Sensex plunges by 696 pts on weak global cues

Mumbai, Nov 11 (PTI) In sync with other Asian markets,
B.S.E. benchmark Sensex Tuesday plunged by nearly 700 points
to close below the psychologically important 10,000 level on
selling pressure triggered by concerns over companies lowering
their production levels and over India's exports slowing down.

The Bombay Stock Exchange 30-share barometer settled the
day at 9,839.69, a steep fall of 696.47 points or 6.61
percent. The index resumed at lower levels and remained in
negative terrain throughout the day on sustained all-round
selling.

Sensex had last broken 10,000 level on November 6. With
Tuesday's loss the barometer has shed most of the 800-point
gain it recorded in the past two trading days.

The 50-share Nifty of the National Stock Exchange also
tumbled by 209.60 points, or 6.66 percent, to 2,938.65, below
the crucial 3,000 level.

Marketmen said the overnight rally in the world stocks
fizzled out Tuesday on deepening worries over the recession
which also took the shine out of the USD 586 billion Chinese
stimulus plan for its economy.

They said sentiment was also hit by a fall in India's
exports in October. Exports declined in October for the first
time in any month in five years. Exports declined by 15
percent in October over the same month last year, and barring
petroleum products, the contraction in overseas shipments
would be over 20 percent.

Reports of delay in Reliance Industries' key oil and gas
projects also dampened the trading sentiment.

Brokers said sentiment was partly affected by reports
that the key oil and gas projects of India's largest private
sector company Reliance Industries are unlikely to meet its
previously-announced commissioning schedules.

Elsewhere, a spate of bad corporate and economic news
led the Asian indices to end sharply lower. Hang Seng plunged
by 4.77 percent, Singapore ST by 4.14 percent, Nikkei by
3.00 percent, Taiwan's Weighted index by 2.15 percent, Kospi
by 2.06 percent and Shanghai Composite by 1.66 percent.

European markets also resumed sharply lower by nearly 2
percent this morning.

Besides I.T.C. Ltd, which ended in positive terrain, all
other 29 Sensex shares registered sharp loses.

Jaipra Asso topped the list at 12.21 percent, followed
by Sterlite Ind at 11.03 percent. Tata Steel was another big
loset at 10.98 percent, while Hindalco was down a hefty
10.18 percent. D.L.F. Ltd also closed lower by more than 10
percent.

Hit by a fall in advertisement revenues, media sector
shares, including that of N.D.T.V., H.T. Media, T.V. Eighteen
and Zee Ent fell shaprly.

The market breadth turned distinctly weak as 1,766
shares registered losses while only 759 ended with gains.

The trading volume remained low at Rs 3,731.03 crore.
R.I.L. remained the most active share with the highest
turnover of Rs 266.69 crore followed by Jaipra Asso (Rs 221.40
crore), R.E.L. Infra (Rs 160.10 crore), Reliance Com (Rs
154.37 crore) and Reliance Capital (Rs 130.51 crore).


All sectorial indices ended in the red with an average
fall of 1.27 percent to 10.25 percent. Realty, Metal, Power
and Capital goods segments led the downslide. PTI V.M.P.
RKM