Markets end in red on US bailout plan uncertainty (Lead)September 26th, 2008 - 7:15 pm ICT by IANS
Mumbai, Sep 26(IANS) Indian equities markets opened weak and continued to slide to end deep in the red following news that the $700 billion US bailout plan is still to be cleared and the US troubles are far from over, analysts said.There was news Friday that a crucial meeting between US presidential candidates Barak Obama of the Democratic Party and John McCain of the Republican Party has been postponed.
This together with the news of the buy-out of Washington Mutual, the largest US thrift fund, to JP Morgan Chase indicates that there could be more bad news over the weekend, analysts said.
“Consequently, traders went into sell mode to avoid taking any positions before there was more clarity about the situation,” said security analyst Jagannadham Thunuguntla.
He is the head of the capital markets arm of India’s fourth largest share brokerage firm, the Delhi-based SMC Group.
The 30-share benchmark sensitive index (Sensex) of the Bombay Stock Exchange (BSE) closed at 13,102.18, down 445.00 points or 3.28 percent against its previous close Thursday at 13,547.18.
The broader based 50-share S&P Nifty index of the National Stock Exchange (NSE) finished at 3,985.25, down 125.3 points, or 3.05 percent from its previous close Thursday at 4110.55.
The BSE mid-cap index closed at 4,940.82, down 152.23 or 2.99 percent against its previous close Thursday at 5,093.05.
The BSE small cap index ended at 5,861.78, down 188.25 points or 3.11 percent from its previous close Thursday at 6,050.03.
Only 442 scrips or 16.54 percent advanced while 2,172 or 81.26 percent declined and 59 remained unchanged.
Realty, metal, bank and capital goods stocks were the major losers. Only fast moving capital goods gained.
ITC, Hindustan Unilever and ACC were the only gainers among the Sensex component stocks.
Ranbaxy Laboratories, Sterlite Industries, ICICI Bank and Grasim Industries were the major losers.
The sentiment was negative throughout, analysts said.