Sensex below 11k again
Written by Writer on Friday, October 17th, 2008
Sensex below 11k again
Statesman News Service
MUMBAI, Oct 15: Weak global cues today destroyed the two-day rally at Dalal Street as both the Sensitive Index of the Bombay Stock Exchange and Nifty 50 of the National Stock Exchange lost ground speedily under resumed selling pressure by bear operators. Shadow of financially unstable banks in Europe marred the optimistic mood witnessed at Indian the bourses during the past two trading sessions.
The BSE Sensex once again closed under 11,000 points ~ at 10,809.12 ~ shedding 674.28 points or 5.87 per cent. At one point it was down 723.07 points. The Nifty 50 was down 5.12 per cent or 180.25 points closing at 3,338.40.
In the Sensex all the 30 stocks ended in deep red under relentless selling by foreign as well as domestic investors. The top losers included Jaiprakash Associates at Rs 72.70 (-14.47 per cent), RCom Rs 235.80 (-12.24 per cent), Rel Infra Rs 555.70 (-12.11 per cent) and Tata Steel Rs 273.25 (-10.35 per cent). The volume was 3.48 crore stocks traded at a turnover of Rs 1,695.25 crore. Earlier in the morning signals from Asian markets were mixed. Japan’s Nikkei 225 closed marginally up 1.06 per cent or 99.90 points at 9,547 points while Hang Seng of Hong Kong ended down 835 points or -5 per cent at 15,998.
The markets looked unsatisfied with the special repo scheme for mutual funds announced by the Reserve Bank of India yesterday. There have been no takers of Rs 20,000 repo advances at nine per cent for 14 days. To placate the MFs the central bank has withdrawn the 14 day tag and kept it open until the entire Rs 20,000 crore amount is subscribed.
The market regulator Sebi also came to the rescue of MFs by relaxing the borrowing norms for MFs. Under the current norms an MF cannot borrow more than 20 per cent of the assets under management. The Sebi has been granting selectively permission to borrow more in some cases even from their foreign collaborators. The market behaviour on Thursday will depend on more measures ~ to ease liquidity pressure ~ announced by the RBI late on Wednesday evening.
