The Sensex was down sharply in noon trade on jitters over the US financial system, following investment bank Lehman's plans to file for bankruptcy protection. The BSE 30-share index was down 724.24 points. The financial upheaval also involved other US institutions. Bank of America has agreed to acquire Merrill Lynch & Co for $50 billion in an all-stock deal that will give the US bank the world's largest brokerage.
Index heavyweight Reliance Industries (RIL) plunged to 52-week low below Rs 1850. IT and real estate stocks suffered severe setback. All the 30-members from the Sensex pack suffered losses.
Asian markets were trading lower today, 15 September 2008. Key benchmark indices in Taiwan and Singapore fell 4.09% and 2.90%. Most major Asian equity markets were closed for public holidays.
At 11:21 IST, the BSE 30-share Sensex was down 724.24 points or 5.17% to 13,276.26. The Sensex opened with a downward gap of 408.76 at 13,592.05. At the day’s low of 13,217.47 hit in mid-morning trade, the Sensex lost 783.34 points.
The S&P CNX Nifty was down 223.10 points or 5.28% to 4,005.30 after sliding to a low of 3982.30
The market breadth was weak with close to 10 losers for every gainer. On BSE, 2002 shares declined as compared to just 202 that rose. 32 remained unchanged.
The BSE Mid-Cap index fell 5.42% to 5,237.30 and BSE Small-Cap index lost 4.86% to 6,385.05.
All the 30-members from the Sensex pack suffered losses.
IT pivotals tumbled due to heavy selling on reports that hedging positions taken by the companies are improper with rupee falling to two-year low against the dollar. India’s fourth largest software services exporter Satyam Computer Services plunged 8.66% to Rs 371.35 on 2.79 lakh shares. It was the top loser from Sensex pack. The stock recovered from early low of Rs 355.
Other IT stocks Wipro (down 6.67% to Rs 391.75), Infosys (down 6.18% to Rs 1542.50), TCS (down 5.96% to Rs 760), edged lower.
India’s largest private sector firm in terms of market capitalization and oil refiner Reliance Industries slumped 4.02% to Rs 1853 on 6.36 lakh shares. The stock hit a 52-week low of Rs 1833.25 in early trade. The stock slumped on reports the government may impose a special oil tax on the domestic crude oil production under the New Exploration Licensing Policy.
Realty shares cracked on intense selling pressure. DLF (down 7.89% to Rs 431), Unitech (down 9.31% to Rs 140.70), Indiabulls Real Estate (down 11.51% to Rs 22380), Purvankara Projects (down 17% to Rs 140), Orbit Corporation (down 18% to Rs 226), slumped.
India's largest private sector bank in terms of net profit ICICI Bank slipped 5.26% to Rs 618.50. India’s largest state run bank in terms of net assets State Bank of India fell 5.62% to Rs 1427.30
Reliance Infrastructure (down 8.10% to Rs 850.20), Jaiprakash Associates (down 7.14% to Rs 146.30), and Sterlite Industries (down 8.04% to Rs 447.95), edged lower from Sensex pack.
Among side counters, Indiabulls Securities (down 12.26% to Rs 49.75), Aptech (down 12.03% to Rs 197), Dish TV (down 11.79% to Rs 31.80), Adlabs Films (down 9.90% to Rs 437), and ICSA India (down 10.74% to Rs 290), slumped.
Sun Pharmaceuticals Industries declined 1.44% to Rs 1466 even as the company said on Friday, 12 September 2008, it has received US Food and Drug Administration approval for the generic Fosamax, alendronate sodium tablets.
Crompton Greaves slumped 6.94% to Rs 234.50 after the company said it has acquired US-based electric power systems contractor, MSE Power Systems, and two of its group firms for an enterprise value of $16 million. The company made this announcement before trading hours today, 15 September 2008.
US light crude for October 2008 delivery fell $1.52 to $99.66 a barrel today, 15 September 2008 on early signs that Hurricane Ike may have spared key Gulf Coast infrastructure, although traders were cautious on Monday as they awaited status reports on more Texas refineries.
US markets ended mixed on Friday, 12 September 2008, amid uncertainty over the fate of troubled investment bank Lehman Brothers. But shares of natural resource companies and utilities gained as commodity prices rose, offsetting losses among financial and bank shares. The Dow Jones industrial average slipped 11.72 points, or 0.10%, to 11,421.99. The S&P 500 index gained 2.65 points, or 0.21%, to 1,251.70, and the Nasdaq Composite index advanced 3.05 points, or 0.14%, 2,261.27.
Back home, heavy selling pressure in pivotals pulled the market sharply lower on Friday, 12 September 2008. The BSE 30-share Sensex lost 323.48 points or 2.26% to 14,000.81. and the S&P CNX Nifty was down 61.85 points or 1.44% to 4,228.45, on that day.
Weak global cues pulled the market sharply lower in the week ended Friday, 12 September 2008. The 30-share BSE Sensex shed 483.02 points or 3.33% to 14,000.81 and the S&P CNX Nifty fell 123.85 points or 2.84% to 4228.45, on that day.