Bears finally prevail, key index down 300 points (Roundup)

November 12th, 2008 - 7:35 pm ICT by IANS  

SensexMumbai, Nov 12 (IANS) With the Indian index for industrial production (IIP) growing 4.8 percent in September compared to a rise of only 1.3 percent in the previous month, analysts said Indian equities tried to bounce back Wednesday but bears still prevailed and a key index shed more than 300 points.“The better industrial production figures brought some cheers but we are now global citizens and the global situation is still causing jitters,” said Jagannadham Thunuguntla, head of the capital markets arm of India’s fourth largest share brokerage firm, the Delhi-based SMC Group.

Thunuguntla was trying to explain the ultimate shedding of values despite repeated attempts by bulls Wednesday to push up equities into positive territory.

The 30-share benchmark sensitive index (Sensex) of the Bombay Stock Exchange (BSE) ended at 9,536.33, down 303.36 points or 3.08 percent from its previous close Tuesday at 9,839.69 points.

The Sensex opened weak at 9,683.75, down 155.94 points or 1.58 percent and within minutes hit a low of 9,559.33 but recovered thrice to hit an intra-day high of 9,928.60 points only to be pulled down each time to finally reach its closing value.

The broader-based 50 share S&P CNX Nifty of the National Stock Exchange (NSE) also showed a similar trend and finished at 2912.55, down 26.1 points or 0.89 percent from its previous close Tuesday at 2938.65 points.

The BSE midcap index finished at 3,281.27, down 75.43 points or 2.25 percent from its previous close at 3,356.70 points.

The BSE smallcap index ended at 3,813.38, down 74.63 points or 1.92 percent from its previous close at 3,888.01 points.

All 13 sectoral indices finished in the red with realty, bank, metal and capital goods posting the biggest losses.

Of the 30 scrips that make up the Sensex only two - Tata Consultancy Services and Infosys Technologies - ended with gains of 1.04 and 0.29 percent respectively.

The biggest losers were Jaiprakash Associates, down 9.13 percent followed by DLF Ltd., down 8.61 percent, ICICI Bank, down 8.35 percent and Reliance Infrastructure, down 6.53 percent.

As many as 1,701 stocks or 65.55 percent declined, 818 stocks or 31.52 percent advanced and 76 stocks or 2.93 percent remained unchanged.

Overnight US markets had closed in the red and Asian markets Thursday morning was also in negative territory.

The key index of the New York Stock Exchange Tuesday closed 2.89 percent down and the Nasdaq index finished 2.22 percent down.

Nikkei, the key index of the Tokyo Stock Exchange was down 1.49 percent Wednesday morning while Hang Seng, the key index of the Hong Kong Stock Exchange, was ruling 1.95 percent down.

Consequently, Indian markets had opened weak on these global cues but the IIP numbers brought some cheer and some genuine buying combined with some short covering saw the Sensex repeatedly trying to get into positive territory.

“With news about General Motors’ bankruptcy likely to break this week, there is still great nervousness in the market,” Thunuguntla said.

“Hence, although markets may bounce back tomorrow on short covering after the Sensex has shed nearly 1,000 points Tuesday and Wednesday creating profit opportunities, any sustained bull run is highly unlikely,” Thunuguntla said.

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