Wednesday, October 15, 2008

Market Plunges On Global Recession Fears - Oct 15, 2008

The market sentiment continues to be negative on a concern of global recession and lack of liquidity which is expected to plunk the Indian economy and corporate earnings. Investors were nervous on account of Asian shares slipped after a two days rally and fear on US economy. Further, investors remained cautious since early hours trade and booking their profits due to threatening growth of emerging markets.

Besides, finance minister Mr. P.Chidambaram has informed that interbank lending still remained constrained, and the government and RBI had mutually agreed on measures to address the problem. On a sectoral front, Capital Goods, Metals, IT and Bankex are the worst sufferers in the carnage on the BSE as these indices are trading down by nearly 8%, 6%, 5% and 3% respectively. Market breadth is negative as 445 stocks are trading in positive while nearly 1940 stocks are in negative.

At 1.30PM, the BSE Sensex is trading lower by 582 points at 10901.22 and NSE Nifty is down by 163 points at 3355.6.

The BSE Mid Cap is trading plunged by 157 points at 3734.64 and Small cap is trading lower by 192 points at 4423.76.

Losers from the BSE are Reliance Infra down by (13.48%) at Rs547 along with REL Communication by (11.63%) at Rs237.45, L&T by (10.33%) at Rs900, Jaiprakash Associate by (9.65%) at Rs76.80, Sterlite industries (8.65%) at Rs296.90, Tata Steel by (7.97%) at Rs280.50 and ICICI bank by (7.52%) at Rs413.50.

The BSE Capital Goods index is trading down by 732.06 points at 8144.14. Major Losers are Crompton Greaves by (14.08%) at Rs188.50 followed by Punj Lloyd by (13.58%) at Rs185.50, L&T by (10.26%) at Rs900.7, Thermax by (8.75%) at Rs311.25 and BEML by (8.69%) at Rs480.

The BSE Metal index is crashed by 418.51 points at 6433.20. Scrips trading lower are JSW SL by (10.45%) at Rs281.50, followed by Jindal steel by (9.56%) at Rs786, Sterlite industries by (8.65%) at Rs296.90, , Tata Steel by (7.97%) at Rs280.50, Welspun Gujarat by (7.28%) at Rs136.25 and Ispat industries by (5.78%) at Rs13.85.

The BSE IT index is trading lower by 139.69 points at 2800.18. Scrips trading lower are Aptech Ltd by (13.52%) at Rs91.45 followed by Moser Baer by (12.69%) at Rs108.70, Tech Mahindra (10.45%) at Rs389.75, NIIT Ltd by (6.33%) at Rs31.10 and Oracle Fin by (6.30%) at Rs501.

During the dip cut session, Tata Steel is trading lower (7.97%) at Rs280.50 on account of expectation on fall in demand for industrial metals, which is expected to shrink in near future. Further the metal price is expected to hit a bottom before the end of 2009, while major players are planning to cut the output over the next year. On the other hand, the fall in metal stocks followed by continuous decline in commodity prices in LME. Additionally, Hot-rolled steel prices have dipped globally to USD 750 per tone from USD 900 around six weeks before.

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