Monday, July 6, 2009

Indian Market Down With Big Losses

. Monday, July 6, 2009

By stockOzone team

The Sensex went crashing down to 14,147.80 this afternoon as stocks went into a tailspin on a severe bout of selling pressure. Widening fiscal deficit, lack of concrete proposals with regard to disinvestment and oil prices decontrol and lower than expected rise in income tax exemption limit are some of the negatives from the budget that have contributed to the market's sharp plunge this afternoon.

Despite recovering to 14.375, the Sensex is still deep down in the red with a massive loss of 538.05 points or 3.61% at present. The Nifty index of the National Stock Exchange, which fell to 4195.40, is currently down with a loss of 167.15 points or 3.78% at 4257.10.

Bank stocks have taken a hammering. Mirroring their fall, the Bankex has tumbled by as much as 5.6%. Realty stocks, which got off to a rousing start this morning, are down in the red with big losses and mirroring sharp erosion in prices, the BSE Realty index has lost 5.43%.

Metal, power, PSU and capital goods stocks are also being hammered. Automobile, oil, information technology and pharma stocks are trading weak as well. Select FMCG and consumer durables stocks have bucked the trend and posted notable gains.

Heavy selling is seen at several counters in midcap and smallcap segments as well. The BSE Midcap index is down by 3.2% while the Smallcap barometer is down with a loss of 2.74%.

The market breadth is very weak. Out of 2424 stocks traded on BSE, as many as 1726 stocks are down in the red. 629 stocks have posted gains and 69 stocks trade flat.

ICICI Bank, HDFC and Jaiprakash Associates are down by 7% - 7.75%. Reliance Infrastructure has lost 6.6%. Tata Steel is down by 6.35%. Tata Steel and Sterlite Industries have lost 5.6% and 5.1% respectively.

ACC, Reliance Communications, Tata Power, HDFC Bank, ONGC, State Bank of India, DLF, Grasim Industries, Hindalco, NTPC, Larsen & Toubro, Mahindra & Mahindra, Wipro, Bharti Airtel, Hero Honda, BHEL, Infosys Technologies, Sun Pharmaceuticals and Reliance Industries have also posted sharp losses.

ABB, Reliance Capital, Axis Bank, Nalco, Jindal Steel, Ambuja Cements, Tata Communications, Reliance Power, Unitech, Idea Cellular, SAIL, BPCL, Siemens, Power Grid Corporation, Suzlon Energy and Punjab National Bank are among the prominent losers in the Nifty index.

ITC and Cairn India have bucked the trend and posted handsome gains. Ranbaxy Laboratories, Hindustan Unilever, Cipla and Tata Consultancy Services are down with marginal losses.

Disclosure: Author does not own any of the stocks discussed here.

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