Sensex nosedives 477 pts as blue chips tumble at close

Sensex nosedives 477 pts as blue chips tumble at close


NSE
6074.25 -132.55
BSE
20251.09 -476.96


After opening with a positive gap and edging up a bit in early trade, the Sensex plunged into the red this morning. And it never made it to the positive territory again as the bulls went shopping at the Reliance IPO counters today. The mega offer from Reliance Power got fully subscribed within minutes and, as the demand grew multifold, it got subscribed nearly 10 times.
As a result, prices of front line stocks went into a tailspin this afternoon. Though the market managed a couple of mild rallies, a very strong bout of selling pressure blew the wind out of several blue chip stocks cutting across sectors and pushed the benchmark indices Sensex and Nifty deep down into the red. Asian markets, which opened on a positive note, gave up their gains and ended weak. European stocks also exhibited weakness. But, the rush for Reliance Power IPO was the significant contributor for the sharp fall in values on the Indian bourses today.
While the Sensex, which crashed to a low of 20,203.63 in the closing minutes, ended the session with a massive loss of 476.96 points or 2.3% at 20,251.09, the Nifty settled at 6074.25, around 21 points off its low of 6053.30, with a 2.14% (132.55) points loss.
Mirroring all-round selling, all the sectoral indices ended in red today. The Bankex, FMCG, Power, PSU and Teck indices went down by 2.1% - 2.6%. The IT, Capital Goods and Oil & Gas indices lost nearly 2% while the Realty and Metal indices closed lower by 1.65% and 1.3% respectively. The Auto and Healthcare indices eased by around 0.75% while the Consumer Durables index, which suffered the least damage, ended lower by 0.39%.
There were just three gainers in the Sensex today. Tata Steel (1.55%) and Maruti Suzuki (1.45%) ended with strong gains while Tata Motors closed with a gain of a little over half a per cent.
Among Nifty stocks, VSNL (1.1%), Tata Power (1.1%), Zee Entertainment (0.8%), Dr. Reddy's Laboratories (0.7%) and Hero Honda (0.25%) closed on a positive note. HDFC Bank, which ended with a marginal loss on BSE, closed with a small gain on the National Stock Exchange.
Bharti Airtel had another weak outing. The telecom stock, which remained deep down in the red right through the session today, closed with a sharp loss of 5.5%. Reliance Energy lost 4.4%. ICICI Bank eased by over 4%.
NTPC, ITC, Reliance Communications, Satyam Computer Services, Mahindra & Mahindra, Larsen & Toubro, HDFC, DLF, Ranbaxy Laboratories, BHEL, Tata Consultancy Services and Hindalco lost 2% - 4% today.
State Bank of India (down 1.95%), Infosys Technologies (down 1.85%), Reliance Industries (down 1.65%), Hindustan Unilever (down 1.5%) and ONGC (down 1%) also ended with sharp losses.
ACC, Bajaj Auto, Wipro and Cipla closed with marginal losses while Ambuja Cements and Grasim Industries eased by 0.8% and 0.9% respectively.
BPCL, Suzlon Energy, GlaxoSmithKline Pharma, Sterlite Industries, GAIL India, Nalco, SAIL, Reliance Petroleum, HCL Technologies, Siemens, ABB and Unitech declined sharply today.
Parsvnath Developers, Apollo Tyres, Tata Tea, Omaxe, Shipping Corporation of India, HCL Infosys, Exide Industries, Axis Bank, Bombay Dyeing, Engineers India, Sun TV Network, Raymond, Aurobindo Pharma, Sterlite Technologies and Power Finance Corporation ended with sharp losses.
Finolex Industries shot up by over 9%. Adani Enterprises, Mirc Electronics, Welspun Gujarat, Crompton Greaves, Lanco Infratech, Allahabad Bank, LIC Housing Finance, Indo Rama Synthetics, Bharat Earth Movers, Orchid Chemicals, Bank of India, Escorts, Aventis Pharma, Jet Airways and Idea Cellular moved on to higher levels today.
After exhibiting strength till a little past noon, mid and smallcap stocks wilted under pressure in afternoon trade and surrendered their gains. The Midcap index fell 1.1% today while the Smallcap barometer eased by 0.83%.
The market breadth turned quite weak this afternoon. When traded ended today, out of a total of 2888 stocks that were seen in action on BSE, only 992 stocks were up in the positive territory. As many as 1865 stocks ended with losses and 31 stocks finished at their previous closing levels.

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