Interest rate hike fears spook Sensex, closes 544 points down (Roundup)
January 7th, 2011 - 7:59 pm ICT by IANS
Mumbai, Jan 7 (IANS) It was a disappointing day for the Indian stock markets with traders resorting to wide-spread selling, booking profits in a big way, which resulted in key indices ending in the red during the first week of the new trading year.A sort of panic spread through the markets, which started with interest rate-sensitive stocks correcting, as the notion that the Reserve Bank of India was going to hike rates to curb inflation strengthened.
The 30-share sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 20,163.85 points, closed at 19,691.81 points, down 492.93 points or 2.44 percent from its previous close at 20,184.74 points.
At the National Stock Exchange (NSE), the 50-share S&P CNX Nifty was trading at 5,904.6 points, down 2.38 percent or 143.65 points.
Broader markets were also in the red, with the BSE midcap index closing 2.49 percent lower and the BSE smallcap index ending 2.86 percent down.
The selling spread throughout the market breadth with all the 13 sectoral indices on the BSE closing in the negative.
Metals, auto and consumer durable stocks were among the biggest losers.
The market breadth was negative, with 620 stocks advancing, compared to 2,330 scrips on the decline, while 97 stocks were unchanged.
All the 30 stocks on the Sensex ended in the red.
Top losers included Hindalco Industries, down 7.02 percent at Rs.233.15; Tata Motors, down 5.52 percent at Rs.1,189.50; Bharti Airtel, down 4.12 percent at Rs.338.70; and M&M, down 4.07 percent at Rs.738.60.
According to data available with SEBI, foreign institutional investors sold scrips worth $47.18 million Friday.
Other major bourses in Asia were mixed, though trader sentiments improved after release of strong US non-farm pay roll data.
The Japanese Nikkei index closed 0.11 percent up at 10,541.04 points, while the Chinese Shanghai Composite index moved 0.52 percent up at 2,838.8 points.
Hong Kong’s Hang Seng was sluggish, closing 0.12 percent up at 23,786.3 points.
European bourses were weighed down by weakness in the energy sector as commodity prices slipped from recent highs.
Around mid-day, the German DAX was ruling flat at 6,979.73 points, while the French CAC 40 was trading 0.46 percent down at 3,886.64 points.
The UK’s FTSE was ruling 0.44 percent lower at 5,993.3 points.
- Interest rate hike fears push Sensex down 492 points (Intro Roundup, supersedes Roundup) - Jan 07, 2011
- Sensex slips 136 points, consumer durables, banking stocks lose (Lead) - Mar 28, 2012
- Sensex closes 309 points lower on grim global cues (Roundup) - Jul 12, 2011
- Sensex languishes in afternoon trade - Mar 29, 2012
- Sensex in red, realty, banking under selling - Mar 26, 2012
- Sensex closes 276 points lower weighed by TCS, negative cues - Oct 18, 2011
- Sensex closes 156 points lower ahead of monetary policy review (Roundup) - Apr 29, 2011
- Sensex hits six-week low on European debt woes - Nov 17, 2011
- Sensex slips 164 points to close at a three-month low (Roundup) - May 25, 2011
- Sensex gives up gains, traders book profits - Oct 11, 2011
- Sensex closes 285 points higher despite dull global cues (Roundup) - Mar 21, 2012
- Sensex closes 133 points lower, RIL weighs heavy (Roundup) - Jun 17, 2011
- Sensex closes 204 points down amid negative global cues (Roundup) - Aug 02, 2011
- Sensex closes 66 points lower on lacklustre trading day (Roundup) - Jul 21, 2011
- Sensex closes 188 points lower on global sell-off - Sep 19, 2011
Tags: bharti airtel, biggest losers, bombay stock exchange, disappointing day, foreign institutional investors, hike fears, indian stock markets, interest rate hike, major bourses, market breadth, national stock exchange, nikkei index, reserve bank of india, sectoral indices, sensitive index, sensitive stocks, shanghai composite index, smallcap index, tata motors, top losers