Sensex ends 265.75 points lower on global worries

Indian markets dropped on Tuesday erasing earlier gains. Markets opened in the negative terrain tracking weak global cues like concerns of spillover of Ireland`s debt crisis to other European nations like Portugal and Greece, China`s high inflation and domestic 2G spectrum allocation issues.



Later, in the noon trades, the index witnessed a plunge following reports of North, South Korea trading artillery fire. Panic selling intensified and dragged Nifty to its lowest level of the day at 5,824.95 but recovered in the late afternoon trade and closed at 5,934.75. All the BSE sectoral indices settled in red with Realty index plunging the most, down 3.3% followed by the PSU index that lost 1.8%.

``Key indices fell sharply as reports of hostility between the South and North Korea further dampened sentiment, already hit by European debt worries. However, a late recovery from the support of 5,800 in afternoon trading session helped Nifty to trim much of its losses. Going ahead, the undertone continues to be fragile given the anxiety surrounding the geo-political concern, Indian political scandals and Euro zone situation,`` said Amar Ambani, Head of Research, IIFL.

Dipen Shah, Senior Vice President (PCG Research), Kotak Securities, ``The markets turned weak likely on the news of tensions between South Korea and North Korea. We believe that, while this may have a temporary sentimental impact, the fundamentals of the Indian economy are not expected to be impacted. To that extent, this fall can be utilized as an opportunity to buy fundamentally sound stocks with a medium term perspective.``

At the close, the benchmark 30-share index, BSE Sensex lost 265.75 points or 1.33% at 19,691.84 with 28 components registering drop. Meanwhile, the broad based NSE Nifty went down by 75.25 points or 1.25% at 5,934.75 with 44 components posting drop.

Sensex Movers

Reliance Industries contributed fall of 38.85 points in the Sensex. It was followed by I C I C I Bank (32.75 points), State Bank Of India (30.82 points), I T C (22.99 points) and Housing Development Finance Corporation (17.81 points).

However, Sun Pharmaceutical Industries contributed rise of 3.48 points in the Sensex. It was followed by Maruti Suzuki India (3.47 points), Hindustan Unilever (1.39 points), Hero Honda Motors (0.1 points) and Larsen & Toubro (0.28 points)

Biggest gainers in the 30-share index were Maruti Suzuki India (1.35%), and Hindustan Unilever (0.33%).

On the other hand, Tata Power Company (3.04%), State Bank Of India (2.83%), Bharti Airtel (2.30%), Reliance Communications (2.18%), Sterlite Industries (India) (2.11%), and Hindalco Industries (2.09%) were the major losers in the Sensex.

Mid & Small-cap Space

The BSE Midcap index was at 8094.24 down by 86.24 points or by 1.05%. The major losers were Aban Offshore (4.14%), Alstom Projects India (3.1%), Core Projects and Technologies (2.93%), Ackruti City (2.07%) and A I A Engineering (0.72%).

The BSE Smallcap index was at 10210.23 down by 177.01 points or by 1.7%. The major losers were A K Capital Services (2.58%), A B G Infralogistics (2.53%), INEOS ABS (India) (2.48%), Provogue (India) (1.78%) and Abhishek Industries (1.72%).


Sectors in Limelight

The Realty index was at 3,131.70, down by 105.54 points or by 3.26%. The major losers were D B Realty (8.19%), Indiabulls Real Estate (5.18%), Anant Raj Industries (2.33%), Ackruti City (2.07%) and D L F (1.12%).

The IPO index was at 2,034.85, down by 43.87 points or by 2.11%. The major losers were Aqua Logistics (2.3%), Adani Power (1.49%), Ashoka Buildcon (1.47%), Bajaj Corp (0.35%) and Aster Silicates (0.12%).

The PSU index was at 9,580.20, down by 180.39 points or by 1.85%. The major losers were Bank Of Maharashtra(3.17%), Bank Of India (2.36%), Andhra Bank (2.01%), Allahabad Bank (0.37%) and Balmer Lawrie & Company (0.24%).

The Metal index was at 16,367.55, down by 297.59 points or by 1.79%. The major losers were Hindalco Industries (2.09%), JSW Steel (1.86%), National Aluminium Company (1.77%), Jindal Steel & Power (1.39%) and Hindustan Zinc (0.09%).

Market Breadth

Market breadth was negative with 819 advances against 2,221 declines.

Value and Volume Toppers

State Bank Of India topped the value chart on the BSE with a turnover of Rs. 2,912.16 million. It was followed by Gravita India (Rs. 1,856.42 million), Coal India (Rs. 1,292.74 million) and Reliance Industries (Rs. 977.11 million).

The volume chart was led by Karuturi Global with trades of over 10.29 million shares. It was followed by Alok Industries (9.51 million), Gravita India (7.13 million) and Mahindra Satyam (5.70 million).