Sensex sheds 200 points on redemption pressure

Mumbai, June 7: Strong volatility, weak global markets and redemption pressure on the mutual funds led to decline of the 200 points on the BSE Sensex, which closed at 9756.76 points compared to the previous close of 9957.32.

Following the global trend, Indian investors liquidated their positions by going for heavy selling of the mutual funds. All the global markets NASDAQ, Dow Jones, NYSE and even the Asian markets like Nikkei, and Taiwan Straits witnessed a meltdown in their stock prices, largely influenced by the US inflation and the statement of the US Federal Secretary regarding consistent hike in the Federal Interest rates.

On the domestic front the refusal of the Oil Ministry regarding any plan to rollback the hike in oil prices has also influenced the stock prices.

The Index heavy weight ONGC is said to bear 90-92 per cent of the oil subsidy of the private oil players, hence its stock price suffered a set back of 4.54 per cent and it last traded on Rs 993.30.

All the sectoral indices on BSE closed in red. Led by Consumer Durables sector which was down by 7.48 per cent, other indices like midcap, smallcap, PSU, Auto and Metals also declined between 3.5 to 7.00 per cent.

Similarly CNX Nifty was also down by 2.62 per cent or 76 points to 2860.45 points from the previous close of 2937.30 points.

The only scrip to have gained on the BSE index was HDFC which was up by 0.11 per cent to Rs 1165.00.

Besides the losers on the BSE were - L&T, Ranbaxy, NTPC, Reliance Energy, ONGC, Hindalco, SBI, Tata Steel, Grasim Industries and Satyam Computers, all of them were down by 3.00 to 7 per cent.

The only scrip which gained on the index was- HDFC up by 0.11 per cent to Rs 1165.00. Besides, the losers were L&T down by 6.59 per cent to Rs 1988.30, Ranbaxy down by 5.97 per cent to Rs 365.25, NTPC down by 5.38 per cent to Rs 100.25, Reliance Energy down by 4.99 per cent to 403.75 per cent, ONGC down by 4.54 per cent to Rs 993.30, Hindalco was down by 4.13 per cent to Rs 154.40, SBI was down by 4.01 per cent to Rs 807.05, Tata Steel was down by 3.96 per cent to Rs 460.80, Grasim Industries was down by 3.44 per cent to Rs 1638.30 and Satyam Computers was down by 3.25 per cent to Rs 615.30.

The breadth in the broader market was in favour of the 2240 declines as against 181 advances out of total 2442 scrips traded on the BSE today.

UNI

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