Commodity market turmoil pushes Sensex 111 points lower

After showing some recovery during the day, the Indian markets fell again and closed the volatile session on a lower note

Major headlines

Dr Reddy, JB Chemicals scrap proposed Russian deal

Titan Industries slips as gold prices fall

Gold, Silver decline on recession fears

EIH, EIH Associate spurts on new takeover code

Coal India falls as workers to strike on October 10

Finance Ministry considers trimming STT



Indian indices

The Indian markets continued to fall for the fourth straight session on continuous selling in consumer durables, metal, PSU, oil & gas and capital goods stocks. A drastic fall in international commodity price too weighed on the market today. Though a rebound in global equities helped the markets to erase some of its losses coupled with some buying at lower levels.

Sensex movements: The Sensex started the new week 47 points higher at 16209 and fell immediately to hit the day’s low of 15801 in mid-morning session on all-round selling. Then the index began to trim losses on reports that the Union Finance Ministry is reportedly considering trimming the Securities Transaction Tax (STT) alongwith some recovery in European stocks. In the afternoon session, the index erased all its losses and touched the day’s high of 16209. The Sensex closed 111 points lower at 16051 and the Nifty fell 32 points to settle at 4835.

Market sentiment

The market breadth stood extremely weak, with 786 shares rising and 1966 shares declining.

Sectoral & stock screening

All the sectors closed in the negative zone except BSE TECk up by 0.50% and BSE IT up by 0.42%. Top losers - BSE CD lost by 4.95%, BSE Metal declined by 2.87%, BSE PSU down by 1.77% and BSE Oil & Gas slipped by 1.56%. Remaining losers stood in the range of 0.20-1.39%.

In 'A' group stocks, top gainers - Bank of Baroda rose by 3.65%, Indiabulls Financial Services surged by 3.55% and Indian Bank up by 3.24%. Top losers - Titan Industries declined by 7.27%, Hindustan Zinc down by 5.90% and Jain Irrigation Systems fell by 5.88%.

Viewing volumes

Industrial finance company - IFCI was traded the most with over 0.39 crore shares changing hands on the BSE. Then comes India's Jaypee Group firm - Jaiprakash Associates (0.31 crore shares), India's second largest developer - Unitech (0.28 crore shares), wind turbine major - Suzlon Energy (0.25 crore shares) and an integrated infrastructure development company - Lanco Infratech (0.21 crore shares).

Global Indices:

The European stocks gained, erasing earlier losses, on Monday as finance ministers and central bankers urged policy makers in Europe to intensify efforts to contain the region's debt crisis.

The Asian stocks fell sharply on Monday, adding to recent losses, as a lack of apparent progress on Europe's sovereign-debt problems fueled risk aversion and sent investors out of equities.

The US stock index futures pointed to a positive opening on the Wall Street on Monday.

Market Outlook: US New Home Sales will be out on Monday.