The Hindu Business Line : Only 4 sectoral indices post positive return in one-year

Chennai, July 1 The continuous selling pressure has inflicted heavy damage to the indices both, benchmarks and sectoral. Except for the four sectoral indices — BSE Healthcare, Oil & Gas, Metal and FMCG —others have posted negative return during the one-year period starting June 29, 2007.

Today’s heavy sell-off sent the BSE Sensex below the 13,000-level for the first time since April 5, 2007 and the NSE’s S&P CNX Nifty below 4,000-mark that it had last touched on April 19, 2007.

According to market men, sentiment was battered on a combination of negative factors such as high inflation, raising interest rates and crude prices. Besides, political uncertainty over the Indo-US nuclear deal, added further pressure.

“This has affected interest-rate sensitive sectors such as banking, realty, auto and consumer durable heavily,” said a Chennai-based broker, who is working for a listed entity.

None of the indices have shown positive return since January 1, 2008. The worst affected among them are BSE Realty, Bankex, and BSE-Metal.

Seven sectoral indices — BSE Power, Consumer Durables, Auto, Bankex, Realty, BSE-PSU and BSE Capital Goods — have registered 52-week lows on Tuesday.

According to a Mumbai-based brokerage, it is a matter of time for the four indices, which are in the green in year-to-date period, to turn into negative zone. This is because the market is clouded by extreme pessimism.

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