSE with 2213 shares declining as compared to 441 that advanced. 47 remained unchanged.
Volatility is expected to remain high in the near future as derivatives contracts for June series are set to expire on June 26, 2008. As per reports, the marketwide rollover of positions from June 2008 series to July 2008 series stood at 16 per cent, while that of Nifty was 20 per cent, as on June 20.
The BSE major indices also suffered a major setback as METAL index crashed by 671.73 points and closed in red at 13,856.33 points, followed by 602.78 to 10,797.01 points, CG index by 261.36 to 7136.30 points, OILS &GAS index by 247.79 to 9172.10 points, MID CAP index by 217.20 to 5815.23 points, REALTY index by 195.89 to 5187.92 points, BANKEX index by 174.20 to 6630.58 points, PSU index by 156.58 to 6214.11 points, AUTO index by 119.45 to 3923.41 points, HC index by 105.16 to 4220.24 points, POWER index by 101.86 to 2437.98 points and FMCG index by 2202.65 points.
Sustained selling pressure throughout the day resulted in market extending their losses for the fourth straight session today. Shares from capital goods, banking, realty, metal and power sector suffered sharp losses. But ONGC gained ahead of its Q4 and year ended March 2008 results scheduled on June 25.
Meanwhile, RBI governor Y V Reddy today said RBI will play its part in moderating and managing demand and may have to build on action it has already taken. He said the central bank was in the midst of an intensive examination of issues and options.
Among the top losers of heavyweight stocks were L&T, which declined steeply by Rs 167.40 to close low at Rs 2380, followed by Reliance by Rs 74 to Rs 1984.05, REL INFRA by Rs 45.80 to Rs 906, BHEL by Rs 43.90 to Rs 1340, SBI by Rs 42.95 to Rs 1192.05, Maruti Suzuki by Rs 39.50 to Rs 682.05, Tata Steel by Rs 32.05 to Rs 731, Ranbaxy by Rs 29.20 to Rs 509.50, Grasim by Rs 28.70 to Rs 2081.50, Mahindra&Mahindra by Rs 26.20 to Rs 546,ACC by Rs 19.55 to Rs 602, ICICI bank by Rs 13.30 to Rs 709.95, Jaiprakash Asso by 13.25 to Rs151.35, Hindalco by Rs 12.60 to Rs 146.80, DLF Ltd by Rs 10.20 to Rs 438.60, Bharti Tele by 8.25 to Rs 735, TCS Ltd by Rs 5.60 to Rs 844 and REL Comm by Rs 3.40 to Rs 473.
However, a few heavyweight scrips looked up modestly on scattered bull support by local operators. HDGC rose smartly by Rs 31.10 to close firm at Rs 2214.80, ONGC was up by Rs 20.45 to Rs 887.30, Infosys moved up by Rs 19.90 to Rs 1847.50, Wipro gained by RS 5.40 to Rs 479.55 and Satyam Comp by Rs 4.75 to Rs 459.80.
As per provisional data, foreign funds sold shares worth a net Rs 999.31 crore on June 20. Domestic funds bought shares worth a net Rs 563.86 crore on same day.
Foreign institutional investors (FIIs) were net sellers of Rs 1254.40 crore in the futures&options segment on June 20. They were net sellers of index futures to the tune of Rs 1429.10 crore and bought index options worth Rs 17.74 crore. They were net buyers of stock futures to the tune of Rs 160.87 crore and sold stock options worth Rs 1.91 crore.