Markets fall second day in a row (Roundup)December 23rd, 2008 - 6:40 pm ICT by IANS
Mumbai, Dec 23 (IANS) Indian equities fell the second consecutive day Tuesday as a key index closed 2.43 percent amid continued selling by investors.The sensitive index (Sensex) of the Bombay Stock Exchange (BSE) closed at 9,686.75 points, a fall of 241.6 points or 2.43 percent from its previous close Monday of 9,928.35 points.
“Profit booking will keep happening intermittently as investors are not sure how long the Indian equities markets will continue to show positive trends. Having said that, it is difficult to say whether the market will continue a particular trend, bullish or bearish,” said Jagannadham Thunuguntla, head of the capital markets arm and director of India’s fourth largest share brokerage firm, the Delhi-based SMC Group.
S&P CNX Nifty of the National Stock Exchange (NSE) was also going through a slump, trading at 2,968.65 points 2.32 percent lower than its previous close.
Broader market indices also fell with the midcap index going down 2.58 percent from Monday’s close, while the smallcap index fell similarly, closing about 2.56 percent compared to its previous close.
There was hardly anything to choose from sectors or companies with losers far outnumbering gainers.
All 13 of the sectoral indices in the Sensex fell with consumer durables being the worst hit and settling at 5.81 percent lower than its previous close.
Among top losers Tuesday were Satyam Computers, which registered a fall of 13.98 percent and closed at Rs.162.40. Other losers were Jaiprakash Associates (down 11.67 percent to close at Rs.87.40) and Tata Motors (down 7.04 percent to close at Rs.188.10).
Reliance Communications was among the very few performers in the Sensex Tuesday and closed 1.24 percent up at Rs.213.50.
Asian markets were sluggish with the Hang Seng, a key index of the Hong Kong Stock Exchange, falling 2.75 percent. The slump was largely attributed to China cutting interest rates by less than what was expected and auto major Toyota Motors forecasting a loss.
Overnight US markets closed Monday in the red with a key index of the New York Stock Exchange finishing 1.7 percent lower than Friday’s close. The Nasdaq index closed 2.04 percent lower than its previous close.
US markets may also turn more volatile as many market participants may choose to extend their Christmas holidays. US markets will close early Wednesday and will remain closed Thursday.