Thursday, November 20, 2008

Market Extending Losses Sensex Below 8,500 Mark - Nov 20, 2008

Continuing foreign fund outflows, worries of a deep global recession and shoring up resources to beat the global liquidity crunch by emerging markets, slowdown in domestic market are the factors which is pulling the domestic bourses down. Further, due to government’s excess interference, the visibility of corporate crisis is hidden. As a result the clear scenario of different corporate is not coming into the market. This is leading to hesitation, roomers and confidence crisis into the minds of the investors.

On the sectoral front, traders off-loaded positions in all of the sectors. Metal stocks declined on profit booking and worries that global economic slowdown might hit demand. This offset imposition of 5% import duty on steel by the government on November 18, 2008 to protect the domestic industry. Auto stocks fell on declining domestic demand due to high interest rates, liquidity crisis and higher fuel prices along with production cut by major players as this will put pressure on margins.

Further, IT stocks extended losses after Federal Reserve, in US, slashed its growth forecast for the economy. Banking stocks fell on worries of rising defaulter list in a weakening economy and a weak in American Depository Receipts (ADRs). Real estate stocks extended losses after the Confederation of Real Estate Developers’ Association of India (Credai) appealed to its 3,500-plus members to reduce residential prices, a day after the finance minister nudged the industry to do so.

The Market breadth, indicating the overall strength of the market, was weak. On BSE, out of 2383 shares traded so far, 445 shares advanced while 1878 shares declined. Nearly 60 shares are unchanged.

At 1.20PM, the BSE Sensex is trading lower by 404.86 points at 8368.92 and NSE Nifty is down by 105.8 points at 2529.2.

The BSE Mid Cap is trading lower by 119.2 points at 2879.19 and Small cap is trading down by 122.96 points at 3370.16.

Lowers from the BSE Sensex Pack are Tata Power down by (8.37%) at Rs.620.50 along with ICICI Bank down by (8.40%) at Rs.318.50, Rel Com Ltd down by (7.95%) at Rs.183.00, Housing Development Finance Co by (7.38%) at Rs.1,265.30, HDFC Bank by (6.96%) at Rs.825.25 and DLF by (6.15%) at Rs.210.60.

The BSE Realty index is trading with deep cut of 122.81 points (6.71%) at 1,708.13. Pulling it are HDIL trading lower by 10.25% at Rs88.45 along with Orbitco by 9.16% at Rs53.55, Indiabull Real by 8.78% at Rs92.95, Ansal Infra by 8.41% at Rs31.60, Phoenix Mill by 8.05% at Rs56, Unitech by 6.67% at Rs36.40, DLF by (6.15%) at Rs.210.60 and Anant Raj by 5.39% at Rs43, Parsvnath by 5.19% at Rs35.65.

The BSE Bankex index is down by 216.29 points at 4,380.66. Stocks trading lower are ICICI Bank down by (8.40%) at Rs.318.50 along with HDFC Bank by (6.96%) at Rs.825.25, Yes Bank by (6.66%) at Rs.61.00 and Indian Overs by (6.26%) at Rs.62.85.

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