Sensex plunges 172 points

Market traded in the red throughout the day’s trading session, tracking weak global markets. The volatility was high ahead of expiry of November contracts this Thursday (30 November), where open positions are quite large.

The 30-shares BSE Sensex was down 171.64 points (1.25%) to 13601.95. It moved in a range of 13577.38 and 13691.12.

The S&P CNX Nifty lost 45.70 points (1.15%) to 3923.20

The total turnover on BSE was Rs 4049 crore

Market breadth stayed negative on BSE with 1072 shares advancing as compared to 1465 that declined. 83 remained unchanged. In early trade, the breadth was much weaker.

Among the Sensex pack, 25 declined while the rest advanced.

Frontline IT stocks were the worst hit on profit booking. Satyam Computers (down 2.91% to Rs 451), Wipro (down 2.27% to Rs 588) and Infosys (down 2.79% to Rs 2165) declined. IT pivotals witnessed an across the board fall following decline in their ADRs on Monday. Also the rising rupee against the US dollar caused concern for IT companies, which derive a lion’s share of their venue in dollar. The rupee hit a two-week high on Monday 27 November.

Other major losers from Sensex pack were NTPC (down 2.79% to Rs 149.65), Reliance Energy (down 3.12% to Rs 529) and Reliance Communications (down 3.25% to Rs 471).

Index heavyweight Reliance Industries (RIL) lost 0.28% to Rs 1248.25 on 10.30 lakh shares. It declined from its intra-day high of Rs 1279.95. There are reports that RIL will sell piped gas at discount to LPG.

Hero Honda was the top gainer, up 1.62% to Rs 745 on 6.64 lakh shares. The stock rose following reports that the government is considering cut in oil prices.

Grasim (up 0.65% to Rs 2711), SBI (up 1.37% to Rs 1294.10) and Gujarat Ambuja Cements (up 0.38% to Rs 143.70) were the other gainers.

Among the side counters Donear Industries jumped 6.28% to Rs 165 on high volumes of 70.80 lakh shares while Amar Remedies surged 20% to Rs 63.15 on high volumes of 29.82 lakh shares.

Oil prices rose in Asian trading hours on geopolitical worries and hopes that OPEC will make further cuts in production. The New York Mercantile Exchange's main contract, light sweet crude for January delivery, rose $0.17 to $60.49 a barrel. Brent North Sea crude for January delivery gained $0.16 at $60.60.

All the European and Asia/Pacific markets were trading with losses except New Zealand’s NZX 50 which was up marginally by 0.02%.

The Nikkei average edged lower by 0.19% on Tuesday as losses in Honda Motor Co. and other blue-chip stocks were mostly offset by gains in Softbank Corp. and recently battered stocks such as banks. The Nikkei closed down 30.12 points at 15,855.26

Hang Seng index declined sharply by 2.94% or 564.48 points to 18639.53

US stock indexes sank on Monday, registering their worst day in months, amid concern about Google Inc.'s valuation and doubts about holiday spending after a disappointing sales estimate from Wal-Mart Stores Inc. In addition, downward pressure on the dollar for a fourth straight day hurt demand for US investments, while a rise in crude oil prices above $60 a barrel added to concerns about consumer spending. The Dow Jones industrial average fell 158.46 points, or 1.29%, to end at 12,121.71. The Standard & Poor's 500 Index lost 19.05 points, or 1.36%, to finish at 1,381.90. The Nasdaq Composite Index slid 54.34 points, or 2.21%, to close at 2,405.92.

Mutual funds were net sellers for the second day in a row on Friday 24 November. Mutual funds sold shares worth a net Rs 212.73 crore on 24 November compared to their outflow of Rs 276.24 crore on 23 November.