Financial Daily from THE HINDU group of publications
Wednesday, Nov 23, 2005
Financial Daily from THE HINDU group of publications Wednesday, Nov 23, 2005 |
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Stock Markets Markets - Stock Markets Government - Politics Sensex slumps 75 pts on Bihar poll results Our Bureau
Mumbai , Nov. 22 STOCK prices fell for the second day in a row taking the BSE Sensex down by 75 points on Tuesday on political concerns following the defeat of Rashtriya Janata Dal (RJD), an ally of United Progressive Alliance. Unwinding of positions ahead of the expiry of derivatives contracts on Thursday also fuelled the downturn. The RJD, headed by Mr Lalu Prasad, lost the Assembly elections in Bihar after a 15-year rule. There was lot of volatility in trading as the results of Bihar elections moved the market. The BSE Sensex was down by 75.77 points (0.88 per cent) to close at 8534.97. NSE's S&P CNX Nifty was down 29.65 points (1.1 per cent) to 2,572.85. With Tuesday's fall, the BSE Sensex is down by 150 points in the last two trading sessions. Brokers said there was confusion over the direction of the market. "There were mixed views in the market leading to volatility in stock prices," said a dealer with a domestic broking firm. He said the expiry of derivatives contract on Thursday lead to unwinding of positions fuelling a drop in stock prices. There was selling in several of the index heavy weights. Among the major losers were Tata Steel, Ranbaxy, SBI, ICICI Bank and others. But steel stocks were the worst affected among the sector stocks. This was due to China's leading steel company Baoshan Iron and Steel Company announcing a cut in steel prices from the next quarter. The announcement of capital reduction by Ispat Industries due to restructuring led to a fall in its stock price. The overall breadth of the market was also negative with 1,602 stocks declining and 873 stocks gaining. Some buying was noticed in select mid-cap and small-cap stocks.
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