Some recovery likely
The free fall continued on the bourses as the benchmark Sensex further lost 400 points wiping off over 900 points in three trading session. Sharp fall in the industrial output and further heavy sell off’s in the heavy weights like ABB, ACC, SBI, BHEL, RIL and ONGC dragged NSE Nifty by over 130 points. The Capital Good and the Banking index led the sharp fall, with BSE Capital Goods index dropping 4.14% and BSE Bank index down 3.23%. Finally, the BSE benchmark Sensex lost 404 points to close below the 13000 mark at 12995. NSE Nifty dropped 132 points to close at 3716.
Aurobindo Pharma lost 4.2% to Rs641 after the company secured MEB Netherlands nod for Simvastatin. The scrip touched an intra-day high of Rs685 and a low of Rs632 and recorded volumes of over 3,00,000 shares on NSE.
Airways dropped 5.3% to Rs596. The company announced that they would start flights to US, China next year. The scrip touched an intra-day high of Rs690 and a low of Rs552 and recorded volumes of over 4,00,000 shares on NSE.
ICICI Bank was down 2% to Rs803. The Board of Directors of the company approved the merger of The Sangli Bank Ltd. with itself. Deloitte Haskins & Sells have recommended a share exchange ratio of 100 shares of ICICI Bank for 925 shares of Sangli Bank. The scrip touched an intra-day high of Rs832 and a low of Rs772 and recorded volumes of over 16,00,000 shares on NSE.
Bank of India plunged by over 10% to Rs164. The company would buy more than 50% stake in Indonesia's PT Bank Swadesi. The scrip touched an intra-day high of Rs185 and a low of Rs158 and recorded volumes of over 51,00,000 shares on NSE.
Capital Good index was the major loser, the index lost by 4.14%. L&T, Siemens, ABB and Punj Lloyd were among the major losers.
Metal stocks further lost their shine. National Aluminum dropped 4.5% to Rs198, Hindalco declined 3.5% to Rs167, SAIL was down 2.1% to Rs82 and Sterlite industries fell 5.4% to Rs502.
Pharma stocks were bad health. Glaxo slipped 5.6% to Rs109; Ranbaxy lost over 4.3% to Rs359, Cadila was down 3% to Rs315 and Cipla declined 1% to Rs240.
Cement stocks also were under the bear attack. ACC dropped over 6.5% to Rs968, Gujarat Ambuja slipped 4.4% to Rs131, India Cement lost over 11% to Rs190 and Grasim plunged over 7.2% to Rs2507.
Banking stocks continued its downtrend after RBI hiked CRR by 50 basis points yesterday. SBI fell 5.1% to Rs1181 and ICICI Bank lost 2% to Rs803. Among the Mid-Cap stocks Union Bank, Bank of India and Canara bank were among the major losers losing over 10% each.
Telecom stocks were also ringing low. Index heavy weight Bharti Airtel dropped 5% to Rs575, Reliance Communication dipped 6.2% to Rs403, VSNL was down 5% to Rs381 and MTNL lost 2.6% to Rs127.
Oil & gas stocks also ended lower. HPCL dipped 2.8% to Rs258 and BPCL fell over 2 % to Rs318. Oil Exploration stocks like ONGC and Reliance Industries were among the major losers.