Financial Daily from THE HINDU group of publications
Friday, Jul 08, 2005
Financial Daily from THE HINDU group of publications Friday, Jul 08, 2005 |
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Markets
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Commentary Columns - Sensor Market turns jittery Radhika Kamath
WEAKNESS in global markets, rising crude oil prices and a series of explosions in London caused jitters in Indian markets as they recorded a biggest drop in more than two months. While the benchmark Sensex crashed by 142.5 points, the 50-stock Nifty lost 48.8 points. On Thursday, the markets opened on a weak note and witnessed a highly volatile session. The announcement by the Government that it may ask private oil companies to bear a part of the subsidy burden set a downward trend. Reliance recorded a biggest drop of 4.8 per cent followed by other oil majors. ONGC, Reliance Energy, GAIL, HPCL, BPCL and IOC shed considerable value. The undertone in the market was highly bearish. Four out of the thirty stocks constituting the Sensex registered a sharp decline. Rising crude oil prices, which crossed $61 a barrel along with weakness in global markets, compounded the bearish sentiment. There was across-the-board selling which dragged the indices into the negative territory. The fall was steeper in the last hour of trading as investors booked profits amid concern of global terrorism, following news reports of explosion in London. Most of the index heavyweights took a severe beating. Maruti, NTPC, ICICI Bank, Satyam, Ranbaxy, Dr Reddy's, Tata Motors, Infosys, HLL, Wipro, Hindalco, BEML suffered sharp losses. Mid-cap and small-cap stocks also could not withstand the bear attack. Monsanto, Novartis, I-gates, Polaris, Videocon International, IndusInd Bank, Ramco Systems declined considerably. Most of the consumer durables stock, which had a field day on Wednesday, failed to sustain the gains. Videocon International was a significant loser. The stock was down by 5.9 per cent after the company announced the swap ratio of 1:5 in its proposed merger with Videocon Industries. BPL, Su-raj Diamonds and Whirlpool also ended in the red. While the frontline IT stocks suffered sharp losses, most of the second-rung stocks in this space succumbed to the selling pressure. Sonata Software, I-flex, Rolta India and MphasiS BFL remained subdued. FMCG stocks also stayed out of favour. McDowell, Jindal Photo, Henkel Spic, Ruchi Soya, Shaw Wallace, HLL, Colgate Palmolive, Nirma, Dabur India and Nestle led the losers' pack. However, Britannia and ITC managed to record marginal gains. Metal stocks that were in limelight on Wednesday saw a mixed response. Sesa Goa, Tata Steel, Vesuvius India, Monnet Ispat and Navbharat Ferro Alloys ruled firm. However, Hindalco, National Aluminium and Hindustan Zinc witnessed profit booking.
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