The key benchmark indices ended sharply lower as uncertainty over
the fate of the US government's $700 billion rescue plan for the
financial sector hurt investor sentiment. As per provisional
closing, the BSE 30-share Sensex was down 485.64. News of the
biggest ever US bank failure compounded the bearish sentiments,
with the US government brokering a last-ditch purchase of thrift
Washington Mutual by JPMorgan.
All the sectoral indices on BSE, barring the FMCG index, ended in
red. Mid-cap and small-cap stocks, too, witnessed major selling
pressure. India's largest drug maker by sales Ranbaxy Laboratories
slumped.
Weak US economic data also weighed on market sentiments. Data
released overnight showed US-made durable goods fell 4.5% in August
2008, while sales of new homes in the US dropped 11.5% during the
month. First-time jobless claims in the US rose to their highest
count in seven years pointing to a slow down.
European market, which opened after Indian markets, were negative.
Key indices in UK, France and Germany were down 2.07% to 2.12%.
Asian market, which opened before Indian market, were in red. Key
benchmark indices in China, Hong Kong, Japan, South Korea,
Singapore and Taiwan were down by between 0.16% to 2.16%.
As per provisional closing, the BSE 30-share Sensex was down 485.64
points or 3.58% to 13,061.54. The index shed 492.76 points at the
day's low of 13,054.42 at the fag end of the trade. The Sensex fell
60.98 points at day's high of 13,486.20, hit at the onset of
trading session.
The S&P CNX Nifty was down 137.10 points or 3.34% to 3973.45.
The BSE Mid-Cap index was down 3.17% at 4,931.52 and the BSE
Small-Cap index was down 3.28% at 5,851.54.
The market breadth was poor on BSE with 455 shares advancing as
compared to 2158 that declined. 60 shares remained unchanged.
BSE clocked a turnover of Rs 4835 crore as against Rs 5,070.61
crore on Thursday, 25 September 2008.
ITC (up 1.11% at Rs 190.50), Hindustan Unilever (up 0.98% at Rs
252), and ACC (p 0.47% at Rs 614), were the only gainers from the
Sensex pack.
Ranbaxy Laboratories (down 7.07% at Rs 275.25), Mahindra & Mahindra
(down 6.235 at Rs 524), Sterlite Industries (down 5.95% at Rs
448.75), Bharat Heavy Electricals (down 5.635 at Rs 1541), and Tata
Steel (down 4.88% at Rs 461.40), were the major losers from the
Sensex pack.
India's largest private sector firm by market capitalisation and
oil refiner Reliance Industries (RIL) fell 3.17% at Rs 1960.90.
India's second largest software exporter by sales Infosys
Technologies fell 3.80% at Rs 1447.70.
India's largest private sector bank by market capitalisation ICICI
Bank fell 5.83% at Rs 561.25.
At 16:20 IST, the crude oil for November 2008 delivery hovered at
$105.34 a barrel on the New York Mercantile Exchange.
The US Congress struggled to find agreement on modifying the Bush
proposal to attack the housing market crisis. The Bush
administration, last week, proposed a $700 billion financial rescue
package, aimed at staving off the collapse of the US financial
system. Meanwhile, a group of conservative Republican lawmakers
proposed an alternative mortgage insurance plan.
In a major development, JPMorgan Chase acquired the banking assets
of Washington Mutual late on Thursday, 25 September 2008, after the
troubled thrift was seized by federal regulators, marking the
biggest bank failure in the United States and the latest stunning
twist in the ongoing credit crisis.
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