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Sensex falls below 10K, first time in 2 years

Melting stock prices on Friday pulled down the Bombay Stock Exchange benchmark Sensex below the 10,000 point mark for the first time in over two years.

The 30-share index, which opened higher by 205 points, tumbled by 582.76 points to 9,998.73 in pre-close trading, a level last seen in June 2006.

The wide-based National Stock Exchange index Nifty, which gained 66.65 points at the initial stage, plunged by 196.35 points, or 6 per cent at 3,072.95 points at the same time.

All the sectoral indices, led by realty sector were ruling in the red with steep falls, dragging the Sensex down.

Morning trade

Markets have turned volatile after bouncing back in early trade. Buying is seen in technology, capital goods and oil stocks, while selling in banking, few metal, pharma and FMCG stocks.

At 1022 hrs IST, the Sensex rose 5.90 points to 10,587 and the Nifty gained 16 points to 3,285. BSE Midcap and Small Cap indices rose 0.8 per cent each.

Top losers are ICICI Bank, HDFC Bank, Sterlite Industries, Tata Communication, SBI, DLF, Reliance Communication, HDFC, Tata Power and HUL. However, gainers are Wipro, ONGC, L&T, HCL Tech, Cairn India, TCS, Reliance Industries and ITC.

Breadth is negative; about 1363 shares have advanced while 1583 shares have declined. Nearly 242 shares are unchanged.

Markets @ 0956 hrs IST: Nifty stands above 3300; Cap Goods, IT, Realty stocks up

Markets have bounce back in early trade after sharp cut seen in previous trade, as US markets rebounded sharply in Thursday’s trade. Buying is seen in capital goods, auto, technology, banking, technology and power stocks.

At 0956 hrs IST, the Sensex rose 111 points to 10,692 and the Nifty gained 35 points at 3,304. BSE Midcap and Small cap indices rose over 1 per cent.

Satyam, Tata Motors, Zee Entertainment, Reliance Infrastructure, L&T, BHEL, Siemens, Suzlon, HDFC Bank, TCS and Tata Steel have gained.

Satyam Computer is witnessing volatility after gaining nearly 5 per cent in opening trade, after its Q2 numbers. The company has reported growth of 6.05 per cent in net profit of Rs 580.85 crore as against Rs 547.70 crore, QoQ. Net sales stood at Rs 2819.29 crore versus Rs 2620.83 crore.

Asian markets are trading mixed. The Nikkei and Shanghai rose 2 per cent and 1 per cent, respectively. However, Kospi, Taiwan and Jakarta tumbled 1-3 per cent. Hang Seng and Straits Times fell marginally.

US markets closed firm after a hugely volatile session. A late-day rally gave the Dow a triple-digit boost after a 700 point intra-day swing. Unwinding of hedged options on the S&P 500 ahead of October options expiry was one of the factors for the volatility in the market.

The expiration triggered several big buys at the end of the day. Dow gained 401.35 points, or 4.68 per cent, to 8,979.26. The S&P 500 index advanced 38.59 points, or 4.25 per cent, to 946.43, and the Nasdaq composite index added 89.38 points, or 5.49 per cent, to 1,717.71.

October 17, 2008 Posted by | Business, General | , , , , , , , , , , , , , , , , , , , , , , | Leave a comment