• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• BL Club
• Smartbuy
• Books
• Gallery

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

Mumbai, Nov. 3

Domestic stocks slipped for the sixth consecutive day on Tuesday as global cues remained negative.

Opening after an extended weekend, the Sensex dived 491 points to a two-month low of 15,404.8 points, while the Nifty fell 3.14 per cent to 4,563.9 points.

The Sensex in the last six trading sessions has fallen 1404 points or 8.35 per cent.

“Many investors triggered stop/loss (an order placed to buy/sell when the markets reach a particular level) when the Nifty slipped below 4,600. There was a major sell-off”, said Mr Alex Mathew, Head of Research at Geojit BNP Paribas Financial Services.

The key European markets were down more than one per cent when they opened on Tuesday, which dragged down stocks here. Another reason for the dip was the interest rate hike by the Reserve Bank of Australia on Tuesday.

Foreign Institutional Investors were net sellers for Rs 874 crore. Since last Monday, they have been net sellers for Rs 4,720 crore. “It looks like the RBI will tighten the monetary policy ahead of other emerging market central banks. This, for the time being, has made the markets here unattractive to the FIIs. And to a certain extent, they feel the markets here are a little overvalued”, said Mr Sanjeev Patni, Head of institutional broking at Centrum Broking.

There was a lot of selling of Participatory Notes, said the head of research at a top brokerage: “It is learnt that one particular FII has been violating certain P-Notes regulation in Mauritius which might lead to a change in P-Notes regulations there. This led to selling by other FIIs holding P-Notes.”

Domestic institutions were net buyers for Rs 752 crore.

Retail investorswere net buyers too. “The market seems very attractive now. Even though I could not buy today, I did put my money in seven SIPs (Systematic Investment Plans) which start today,” Mr John D’Souza, a retail investor from Mumbai who sold his shares during the recent rally to buy himself a new car!

The market breadth was negative as 2,171 scrips declined and only 534 scrips advanced. Reliance Industries was one of biggest losers of the day — another reason for Tuesday’s massive market fall. The scrip fell 5.73 per cent ahead of the apex court hearing in the RIL-RNRL case and also as the Comptroller and Auditor General set up a panel for special audit of RIL’s capital expenditure on its Krishna-Godavari gas project. Realty stocks too fell, with the sectoral index crashing 9.7 per cent.

More Stories on : Stock Markets | Foreign Institutional Investors

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Copyright © 2009, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line