Sensex tanks 423 on FII selling
Times of India, January 21, 2010, Page 25
Chinese jitters, MUMBAI
Chinese jitters, fresh weakness in markets around the globe and investors’ disappointment with government's divestment plan pulled the sensex down to its lowest close in over a month.
After opening flat, the index slid through the day and ended at 17,051, down 423 points. It was the biggest single-session loss for the sensex this year and third-biggest in the last six months as foreign funds continued selling.
Going forward, market players expect foreign cues and results from domestic heavyweights like RIL and SBI to dictate market's direction. On Thursday, following the 122-point loss in Dow Jones in US the previous night, the sensex opened flat and as selling picked up through the session, touched an intra-day low at 17,025 and closed just a tad higher.
‘‘Markets were looking weak and were vulnerable for the last few sessions. Today when the market broke the key technical support level at about 5,190 on the Nifty (the index closed at 5,094), it appeared as if there was no tomorrow,'' said Arun Kejriwal, director, KRIS, an investment advisory firm.
Selling was across-the-board with all the 30 sensex stocks closing in the red. On the sectoral front, capital goods, power and realty stocks led the slide and all the BSE sectoral indices ended in the red. Among the sensex stocks, L&T was the top loser. L&T results, which were in line with expectation, with top line lower but margins higher, was not liked by the markets, and hence the selling, which led to a 6.9% loss in the stock to Rs 1,524.
The Chinese government's decision on Wednesday to curb lending to cool down a overheated economy also affected market sentiments, especially among the foreign funds. BSE data showed that FIIs have been net sellers during the last few days and on Thursday they had a net selling figure of Rs 854 crore. The day's losses also made investors poorer by Rs 1.6 lakh crore with BSE's market capitalisation now at Rs 61.8 lakh crore.
With a key technical support level broken, the market could slide further, chartists said. “Going forward, markets will look to foreign markets and results from heavyweight companies for further cues,'' said Kejriwal. Fund managers feel there could be some more slide and most are disappointed with the way government is going ahead with divestment. A fall-out of Thursday's slide was that some of the QIPs which have been lined up, did not generate expected response, giving merchant bankers some tough time.
Times of India, January 21, 2010, Page 25
Chinese jitters, MUMBAI
Chinese jitters, fresh weakness in markets around the globe and investors’ disappointment with government's divestment plan pulled the sensex down to its lowest close in over a month.
After opening flat, the index slid through the day and ended at 17,051, down 423 points. It was the biggest single-session loss for the sensex this year and third-biggest in the last six months as foreign funds continued selling.
Going forward, market players expect foreign cues and results from domestic heavyweights like RIL and SBI to dictate market's direction. On Thursday, following the 122-point loss in Dow Jones in US the previous night, the sensex opened flat and as selling picked up through the session, touched an intra-day low at 17,025 and closed just a tad higher.
‘‘Markets were looking weak and were vulnerable for the last few sessions. Today when the market broke the key technical support level at about 5,190 on the Nifty (the index closed at 5,094), it appeared as if there was no tomorrow,'' said Arun Kejriwal, director, KRIS, an investment advisory firm.
Selling was across-the-board with all the 30 sensex stocks closing in the red. On the sectoral front, capital goods, power and realty stocks led the slide and all the BSE sectoral indices ended in the red. Among the sensex stocks, L&T was the top loser. L&T results, which were in line with expectation, with top line lower but margins higher, was not liked by the markets, and hence the selling, which led to a 6.9% loss in the stock to Rs 1,524.
The Chinese government's decision on Wednesday to curb lending to cool down a overheated economy also affected market sentiments, especially among the foreign funds. BSE data showed that FIIs have been net sellers during the last few days and on Thursday they had a net selling figure of Rs 854 crore. The day's losses also made investors poorer by Rs 1.6 lakh crore with BSE's market capitalisation now at Rs 61.8 lakh crore.
With a key technical support level broken, the market could slide further, chartists said. “Going forward, markets will look to foreign markets and results from heavyweight companies for further cues,'' said Kejriwal. Fund managers feel there could be some more slide and most are disappointed with the way government is going ahead with divestment. A fall-out of Thursday's slide was that some of the QIPs which have been lined up, did not generate expected response, giving merchant bankers some tough time.
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