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SENSEX DOWN TREND CONTINUES

Submitted by TheIndiaStreet on July 6, 2008 - 10:53am.
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By: BHARAT RATNA 

  • Sensex down by 620 points under the Bears tightened grip due to political uncertainty at home and soaring global crude prices continued to cast a shadow on bourses

  • The Bombay Stock Exchange ended the week at 13-month low of 13,802.22, a loss of 769.07 points or 5.28 per cent from its last weekend's close.

  • The 50-share S&P CNX Nifty of the National Stock Exchange tumbled by 210.90 points or 4.85 per cent to close the week at 4,136.65 from its previous weekend's close.

  • Market analysts are thinking that the statement from Finance Ministry that double digit inflation would linger on for some more time heavily impacted investor sentiment.

Sky-high inflation at 11.42% which is very highest in 13 years as of now and fears of cascading impact of the oil prices, which hit at an all-time high, created panic among investors on Friday.


The Indian equities market continued its downtrend this week on the back of soaring crude oil prices and high inflation, which weighed heavily on investors' sentiment.


The 30-share index of the Bombay Stock Exchange ended the week at 13-month low of 13,802.22, a loss of 769.07 points or 5.28 per cent from its last weekend's close.

 

The 50-share S&P CNX Nifty of the National Stock Exchange tumbled by 210.90 points or 4.85 per cent to close the week at 4,136.65 from its previous weekend's close.

 

On Thrusday, the markets had recovered by more than 300 points on June 25 and 26 largely because of short covering by domestic players and Foreign Institutional Investors (FIIs) due to expiry of derivatives series.

 

The market was flooded with negative factors including a fresh surge in global crude oil prices, which hit a historic high of USD 142.26 a barrel in New York on 27th June amid a prediction by the OPEC's president that oil prices could reach USD 170 level owing to weak dollar and geopolitical unrest.

 


Indications from Finance Ministry that the double digit inflation will linger on for some more time even if prices stabilize also, had a considerable impact on the market.


All the indices, including the sectorial and dollex, ended the week with sharp losses.


Foreign Institutional Investors (FIIs) also pulled out more than Rs 900 crore in the initial four days of the week. Their total outflows stood at over 25,500 crore so far in the current calendar year.

 

The Bankex down by 10 per cent as bank stocks showed huge falls. The BSE Realty index was down about 9.5 per cent, BSE Auto index 8.7 per cent, PSU index 8.6 per cent, Metal index 8.5 per cent, Capital Goods index 8.4 per cent and Power index 8.0 per cent.

 

 The broad-based BSE-100 Index tumbled by 487.40 points or 6.32 per cent to close the week at 7,228.84 from its last weekend's close of 7,716.24.

 

The BSE-200 Index and the Dollex 200 were quoted lower at 1,691.44 and 657.73 at the weekend compared to their last weekend's close of 1,809.24 and 701.00 respectively.

 

The BSE-500 Index plunged by 380.43 points or 6.62 per cent to finish the week at 5,367.19 from preceding weekend's close of 5,747.62 and the Dollex-30 ended sharply lower at 2,646.62 from 2,784.04 at the last weekend.

 

On the NSE, the S&P CNX Defty fell sharply by 159.15 points or 4.54 per cent to end the week at 3,346.60 from its last weekend's close of 3,505.75 and the CNX Nifty Junior concluded the week at 6,488.15, a fall of 617.80 points or 8.69 per cent from 7,105.95 at the last weekend.


Analysts are telling that almost all the shares are available below the 13 month low prices.

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