Mumbai, Jan 9: The benchmark indices continued the downtrend for the second consecutive day and ended sharply lower amid high volatility. Shares of oil exploration, capital goods, metal, telecom, and select power and banking companies witnessed a steep fall. Sell-off was also seen in broader indices. However, shares of major technology, FMCG, oil marketing and select auto companies as well as NTPC remained on the higher side.
The culprit, no wonder, was Satyam again, which saw a sharp cut today as well. The stock touched a new 52-week low of 6.30 on the NSE and lost around 41per cent, to close at Rs 23.75. It traded with volumes of 215,407,478 shares, an increase of 149.28 per cent compared to its five-day average of 86,411,144 shares.
Satyam traded on on the BSE Sensex and NSE Nifty for last time on Friday — it was announced that Satyam would be replaced by Sun Pharma and Reliance Capital respective on the two indices.
The 50-share NSE Nifty went closer to the 2,800 level and hit a low of 2810.25 during the day. It shut shop at 2,873, down 1.62 per cent or 47.40 points from the previous close. The 30-share BSE Sensex was down more than 300 points during the day and touched a low of 9,250.82. It was down by 180.41 points or 1.88 per cent to settle at 9,406.47.
Sensex bounces back as realty recover
Equities staged a strong come-back in the afternoon as traders covered short positions in realty stocks while metals fell further and IT stocks bucked the trend.
At 2:10 pm, Bombay Stock Exchange"s Sensex was at 9545.94, down 40.94 points or 0.43 per cent. The 30-share index touched a high of 9630.40 and a low of 9250.82.National Stock Exchange"s Nifty was at 2895.65, 2898.70, down 22.90 points or 0.85 per cent. The broader index touched a low of 2810.25 and a high of 2929.85.
BSE Midcap Index was down 2.49 per cent and BSE Smallcap Index declined 2.76 per cent.
Amongst the sectoral indices, BSE Realty Index which had fallen over 20 per cent in intra-day trade recovered from lows but was 1.23 per cent down, BSE Metal index was fell 5.92 per cent, BSE Capital Goods Index declined 3.83 per cent.
Nifty tests 2850; Realty index down over 20 per cent
The markets are witnessing huge selling pressure amid volatlity, as capital goods, telecom, power, metal, realty, select banking stocks as well as RIL, Satyam and Reliance Petroleum are extermely weak. Midcap and small cap indices lost over 3.5 per cent. However, buying is seen in technology (barring Satyam) stocks as well as ONGC, HUL, ITC and HDFC.
The Nifty has tested 2850, an important support level. It plummeted 83 points to 2,837 and the Sensex went down 242 points to 9,344, at 11:10 hours IST.
Market breadth is extremely weak; about 625 shares have advanced while 2150 shares declined. Nearly 90 shares are unchanged.
BSE Realty Index plunged over 20 per cent, as DLF lost over 26 per cent and Unitech fell over 14 per cent.
Technology stocks are witnessing buying interest barring Satyam. Infosys and TCS went up 4-5 per cent and Wipro gained 0.6 per cent. However, Satyam tumbled 53 per cent.
Mkts open lower; Satyam downfall continues
Equities opened with a huge gap-down Friday as wary investors after the Satyam Computer Services fiasco unwound long positions and created fresh new shorts as well. Press conference by the Satyam"s new management to clear air on the company"s position didn"t go down well with the market, as the share plunged sharply lower.
Bombay Stock Exchange"s Sensex was at 9434.85, down 152.03 points and National Stock Exchange"s Nifty was at 2857.10, down 63.30 points.
Shares of Satyam Computers plunged to Rs 14.70, down 63.48 per cent. The stock fell to a low of Rs 6.30 in early trade.
OneIndia News (With inputs from Agencies)