Sensex dives 2.3% on liquidity, scams
FIIs pull out Rs 1,298 cr in a day when a series of bad news hit markets, ruining investor sentiment. HT reports. Bears' day out on Dalal Streetbusiness Updated: Dec 10, 2010 02:28 IST
As domestic sentiments turned negative on news of scams and raids, the benchmark Sensex of the Bombay Stock Exchange on Thursday fell sharply by 454 points, or 2.3%, to close at 19,242, amidst FII (foreign institutional investors) outflow.
The broader Nifty of the National Stock Exchange also fell by 137 points to 5,767.
Only three of the 30 stocks in the Sensex were able to buck the trend during a day when net FII outflow stood at Rs1,298 crore.
Small-cap and mid-cap were amongst the worst hit on Thursday. While small-caps fell by 5.9%, the mid-cap index was down by 4.5%.
Among the sectoral indices, consumer durables, which fell by 6.3%, was the worst hit. The real estate index fell by 4.8%.
"Overall the undertone is pretty weak amid the barrage of bad news hitting the market. Be it the various scams (from 2G to UP foodgrains), concerns on bank's profitability, sudden selling by the FIIs, liquidity crunch, or the number of stories on stock price manipulation, nothing seems to be going in favour of the market," said Amar Ambani, head of research at India Infoline.
LIC Housing, Ruch Soya and Welspun Corp - under SEBI's scanner over alleged irregularities - also suffered losses.