Financial Daily from THE HINDU group of publications
Tuesday, Aug 26, 2003
Industry & Economy - Terrorism
Markets - Stock Markets
Money & Banking - Financial Markets
Markets tremble, Sensex down 120 points
Mumbai , Aug. 25
THE two bomb blasts in Mumbai today rocked trading on the equities, currency and bond markets, sharply shearing gains made over the last few weeks.
Bringing back memories of the 1993 serial blasts, players panicked as news of the first bomb blast opposite the Taj Hotel came in.
Trading, which opened strong, lost nerve with the Sensex seeing an intra-day movement of around 227 points.
BSE 30 shares index, Sensex ended the day 120.49 points down (2.92 per cent) at 4,004.63 and the NSE's S&P CNX Nifty ended lower by 40.05 points (3.05 per cent) at 1,271.10.
The fall in the much broader indices such as BSE-100, BSE-200 and CNX Midcap 200 was much steeper indicating selling in mid-cap and small stocks.
The combined turnover of BSE and NSE (cash and derivatives) crossed over Rs 17,700 crore.
In the local currency market, the rupee fell 18 paise intra-day following panic buying of dollar by both corporates and banks but later recovered partially to end the day at 45.91/92.
The currency lost about 8 paise over Friday's close.
The bond market buoyed by Saturday's cut in repo rate in the morning, also received a sudden jerk in the afternoon following the blasts.
The prices of Government securities fell by 75 to 100 paise but later recovered fully.
The trading volume in the G-sec market touched an all-time high of over Rs 13,000 crore.
The selling was sharp in the index stocks. But two Sensex stocks HDFC and Ranbaxy closed higher from Friday's closing. Similarly among the Nifty list just four stocks Ranbaxy, HDFC, NIIT and VSNL closed higher.
In today's trading selling was by both the institutional and other investors.
However, some value buying was seen at lower levels.
The market analyst, Mr Abhay Aima, said "a correction in the stock price was expected after the sharp rise last week. But today's fall was steeper than expected."
Mr Girish Nadkarni, Director, TAIB Securities, said the blasts have created uncertainty in the market. One has to wait and watch and see how the events unfold in the days to come.
NSE derivatives segment posts record volume
NSE today recorded an all time high volume in the derivatives segment at Rs 10,403.66 crore. The previous highest was Rs 7,859.34 crore recorded on August 22, 2003.
Of the various derivatives instruments traded, S&P CNX Nifty futures recorded a volume of Rs 2,669.75 crore. S&P CNX Nifty options recorded a volume of Rs 327.12 crore. Options on individual securities recorded a volume of Rs 1,177.10 crore and futures on individual securities recorded a volume of Rs 6,229.70 crore. The derivative turnover on BSE was Rs 36.16 crore.
The trading today also saw one of the highest turnovers so far on the Indian bourses with the combined turnover of BSE and NSE (cash and derivatives) crossing over Rs 17,700 crore.
In NSE's cash market segment, the turnover was Rs 5,165.24 crore and on BSE's cash market the turnover was Rs 2,123.55 crore.
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