ID :
26522
Sat, 10/25/2008 - 15:47
Auther :
Shortlink :
http://m.oananews.org//node/26522
The shortlink copeid
Sensex tanks 1,071 points as monetary policy disappoints
Mumbai, Oct 24 (PTI) Dalal Street Friday witnessed a
bloodbath, when the benchmark Sensex lost nearly 1,100 points
and investors Rs 300,000 crore in a single trading session
days before Diwali.
Friday's fall was second only to the 1,408-point drop
witnessed on January 21 this year and pulled the Sensex down
to its lowest in three years at 8701.07 points.
The three-day losing streak that saw Sensex dropping by
1,982 points could not be halted by the pep talk by Finance
Minister P. Chidambaram, whose advise against panic sales was
not heeded by investors. R.B.I.'s credit policy that left key
rates untouched failed to elicit response from the banks that
they would cut lending rates, adding to the negative
sentiments.
The pressure on the domestic bourses was accentuated by
the selling saga in the global markets, particularly east Asia
early Friday morning, amid reports that both Britain and U.S.
were heading towards recession.
The fall was most stark in the case of Unitech that lost
more than half of its value, while realty segment as a whole
lost a quarter of its wealth in terms of market
capitalisation.
Oil & gas, banking and metal stocks were not far behind,
losing between 12 and 15 percent of their value. Besides,
P.S.U.s, auto and power segments lost more than 10 percent.
While there was not a single scrip in the 30-share Sensex
that posted gains, there was only one large cap company -
Container Corporation - that ended with gains, albeit a meagre
45 paise.
The broader 50-share Nifty of the National Stock Exchange
dived by 359.15 points or 12.20 percent to 2,584.00, on a day
marked by close to 90 percent of the stock ending in the red.
British Chancellor Alistair Darling said that U.K. was
nearing recession after official data revealed a 0.5 percent
decline in G.D.P. for the July-September quarter. The data
comes after I.M.F. suggested that U.S. economy would be in
recession between second half of 2008 and first half of 2009.
Reserve Bank of India too lowered its economic growth
projections to 7.5-8 percent for the current fiscal. Fears of
economic slowdown continued to spook the stock markets across
the globe.
U.S. Dow futures was down by 550 points on recession
fears.
South Korea's Kospi was down 10.57 percent, Nikkei by
9.60 percent, Hang Seng by 8.38 percent, Strait Times by
8.33 percent and Taiwan's weighted index by 3.19 percent.
Indices in Germany, France and London were down by 9.24
percent, 9.55 percent and 8.55 percent respectively in their
morning trading.
In India, brokers said the R.B.I. dashed investors hopes
by keeping its key rates unchanged in the mid-term review of
monetary policy.
The Reserve Bank Thursday evening said the present global
financial markets crisis seems to be spreading across markets,
institutions and countries, reflecting a problem of contagion,
raising hopes of fresh monetary measures in its Friday's
review to support the depressed capital markets.
Earlier, the central bank had slashed the Cash Reserve
Ratio, the percentage of amount banks are required to park
with it, by 2.5 percent to infuse Rs 1,00,000 crore liquidity
in the banking system on October 11 and reduced repo rate, the
rate at which it lends short-term funds to banks, by one
percent to 8 percent on October 20 in a bid to overcome any
adverse impact of global crisis.
India's largest private sector company Reliance Ind lost
16.44 percent. The company showed one of its lowest quarterly
net profits.
Among the 30-Sensex shares, realty major DLF was the
biggest loser with a fall of 23.96 percent.
Other key losers were Ranbaxy Lab (17.83 percent), Tata
Motors (16.54 percent), Reliance Comm (15.93 percent), ICICI
Bank (15.20 percent), ONGC (15.01 percent), Sterlite (14.94
percent), Reliance Infra (14.88 percent), Tata Steel (14.46
percent), Wipro (13.63 percent), Bharti Airtel (13.18
percent), SBI (12.68 percent) and HDFC (10.51 percent).
The market breadth was extremely negative. 2,322 stocks
registered sharp losses while 260 others closed with gains on
the B.S.E.
The trading volume was slightly higher at 4,284.64 crore
compared to Rs 3,754.82 crore on Thursday. RIL remained the
most active scrip with highest turnover of Rs 381.26 crore
followed by Reliance Capital (Rs 241.27 crore), SBI (235.77
crore), ICICI Bank (Rs 164.46 crore) and Suzlon Energy (Rs
139.94 crore).
Reflecting heavy losses in realty stocks, the B.S.E.
Realty Index plunged by 24.39 percent. The B.S.E. Oil&Gas
Index dipped by 14.97 percent, the Bankex by 12.62 percent and
the B.S.E. Metal Index by 12.07 percent. PTI JCG
DEP
bloodbath, when the benchmark Sensex lost nearly 1,100 points
and investors Rs 300,000 crore in a single trading session
days before Diwali.
Friday's fall was second only to the 1,408-point drop
witnessed on January 21 this year and pulled the Sensex down
to its lowest in three years at 8701.07 points.
The three-day losing streak that saw Sensex dropping by
1,982 points could not be halted by the pep talk by Finance
Minister P. Chidambaram, whose advise against panic sales was
not heeded by investors. R.B.I.'s credit policy that left key
rates untouched failed to elicit response from the banks that
they would cut lending rates, adding to the negative
sentiments.
The pressure on the domestic bourses was accentuated by
the selling saga in the global markets, particularly east Asia
early Friday morning, amid reports that both Britain and U.S.
were heading towards recession.
The fall was most stark in the case of Unitech that lost
more than half of its value, while realty segment as a whole
lost a quarter of its wealth in terms of market
capitalisation.
Oil & gas, banking and metal stocks were not far behind,
losing between 12 and 15 percent of their value. Besides,
P.S.U.s, auto and power segments lost more than 10 percent.
While there was not a single scrip in the 30-share Sensex
that posted gains, there was only one large cap company -
Container Corporation - that ended with gains, albeit a meagre
45 paise.
The broader 50-share Nifty of the National Stock Exchange
dived by 359.15 points or 12.20 percent to 2,584.00, on a day
marked by close to 90 percent of the stock ending in the red.
British Chancellor Alistair Darling said that U.K. was
nearing recession after official data revealed a 0.5 percent
decline in G.D.P. for the July-September quarter. The data
comes after I.M.F. suggested that U.S. economy would be in
recession between second half of 2008 and first half of 2009.
Reserve Bank of India too lowered its economic growth
projections to 7.5-8 percent for the current fiscal. Fears of
economic slowdown continued to spook the stock markets across
the globe.
U.S. Dow futures was down by 550 points on recession
fears.
South Korea's Kospi was down 10.57 percent, Nikkei by
9.60 percent, Hang Seng by 8.38 percent, Strait Times by
8.33 percent and Taiwan's weighted index by 3.19 percent.
Indices in Germany, France and London were down by 9.24
percent, 9.55 percent and 8.55 percent respectively in their
morning trading.
In India, brokers said the R.B.I. dashed investors hopes
by keeping its key rates unchanged in the mid-term review of
monetary policy.
The Reserve Bank Thursday evening said the present global
financial markets crisis seems to be spreading across markets,
institutions and countries, reflecting a problem of contagion,
raising hopes of fresh monetary measures in its Friday's
review to support the depressed capital markets.
Earlier, the central bank had slashed the Cash Reserve
Ratio, the percentage of amount banks are required to park
with it, by 2.5 percent to infuse Rs 1,00,000 crore liquidity
in the banking system on October 11 and reduced repo rate, the
rate at which it lends short-term funds to banks, by one
percent to 8 percent on October 20 in a bid to overcome any
adverse impact of global crisis.
India's largest private sector company Reliance Ind lost
16.44 percent. The company showed one of its lowest quarterly
net profits.
Among the 30-Sensex shares, realty major DLF was the
biggest loser with a fall of 23.96 percent.
Other key losers were Ranbaxy Lab (17.83 percent), Tata
Motors (16.54 percent), Reliance Comm (15.93 percent), ICICI
Bank (15.20 percent), ONGC (15.01 percent), Sterlite (14.94
percent), Reliance Infra (14.88 percent), Tata Steel (14.46
percent), Wipro (13.63 percent), Bharti Airtel (13.18
percent), SBI (12.68 percent) and HDFC (10.51 percent).
The market breadth was extremely negative. 2,322 stocks
registered sharp losses while 260 others closed with gains on
the B.S.E.
The trading volume was slightly higher at 4,284.64 crore
compared to Rs 3,754.82 crore on Thursday. RIL remained the
most active scrip with highest turnover of Rs 381.26 crore
followed by Reliance Capital (Rs 241.27 crore), SBI (235.77
crore), ICICI Bank (Rs 164.46 crore) and Suzlon Energy (Rs
139.94 crore).
Reflecting heavy losses in realty stocks, the B.S.E.
Realty Index plunged by 24.39 percent. The B.S.E. Oil&Gas
Index dipped by 14.97 percent, the Bankex by 12.62 percent and
the B.S.E. Metal Index by 12.07 percent. PTI JCG
DEP
