Sensex tumbles to a week low ahead of derivatives expiry
The Bombay Stock Exchange benchmark Sensex today fell further by 216 points on funds booking profits on the eve of October's contract expiry in the derivatives segment amid weak global cues.business Updated: Oct 27, 2010 17:07 IST
The Bombay Stock Exchange (BSE) benchmark Sensex on Wednesday fell further by 216 points on funds booking profits on the eve of October's contract expiry in the derivatives segment amid weak global cues.
The Sensex, which had lost 82 points in the previous session, dropped further by 216.02 points to 20,005.37 after dipping to a low of 19,923.71 on brisk selling by funds.
The broad-based National Stock Exchange index Nifty dropped by 69.35 points to 6,012.65 as heavy-weight stocks, led by realty and banking sectors suffered major losses. It touched the day's low of 5,987.55 points.
The funds and investors were seen clearing their pending positions at existing higher level before the expiry of derivate sector tomorrow, amid weakening trend in Asia and lower opening in European stock markets this afternoon.
Selling pressure gathered momentum following reports of NTPC Ltd, Asian Paint and software exporter Tech Mahindra posting low quarterly earnings.
In 30-BSE index components, 22 stocks declined while seven ended in positive zone and Wipro in volatile trading settled at previous level.
NTPC, the largest power producer, dropped the most in five months after profit dropped for the third quarter in a row. Tech Mahindra declined for the first time in five days after profit fell more than market expected, and Asian Paints slid the most in 15 months after posting a 21 per cent fall in profits.
The NTPC fell by Rs 6.45 to Rs 198.75, Tech Mahindra by Rs 16.85 to Rs 768.70, and Asian Paints by Rs 94.20.
The heaviest weight Reliance Industries fell by Rs 3.85 to Rs 1,092.65, second-heaviest Infosys Technologies by Rs 35.60 to Rs 2,984.25 and largest private lender ICICI Bank by Rs 25.20 to Rs 1,106.25. The three scrips carry nearly 28 per cent weightage on the Sensex.
The realty sector index suffered the most by losing 2.07 per cent to 3,742.22 followed by FMCG index by 1.61 per cent to 3,582.79. Banking sector index fell by 1.19 per cent to 13,891.99 and Teck index by 1.04 per cent to 3,706.79.
A weakening trend was bucked as stocks of consumer durable and metal sector gained on selective buying by investors on expectations of better revenue this quarter on rising demand for products in the festival season of Diwali.