Sensex reacts downward by 3 pc, RIL worst hit
The bellwether BSE Sensex reacted sharply downwards by nearly 3 per cent during the week under review, led by a steep fall in the heavyweight Reliance Industries (RIL) amid fresh capital outflows.business Updated: Oct 24, 2009 16:32 IST
The bellwether BSE Sensex reacted sharply downwards by nearly 3 per cent during the week under review, led by a steep fall in the heavyweight Reliance Industries (RIL) amid fresh capital outflows.
The Bombay Stock Exchange 30-share barometer hovered in the range between 17,457.26 and 16,721.26 before closing the week ended October 23, at 16,810.81, down sharply by 515.20 points or 2.97 per cent over its preceeding weekend's close.
Petro-chem giant RIL suffered the most and led the fall in the Sensex, following the legal battle between the two Ambani brothers — Mukesh and Anil Ambani — over gas pricing and on reports of poor gas find in one of its wells.
RIL fell by Rs 177.45 or 7.98 per cent in the week. On the last day of the trading session yesterday RIL shares nosedived by 4 per cent as its partner, Britain's Hardy Oil and Gas, said it was abandoning work on an exploratory well in a Krishna Godavari basin block owing to poor gas find.
Besides IT and FMCG counters that evoked good buying response, all other shares attracted profit-booking and ended the week with sharp to moderate losses.
Similarly, the broader 50-issue Nifty of the National Stock Exchange too fell by 144.75 points or 2.82 per cent to settle the week at 4,997.05 from its previous weekend's close.
According to brokers, the market resumed on a strong note after Cabinet's decision to offload five per cent stake in power generation major NTPC and 10 per cent in another unlisted power firm Satluj Jal Vidyut Nigam.
After pumping in Rs 1,770 crore on October 20, Foreign Institutional Institutional Investors (FIIs), the main market driver, pulled out over Rs 1,160 crore in next three sessions.
Market participants ignored the economic growth projection of 6.75 per cent this fiscal by the Prime Minister's Economic Advisory Council following weak global markets.
Some brokers said investors were concerned that the sale of shares worth over Rs 32,000 crore to institutional investors by Indian firms in the last more than six months could suck out liquidity from the secondary market.
Rise in the inflation figure to 1.21 per cent for the week ended October 10, against 0.92 per cent in the previous week, also weighed on the interest rate related counters at the fag end of the week.
Downward march was further fueled as Moody's Investors Service downgraded the ratings of 13 Indian commercial banks after its global review of systemic support indicators for individual banking systems, brokers said.
From sectorial indices, the BSE-Oil&Gas plunged by 686.31 points or 6.42 per cent, the BSE-CG by 818.51 points or 5.74 per cent, the BSE-CD by 183.39 points or 4.80 per cent and the BSE-Realty by 164.43 points or 3.51 per cent.
Among sensex-based counters, Grasim Ind tumbled by 10 per cent, Jaipra Asso by 8.64 per cent, Tata Motors by 5.75 per cent, L&T by 7.10 per cent, Tata Steel by 5.75 per cent, REL Infra by 5.27 per cent and ONGC by 5.13 per cent.
The turnover on the BSE and the NSE stood at Rs 22,297.16 crore and Rs 69,176.87 crore. The stock markets were closed on October 19 for observing "Bhaubeej".