The countrys stock markets were hit by selling that saw the benchmark index of the BSE shed 2,000 points intra-day before rallying marginally later in the afternoon on Monday.
Marketmen put it down to a combination of weaker global economic outlook, liquidity sucked out by a couple of recently launched IPOs and forcible liquidation of securities pledged by investors who were unable to meet the margin on their outstanding loans.
According to the provisional data with the exchange, the foreign national investors sold shares worth Rs 3,296.73 crore worth of shares, while the domestic investors were net buyers to the tune of Rs 3,399.20 crore. Retail investors also bought shares worth Rs 421.39 crore even as proprietary trading offloaded shares worth Rs 534.16 crore.
There was a pullback towards the close. Sensex finally closed 1,408 points down at 17,605 suffering a 7.40 per cent loss. NSEs CNX S&P Nifty was down even further closing 8.70 per cent lower - a loss of 496.50 points at 5,208.
There was hardly any stock that survived the days bloodbath as stock after stock ended lower. All the Sensex stocks ended in the red; the BSE 100 did likewise. Only two of the BSE 200 stocks and just five of the BSE 500 survived the red coat.
Mr Raamdeo Agrawal, Co-founder and Director of Motilal Oswal Financial Services Ltd, credited the fall, among other things, to irrational exuberance in the IPO market and local valuations that had become too optimistic. But he expected things to improve.
Mid-cap stocks were hit even harder. Some of the stocks that saw a mad bull run in recent times were brought down to earth. Essar Oil fell 31.55 per cent at Rs 185.75, Nagarjuna Fertiliser fell 31 per cent to Rs 42.65, Housing Development and Infrastructure Ltd over 28 per cent and sugar company Bajaj Hindustan also fell over 28 per cent.
Even brokerage stocks were not spared.
"Stocks of most brokerage stocks too lost around 19-20 per cent", said Ms Anita Gandhi, Head of Institutional Buiness, Arihant Capital Markets Ltd.
Recently listed Edelweiss Capital fell by 21 per cent; India Infolines final tally showed a fall by 15.60 per cent and Motilal Oswal Financial Services lost 13.09 per cent while their intra-day losses were close to 20 per cent as per the BSE.
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| Posted : 1/22/2008 |
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