Business Daily from THE HINDU group of publications
Tuesday, Dec 12, 2006
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Business Daily from THE HINDU group of publications Tuesday, Dec 12, 2006 ePaper |
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Stock Markets Markets - Commentary Columns - Sensor Alagappan Arunachalam
Pointers Advances-declines ratio at 1:3 Wealth worth Rs 1 lakh crore wiped off Turnover on the BSE higher by 19 per cent
The cash reserve ratio hike by the RBI and the subsequent deposit rate hike by the country's largest banker SBI appears to have caused the blood bath in the market. The initial pessimism, which prevailed in the banking sector, spread like wild fury to envelope the market. The Sensex, which opened on a flat note, gave way to the bears, nosediving into the red to touch an intra-day low of 13,262 points. Later, the bellwether index closed with a 400-point drop to register its largest absolute decline since June 8. The advances-declines ratio was lopsided in favour of the losers at about 1:3. Small cap stocks were battered with the BSE Small Cap shedding 3 per cent. Among the sector-oriented indices, the banking and metal indices dropped sharply.
Buzzing Stocks
Quite a few stocks managed to buck the bear onslaught raking in commendable gains. Prominent among them was Atlanta, which continued to maintain its gaining streak for the 28th straight day. The stock has more than tripled since the beginning of November. Federal-Mogul Goetze, Educomp Solutions, Adani Enterprises and Patel Engineering attracted significant buying activity.
Sector Watch
Across the board selling could be gauged in the banking sector with only UCO Bank bucking the trend to close flat. The BSE Bankex, on the back of sharp dips in frontline stocks, tumbled, losing about 7 per cent to close below 7,000 points for the first time since November 20. While PSU banks took a large part of the beating, quite a few second-rung private sector banks also shed significant value. IndusInd Bank and Lakshmi Vilas Bank dropped by more than 11 per cent and 10 per cent. Sharp losers in the public sector space included Canara Bank, Corporation Bank, Punjab National Bank, Vijaya Bank and State Bank of Mysore. Eroding last week's gains, the metals index on the BSE shed 4.7 per cent to close at 8,615 points. Tata Steel dropped significantly on information that CSN had outbid the company for European steel maker Corus. Other top losers in the steel space included the Jindal Stainless, Jindal SAW, Jindal Steel and Maharashtra Seamless. Sterlite Industries, National Aluminum, Hindalco and Hindustan Zinc topped the losers' list in the non-ferrous space . Across the board selling could be gauged in the agrochemicals and fertiliser industries. Bayer Crop Science, Excel Crop Care and Rallis shed more than four per cent each. Fertiliser stocks were also caught in the mayhem with frontline stocks in this sector closing lower. Rashtriya Chemicals and Fertilisers, Gujarat State Fertilisers & Chemicals and Chambal Fertilisers lost more than 2 per cent. Plantation stocks were also caught in the melee with McLeod Russel, Assam Company, Goodricke and Bombay Burmah shedding significant value.
Other Gainers/Losers
Among the Junior Nifty constituents Polaris, Bharat Electronics, Asian Paints and Lupin were the only ones to close in the green. Banking stocks dominated the losers' list with Bank of India, Bank of Baroda, Syndicate Bank, IOB, Andhra Bank and Union Bank losing more than 6 per cent each.
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