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Friday, December 09, 2011

Sensex closes 389 points lower on heavy selling


Relentless selling pressure across the board dragged the Sensex 389 points lower and the Nifty 119 points down

Headlines for the day

Food Inflation at 6.6% versus 8%

2G scam: Court to decide on Swamy's plea against Chidambaram

Domestic sales of cars up by 7%, bikes by 22.67% in November

FM says FDI in retail suspended to avoid mid-term polls



Indian indices

Investors sold heavily across the board ahead of European Union summit, which led the Indian markets to close the session with deep cuts. Demand of BJP led opposition parties for resignation of Home Minister P Chidambaram on his alleged role in 2G spectrum case added to market woes. Heavyweight draggers — RIL, L&T, ITC, JP Associates, ICICI Bank, HDFC Bank and SBI.

Doubts about domestic policy reforms and a resolution to the ongoing euro zone debt crisis kept investors jittery. Markets shrugged off firm European cues and moderating food inflation.

Sensex movements: The Sensex began the trade 57 points lower at 16820. Later, the index slipped further and remained under pressure as the session progressed. In late trade, the index hit an intraday low of 16423 on all-round selling. The Sensex stood 389 points lower at 16488 and the Nifty closed at 4944, down by 119 points.

Market sentiment

The market breadth stood weak. Of the 2868 stocks traded on the BSE, 842 (29.36%) advanced, 1910 (66.60%) dropped and 116 (4.04%) were unchanged.

Viewing volumes

Wind turbine major - Suzlon Energy saw highest trading with over 0.48 crore shares changing hands on the BSE. Then comes, a major Indian telecommunication company - Reliance Communications (0.36 crore shares), India's second largest developer - Unitech (0.32 crore shares), industrial finance company – IFCI (0.32 crore shares) and a Jaypee Group firm - Jaiprakash Associates (0.29 crore shares).

Sectoral & stock screening

All the 13 sectoral indices closed in the red zone. The biggest losers — BSE CG dipped by 4.40%, BSE Realty slipped by 3.80% and BSE Metal fell by 3.15%. Remaining ten dipped in the range of 0.37 to 3.02%.

In 'A' group stocks, top performers — United Breweries surged by 9.34%, UTV Software Communications up by 3.04% and Wipro rose by 2.35%. Top losers — GMR Infrastructure fell by 7.57%, CESC lost by 7.23% and Manappuram Finance declined by 7.11%.

Global indices

The European shares advanced on Thursday (December 08, 2011), ahead of a European Central Bank meeting that is expected to cut interest rates, the first act in two crunch days for efforts to quell the euro zone's debt crisis.

The Asian stock markets fell on Thursday on profit-taking as market players turned cautious ahead of key events in Europe.

The US stock index futures pointed to a dip at the open on the Wall Street on Thursday.

Market Outlook: Jobless Claims will be out in the US on Thursday.