Sensex ends 801 pts down on weak global mkts and declining IIP growth

Sensex ends 801 pts down on weak global markets and declining growth
Market retreats on dismal IIP growth at 1.3%
Inflation eases but no respite for markets; Sensex down 7%
Stock futures point to sharply lower Wall Street open

Investors, taking cues from bleeding global markets, pressed the panic button at the opening bell on the major Indian bourses this morning. As stock prices went tumbling down, the Sensex crashed by around 9.5% to 10,239.76 within the first few minutes.

Stockometer
Infosys Technologies reported a near 10% jump (quarter on quarter) in its net profit but the company's sales fell short of market expectations and the stock went down by over 17% to Rs 1040. Other IT majors and a host of old economy blue chips, including index heavyweights, too nosedived on selling pressure. Infosys Technologies, however, bounced back smartly - it even enjoyed a spell in the positive territory this afternoon - and significantly trimmed down its losses.
Top gainers
Just as it appeared that the Sensex would hit the 10% lower circuit and force a stoppage of trade, the Reserve Bank announced a surprise 150 basis point cut in Cash Reserve Ratio. The Sensex then staged a strong recovery and rose to a high of 10,904.13. The Nifty, which had plunged to 3198.95 in early trade, rallied to around 3400.
Worst losers
However, the recovery proved short-lived as dismal industrial production figures triggered another strong round of selling across the board. Thereafter, despite a couple of modest recoveries from lower levels, the benchmark indices Sensex and Nifty ended the session with huge losses today.
Scrip Scan
While the Sensex ended the day at 10,527.85 with a loss of 800.51 points or 7.07%, the Nifty settled at 3279.95 with a loss of 233.70 points or 6.65%.
Experts' Talk
Ranbaxy Laboratories (4.75%) and State Bank of India (2.3%) were the only gainers from the Sensex today. From the Nifty pack, except Ranbaxy and State Bank of India, the others ended in the negative zone.
Reliance Communications lost a little over 21%. ICICI Bank, despite regaining some lost ground, closed lower by as much as 19.7% today. Reliance Infrastructure lost 19.2%. Jaiprakash Associates eased by 16.25%. Tata Steel lost nearly 15%. Hindalco went down by 11.15%.
HDFC, DLF, BHEL and Larsen & Toubro lost 8% - 9%. Reliance Industries posted a loss of 7.4%. Hindustan Unilever, Wipro, Sterlite Industries, Grasim Industries, Bharti Airtel, Satyam Computer Services, NTPC, HDFC Bank, ACC, Mahindra & Mahindra, ONGC, Tata Motors, Tata Power, Tata Consultancy Services, Tata Motors, Maruti Suzuki and ITC also ended with sharp losses.

Suzlon Energy lost 17.65% today. Unitech (down 12.15%), Cairn India (down 11.9%) and Ambuja Cements (down 11.6%) also suffered heavy losses. Reliance Power, Tata Communications, HCL Technologies, Siemens, ABB, Zee Entertainment, SAIL, Cipla, Punjab National Bank, GAIL India, Sun Pharmaceuticals and Reliance Petroleum lost 5% - 9%.

Realty stocks Orbit Corporation, India Bulls Real Estate, HDIL, Mahindra Lifespace, Penland, Anant Raj Industries, Akruti City and Omaxe declined sharply.

Metal stocks Welspun Gujarat, Gujarat NRE Coke, Jindal Saw, Ispat Industries, Sesa Goa, Jindal Steel, Hindustan Zinc, Jai Corp and NMDC suffered sharp losses.

Among capital goods stocks, Elecon Engineering, Jyoti Structure, Punjab Lloyd, Usha Martin, Areva, Walchandnagar Industries, Alstom Projects, Reliance Industrial Infrastructure, Everest Kanto Cylinder, Crompton Greaves, Havells India, Gammon India, BEML, Bharat Bijli, AIA Engineering and Lakshmi Machine Works went down sharply.

Midcap and smallcap stocks were battered once again. Mirroring the sell-off, the Midcap and smallcap indices lost 8.34% and 7.31% respectively.

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The market breadth was very weak. Out of a total of 2619 stocks traded on BSE today, only 382 stocks closed on a positive note. 2189 stocks posted losses and 48 stocks ended flat.

Sensex sheds another 800pts, down over 50% from peak

Source:Sify,ET,BS etc