Sensex plunges by 207.83 points

Mumbai, Aug 9: The Bombay Stock Exchange (BSE) Sensex today plunged by 207.83 points to settle in the red at 15,100.15 on intense selling pressure at higher levels, induced by bearish European and Asian indices.

''The market witnessed a complete trend reversal today. It started declining sharply since mid-afternoon trade on intense selling pressure at higher levels, after European indices opened weak and Asian indices also started coming off their highs. Earlier, trading had resumed on an optimistic note at 15,452.44 on buying demand for index pivotals, tracking firm US markets overnight,'' market participants rued.

Among the broader markets, the National Stock Exchange (NSE) S&P CNX Nifty also tanked around 59 points to close in negative terrain at 4,403.20 from its previous close of 4,462.10, after opening marginally higher at 4,462.25 and oscillating between 4,530.05 and 4,390.80 during trading hours.

''All the European markets were trading lower today as BNP Paribas suspended redemptions from three funds citing problems in US subprime mortgages. The news came just at a time when worries about global credit problems arising from US subprime mortgatge woes appeared to be easing,'' market analysts explained.

The market breadth, which was strong till mid-afternoon trade on the BSE, turned negative later, as small-cap and mid-cap stocks succumbed to selling pressure, market players lamented.

BSE data showed that 1,660 shares have declined while 1,065 have advanced and 51 remained unchanged. The total turnover here amounted to Rs 5,036 crore. Among the 30-member Sensex pack, 23 declined while the rest advanced.

The laggards included Infosys Technologies, Satyam Computers, TCS, Hindalco Industries, SBI, Reliance Energy and Reliance Industries (RIL), while Bharat Heavy Electricals, Cipla, Dr Reddy's Laboratories and ICICI Bank were the day's leaders.

Asian markets eased from higher levels today. Hong Kong's Hang Seng lost 0.43 per cent at 22,439.39, while other indices like Nikkei, Taiwan Weighted Seol Composite and Shanghai Composite were only marginally higher.

US stocks had surged yesterday a day after the Federal Reserve said the economy should keep expanding. The Dow Jones Industrial Average rose 153.56 points, or 1.14 per cent, to 13,657.86. The Standard&Poor's 500 index rose 20.78 points, or 1.41 per cent, to 1,497.49. The technology-dominated Nasdaq Composite index advanced 51.38 points, or 2.01 per cent, to 2,612.98.

India's biggest aluminium company Hindalco Industries slipped 3.77 per cent to Rs 155.75 on 8.72 lakh shares. It was the top loser from the Sensex pack. Information technology (IT) shares declined on a sharp rally yesterday, after the government tightened external commercial borrowing (ECB) norms.

In early trade, the Indian rupee was trading at 40.51 against the US dollar.

India's leading power equipment maker Bharat Heavy Electricals was up 1.26 per cent to Rs 1,734. The stock surged after it bagged a contract worth Rs 2,900 crore for building three 500-megawatt units in north India. It was the top gainer from the Sensex pack.

Cipla was up 0.67 per cent to Rs 187.55, and Dr Reddy's Laboratories rose 1.23 per cent to Rs 638 as they are considered as defensive shares in a falling market, technical analysts said.

ICICI Bank, the country's largest private sector bank in terms of net profit, rose 0.37 per cent to Rs 887.10, on reports that the Foreign Investment Promotion Board (FIPB) is expected to reconsider the much-discussed proposal of infusion of foreign funds into its holding company at its next meeting on August 17.

India's largest private sector enterprise Reliance Industries (RIL) lost 1.91 per cent to Rs 1,839.80 on 10.55 lakh shares. RIL is understood to be keen on picking up a stake in the proposed 4,00,000-barrel-a-day Jizan refinery project in Saudi Arabia.

SBI and Reliance Energy were the other losers from the Sensex pack.

Omaxe was trading at Rs 349.95 on the BSE, a premium of 12.90 per cent over it's initial public offer (IPO) price of Rs 310. The stock debuted at Rs 400 to hit a low of Rs 341.50 and high of Rs 410 during the day. 1.20 crore shares changed hands at the BSE counter.

The IPO of Omxe had received strong investor response. It was subscribed 68 times. The company had priced the IPO at the top end of the Rs 265 to Rs 310 price band. The National Stock Exchange (NSE) has included Omaxe in futures&options (F&O) segment. The lot size of Omaxe in F&O is set at Rs 650.

Crude prices continued to hover around the USD 72 mark on signs that US gasoline demand may have peaked as the summer driving season neared close. It was trading at USD 72.33, up USD 0.18, on the Nymex in early morning trade.

UNI