Bulls ousted; Sensex, Nifty lose 10 per cent
The 30-share sensitive index of the Bombay Stock Exchange fell 1,408.83 points or 9.45 per cent over previous Friday's close and ended trade at 13,504.22 points.business Updated: Jul 11, 2009 14:17 IST
Indian equities markets ended the week in the red, as investors shed stocks in large numbers after the budget failed to enthuse the bourses.
The benchmark indices fell almost 10 per cent from their previous weekly close, the biggest fall since October 2008.
The 30-share sensitive index (Sensex) of the Bombay Stock Exchange (BSE) fell 1,408.83 points or 9.45 per cent over previous Friday's close and ended trade at 13,504.22 points.
The broader S&P CNX Nifty of the National Stock Exchange (NSE) followed the Sensex, losing 9.5 per cent from its last weekly close to end at 4,003.9 points.
While the Sensex slipped over 1,600 points from its weekly highs, the Nifty shed over 500 points from its highs. The Sensex hit an intra-week high of 15,097 and a low of 13,418 points, while the Nifty hit an intra-week high of 4,479 and low of 3,976 points.
Volatility was rife in lesser market capitalised scrips as investors sold across the board. The BSE's midcap index closed 9.03 per cent lower than its previous weekly close, while the BSE smallcap index was down 10.14 per cent.
Data with markets watchdog Securities and Exchange Board of India (SEBI) showed that foreign funds were net sellers during the week, having sold scrips worth $721.2 million. They had sold about $387 million.
The slide began Monday with investors blaming the government for tabling a lacklustre budget, which lacked in any major policy announcement. The increase in minimum alternate tax on corporates also invoked a negative reaction as fears grew that companies' earnings could take a hit.
The benchmark Sensex closed at 14,043.4 points - 869.65 points or 5.83 per cent lower than Friday's close. At one point, it had slipped by more than 900 points.
Similarly, the S&P Nifty ended the day 5.84 per cent down at 4,165.7 points.
Tuesday saw volatile conditions continue. Investors bought into stocks which were at attractive valuations following the huge fall Monday resulting in the Sensex shutting shop 127.05 points or 0.9 per cent up at 14,170.45 points.
The Nifty too closed higher at 4,202.15 points, up 0.88 per cent.
The bears however, resumed their attack Wednesday as key indices reversed the previous day's gains amid negative global cues and the weak progression of the monsoon.
Sensex lost 401 points or 2.8 per cent at 13,769 points, while the Nifty plunged 127 points or 3 per cent to end trade at 4,075 points.
Thursday was another volatile day with the Sensex fluctuating wildly in a 236 point range before closing flat. It fell sharply towards the closing bell to end trade 11.69 points lower at 13,757.46 points.
The Nifty, however, managed to close 0.05 per cent higher at 4,080.95 points.
The downtrend continued Friday, with the Sensex losing its way towards closing bell after rising more than 140 points to end trade over 253 points in the red. It closed at 13,504.22 points.
The Nifty too closed lower at 4,003.9 points, down 1.89 per cent.
The top gainers in the Sensex were ITC (up 9.9 per cent), Hero Honda (up 6 per cent), Ambuja Cements (up 5 per cent), Maruti (up 4.2 per cent) and TCS (up 1.1 per cent).
Among prominent losers were Reliance Capital (down 21 per cent), Reliance Infra (down 20.4 per cent), Tata Steel (down 19.4 per cent), DLF (down 17.4 per cent) and ICICI Bank (down 16.7 per cent).