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Markets back in bearish mode

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Special Correspondent

Sensex sheds 570 points; all broader indices are in the red

MUMBAI: Stock markets failed to hold on to their gains of Wednesday as the key stock index on the Bombay Stock Exchange dipped by 570.41 points or 4.18 per cent on Thursday, a day ahead of the release of next inflation data. Surging global oil prices and more-than-expected inflationary pressures are driving investors to shed their holdings in equities.

The BSE 30-share sensitive index (Sensex) closed at 13094.11. It hit a low of 12934.92 with a loss of 729.70 points in intra-day, as compared to Wednesday’s closing. A partial recovery among some Sensex heavy weights, Reliance Industries and State Bank of India, saved the benchmark index from another major fall. On the National Stock Exchange, the 50-share Nifty lost 167.60 points or 4.09 per cent to close at 3925.75.

Realty major, DLF’s buy back plan failed to enthuse investors and realty stocks led the sharp fall with a loss of 9.21 per cent. BSE metal index lost 8.50 per cent, power 4.67 per cent, banking stocks 4.59 per cent, tech stocks 4.09 per cent and a lone gainer two days back, FMCG, lost 4.03 per cent.

All broader indices also closed in the negative territory. BSE midcap lost 149.54 points or 2.82 per cent, smallcap 157.63 points or 2.42 per cent and BSE-500 lost 216.61 points or 4.13 per cent.

Global oil prices are surging ahead and touched a $145.22 a barrel, which will further increase the inflationary pressures. However, most European markets closed in the positive territory on Thursday. In Asia, Hong Kong’s Hang Seng lost a huge 461.67 points at 21242.78 and Japan’s Nikkei lost 20.97 points at 13265.40. Another U.S. Government data which indicates the health of the U.S. economy on Thursday showed that U.S. employers cut workers from their payrolls for the sixth straight month in June for the longest losing employment streak since 2002. All U.S. stock indices plunged when markets opened for Thursday.


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