Sensex falls over 600 points, ends below 14,000
The BSE benchmark Sensex tumbled about 626.71 points to close at 14,784.92 on Monday due to frantic selling by funds in line with weakening global trends.business Updated: Aug 17, 2009 19:35 IST
The Bombay Stock Exchange benchmark Sensex on Monday suffered most in one month by losing nearly 627 points on frantic selling by funds because of a steep fall in global markets and investors booking profits.
The Sensex, which notched up nearly a 1.71 per cent gain in the previous week, plunged by 626.71 points at 14,784.92,the biggest fall since July 6, the day the Budget was presented. The index touched the day's low of 14,740.63. All the Sensex stocks closed with moderate to notable losses.
Similarly, the wide-based National Stock Exchange index Nifty lost 192.15 points at 4,387.90 as heavy-weights led by
the realty sector showed hefty declines. The Nifty touched the day's low of 4,374.60 points.
Marketmen said the bourse tumbled here tailing weak Asian peers as concerns grew that global economic recovery
may be more difficult than expected after data showed US consumer confidence fell to its lowest since March.
They said the selling wave was so strong that almost all sectoral indices showed biggest fall in recent times.
Market sentiment turned bearish also on reports of an international agency saying the stocks might decline up to
15 per cent on concerns that lower monsoon rain would slash farm output and cut consumer spending.
The Sensex has dropped 5.7 per cent this month on concerns that the poorest monsoon rain in seven years will cut
farm output and dent economic growth.
After a weak start in European stocks of nearly two per cent, most Asian markets led by Hong Kong, Japan, China and
Singapore recorded hefty losses.
China's Shanghai index dropped 5.79, Hong Kong's Hang Sang 3.62 per cent, Singapore's Straits Times 3.25 per cent
and Japan's Nikkei 3.10 per cent.
An unexpected fall in the American consumer confidence index caused concerns about revival in the global economy,
and selling pressure rose in stock markets the world over.
Foreign institutional investors (FIIs) reportedly were heavy sellers throughout. They have been net sellers so far in the month and have sold more than Rs 2,364 crore in equity in the first 15 days of August.
The realty sector index declined the most, by 7.58 per cent, at 3,662.70, followed by the metals index, 6.15 per
cent, to 11,938.91, after Sterlite Industries was down 6.69 per cent as copper declined for a second day.
The auto sector index dropped 4.77 per cent to 5,303.5, oil and gas 4.42 per cent to 9,432.51, and banking 4.08 per
cent to 7,947.87.