The Hindu : Business : Fiscal year ends on subdued note

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Tuesday, Apr 01, 2008
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Business

Fiscal year ends on subdued note

Special Correspondent

Sensex nosedives by 727 points on Monday

Negative global cues dampen sentiment
New accounting norms impact markets

MUMBAI: The fiscal year of 2007-08 ended with a sharp fall on bourses with Bombay Stock Exchange 30-Share Sensitive Index (Sensex) lost 726.85 points on Monday. The Sensex also posted a record loss of 23 per cent in the last quarter of the current fiscal, which recorded its biggest ever fall since 1992.

Negative cues from the global markets also dampened the sentiment, taking the benchmark index below 16,000-mark. The sentiment also hit by the reports that the Institute of Chartered Accounts of India (ICAI) has asked companies to disclose losses on a mark-to-market basis incurred due to derivatives trades from the current fiscal year onwards (year ending March 31, 2008) as a precursor to making a new accounting standards, the AS-30, which is mandatory from April 2011.

This requirement is likely to hit the bottom line of many companies in the last quarter of 2007-08. Inflationary pressures and cues from global markets further hit the sentiment on bourses.

The Sensex closed at 15644.44 with a loss of 726.85 points compared to Friday’s close of 16371.29. On NSE the 50-Share Nifty lost 207.50 points to end at 4734.50 against 4942. The broader BSE mid cap lost 94.97 points at 6427.82 and the BSE small cap lost 60.37 points at 7841.62. The BSE 500 yielded 238.20 points at 6157.27. Bank, IT and realty socks led the fall on Monday.

Asian markets settled lower. Hong Kong’s Hang Seng was down by 1.88 per cent and Japan’s Nikkei was dropped by 2.30 per cent. European markets too opened lower. However the U.S. markets began with a positive note.

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