Business Daily from THE HINDU group of publications
Tuesday, Dec 12, 2006
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Business Daily from THE HINDU group of publications Tuesday, Dec 12, 2006 ePaper |
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Stock Markets Markets - Stocks Our Bureau
Hard hit BSE Bankex, the worst hit, among sectoral indices losing 6.43 per cent. FIIs, net buyers for Rs 334.21 crore, as per provisional figures on the NSE. Not a stock in BSE-30 Sensex gained today.
TIME FOR PRAYER: A vendor selling posters of Lakshmi, the Goddess of Wealth, on Dalal Street in Mumbai on Monday. — Paul Noronha
Mumbai , Dec. 11 For the second consecutive trading day, the dizzy rise in stock markets paused following the Reserve Bank of India's rate hike in the cash reserve ratio (CRR) for banks.
Intra-day dip
Markets took a huge dip intra-day with stocks of all leading companies trading in the negative zone. The correction, however, was due though traders did not anticipate the steep fall in share prices. Banking stocks led the downfall with the BSE-30 Sensex losing 400.06 points or 2.99 per cent to end the day on Monday at 13,399.43. S&P CNX Nifty lost 2.84 per closing at 3,849.50. BSE Bankex was the worst hit among sectoral indices losing 6.43 per cent or 463.96 points at 6,749.78 points. Bank Nifty lost 7.12 per cent at 5,790.60 points. "Banking stocks reacted to the RBI's policy and the trend percolated to all the sectors," said Ms Sandeepa Arora, Vice-President, India Infoline Ltd. FIIs had taken short positions in the market last week, which got reflected in today's slide. "There already was a good amount of negativity in the market which was evident in the fact that markets opened weak. FIIs were net sellers of Rs 1,087 crore in index-based futures on December 8 which may have contributed to today's fall but it was not the main trigger," said Mr Yuvraj Sehgal, Head of derivatives, Brics Securities. FIIs were reportedly net sellers of about Rs 106 crore in individual stock futures on Frdiay. Today, FIIs were net buyers for Rs 334.21 crore, as per provisional figures on the NSE.
Plunge
"Nothing has changed in terms of fundamentals of companies with the huge plunge. The valuations are also reasonable with the current P/E levels at 22, which is quite acceptable for the India growth story," said Mr Ananta P. Sarma, Executive Vice-President at IDBI Capital. The advance-decline ratio in BSE was 1: 4. Not a stock in the BSE-30 Sensex gained today. SBI was the biggest loser, down 8.18 per cent at Rs 1,242.75. ICICI Bank lost 6.54 per cent at Rs 819.40.
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