Market plunges on global cues

The market fell today as the prospects of a recession in the United States triggered a sell-off in the global markets. The market remained subdued for the day although it made some recovery from its lows in the late trade. Reliance Industries, ICICI Bank and Reliance Energy recovered from its lows in late trade. All the BSE sectoral indices were ended in red.

HDFC Bank and Reliance Communications were major losers from the Sensex pack. Capital goods, metal, realty and power stocks were worst hit. The market breadth was weak.

European markets, which opened after Indian markets, were weak. Asian markets, which opened before Indian markets, were trading in the red throughout the day.

Nifty January 2008 futures were at 5950, at premium of 14.25 points compared with spot closing of 5935.75.

The NSE futures & options (F&O) segment turnover was Rs 80,606.24 crore, which was higher than Rs 65,569.15 crore on Tuesday, 15 January 2008.

The 30-share BSE Sensex declined 382.98 points or 1.89% to 19,868.11. Sensex hit a low of 19,513.25 in mid-afternoon trade. At day’s low, Sensex shed 737.84 points.

The broader CNX S&P Nifty fell 138.5 points or 2.28% to 5,935.75.

The BSE Mid-Cap index was down 1.75% to 9,267.20. The BSE Small-Cap index was down 1.83% to 12,522.22. Both these indices outperformed the Sensex.

The BSE FMCG index (down 2.05% to 2,305.98), PSU index (down 2.26% to 10,071.51), Capital Goods index (down 2.47% to 18,673.80), Metal index (down 3.17% to 18,020.25), Power index (down 3.67% to 4,462.33) and Realty index (down 4.44% to 12,825.31). All these indices underperformed the Sensex.

The BSE IT index (down 0.71% to 3,882.88), Bankex (down 0.77% to 12,163.85), HealthCare index (down 0.95% to 4,125.40), Auto index (down 1.2% to 5,271.09). All these indices outperformed the Sensex.

The market breadth was weak. On BSE, 613 shares advanced as aginst 2,215 shares that declined whereas 31 remained unchanged. 24 out of 30 Sensex stocks were in red.

India’s largest private sector firm by market capitalisation and oil refiner Reliance Industries fell 2.01% to Rs 3,098.35. It recovered from session's low of Rs 3,032.60 in late trade.

India’s second largest software exporter by sales Infosys Technologies was down 0.51% to Rs 1,494.15.

ICICI Bank rose 1.32% to Rs 1,369.20 . It recovered from session's low of Rs 1,310.90 in late trade.

Tata Consultancy Services (up 0.67% to Rs 944.50), Mahindra & Mahindra (up 0.52% to Rs 739.05), Bharti Airtel (up 0.88% to Rs 864.85) and Cipla (up 0.34% to Rs 205.25), were the gainers from the Sensex pack.

Reliance Communications declined 5.89% to Rs 731.65. HDFC Bank down 6.12% to Rs 1,675.85.

Reliance Energy declined 4.14% to Rs 2,266.60. It recovered from its lows of Rs 2,167. The mega initial public issue of Anil Dhirubhai Ambani group's Reliance Power became the largest ever in India after over-subscription of more than 10.5 times on its opening day on Tuesday, 15 January 2008.

Capital goods stocks were down. Larsen & Toubro (down 1.78% to Rs 3,989.90), Bharat Heavy Electricals (down 4.42% to Rs 2,308.90) and Suzlon Energy (down 3.06% to Rs 1,983.60), edged lower.

Realty stocks declined. Unitech (down 6.2% to Rs 487.30), Omaxe (down 9.49% to Rs 439.65), DLF (down 4.12% to Rs 1,127.60), Indiabulls Real Estate (down 5.34% to Rs 701.05), edged lower.

Metal stocks fell. Tata Steel (down 3.91% to Rs 818.55), Sterlite Industries (down 6.21% to Rs 926.25), and Hindalco Industries (down 3.41% to Rs 191.05), edged lower. Steel Authority of India rose 1.03% to Rs 245.20.

Power stocks slumped. Tata Power Company (down 5.63% to Rs 1,459.25), NTPC (down 5.55% to Rs 258.80) and Power Grid Corporation of India (down 2.23% to Rs 135.85), edged lower.

Reliance Natural Resources clocked the highest volume of 2.84 crore shares on BSE. The scrip declined 0.58% to Rs 216.10. Ispat Industries clocked the second highest volume of 1.35 crore shares. The scrip declined 1.85% to Rs 63.70. Reliance Petroleum clocked the third highest volume of 1.16 crore shares. The scrip edged up 0.57% to Rs 220.95. IFCI clocked the fourth highest volume of 98.4 lakh shares on BSE. The scrip rose 1.54% to Rs 85.75. Cybermate Infotek clocked the fifth highest volume of 92.2 lakh shares on BSE. The scrip gained 0.53% to Rs 15.09.

Reliance Natural Resources clocked the highest turnover of Rs 600.70 crore on BSE. Reliance Industries (Rs 303.60 crore), Reliance Energy (Rs 285.37 crore), Reliance Petroleum (Rs 253.71 crore) and Reliance Communications (Rs 233.16 crore) were other turnover toppers on BSE in that order.

European markets were weak. France’s CAC 40 (down 0.81% to 5,208.27), Germany’s DAX (down 1.18% to 7,477.03) and UK’s FTSE 100 (down 1.13% to 5,957.50) edged lower.

Asian markets were trading lower today, 16 January 2008. Hong Kong's Hang Seng, Japan's Nikkei, Taiwan's Taiwan Weighted, South Korea's Seoul Composite and Shanghai Composite slipped 2.4- 5.37%.

US markets plunged more than 2% on Tuesday, 15 January 2008 after Citigroup posted first-ever quarterly loss and disappointing holiday shopping numbers fueled fears that the economy was heading into a recession. Citigroup was hurt by a $18.1-billion write-off due to exposure to Sub prime mortgages and other risky debt, posted a net loss of $9.83 billion. The bank has reduced its dividend by 41%, and cut 4,200 jobs. The stock was down 7.30%.

The Dow Jones plunged 277.04 points, or 2.17%, to 12,501.11. The Standard & Poor's 500 index slipped 35.30 points, or 2.49%, to 1,380.95, and the Nasadaq composite index fell 60.71 points, or 2.45%, closing at 2,417.59 on Tuesday, 15 January 2008.