Thaindian News

Mumbai, May 7 (IANS) A benchmark index for Indian equities closed 1.3 percent lower Friday at 16,769.11 points, dragged down by investor worries over the sovereign debt crisis in the Euro zone threatening the world economic recovery.
In what was a volatile but eventful trading day, the 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 16,939.58 points, shut shop at 16,769.11 points — 218.42 points or 1.29 percent lower than its previous close at 16,987.5 points.

At the National Stock Exchange (NSE), the broader 50-share S&P CNX Nifty closed at 5,018.05 points, a loss of 1.43 percent or 72.8 points from its previous close at 5,090.85 points.

Broader markets saw a greater sell-off with the BSE midcap index ending 2.54 percent down and the BSE smallcap index closing 3.01 percent lower.

Selling was rampant across sectors. Realty, banking, and oil and gas scrips were among the worst hit.

The day’s highlight was the apex court verdict on the Reliance Industries-Reliance Natural Resources case on the pricing of gas from the Krishna-Godavari basin.

The Supreme Court in its order asked brothers Mukesh and Anil Ambani to re-negotiate the terms of the agreement of gas supply within six weeks.

The market reacted sharply to the verdict. At the Bombay Stock Exchange, Mukesh Ambani promoted Reliance Industries rose 4.8 percent to Rs.1,060. It closed the day at Rs.1,033.85, up 2.27 percent.

In contrast, the Reliance Natural Resources scrip faced tremendous selling pressure. It closed 22.82 percent down at Rs.52.75. The other R-ADAG (Anil Ambani Dhirubai Ambani group) company, Reliance Power, lost 8.8 percent to end the day at Rs.140.35.

In an otherwise gloomy day, the gains in RIL stock helped the Sensex recover in some measure but it could not sustain the selling pressure that has been building up during the week due to the Euro zone debt crisis. RIL has the highest weight on the sensex.

There were only four gainers on the 30-scrip Sensex: RIL, up 2.27 percent at Rs.1,033.85; Hindustan Unilever, up 0.99 percent at Rs.234.70; M&M, up 0.76 percent at Rs.523.30; and ONGC, up 0.23 percent at Rs.1,045.25.

Major losers included Reliance Infra, down 7.01 percent at Rs.979.70; Tata Motors, down 6.4 percent at Rs.762.50; DLF, down 4.41 percent at Rs.285.05; and SBI, down 3.61 percent at Rs.2,226.35.

Global bourses have been in a tizzy ever the Greek debt crisis surfaced.

In Asia, Hong Kong’s Hang Seng closed 1.06 percent lower at 19,920.29 points, while the Chinese Shanghai Composite index ended 1.87 percent down at 2,688.38 points.

The Japanese Nikkei shut shop 3.1 percent down at 10,364.59 points. The South Korean Kospi too was down 2.21 percent at 1,647.50 points.

European stocks also opened weak.

The FTSE 100, the benchmark index of the London Stock Exchange, was at 5,244.12 points, down 0.32 percent, while its German peer, DAX, ended 0.64 percent lower at 5,870.41 points.

The French CAC 40 index also closed 0.96 percent down at 3,522.14 points.