<p>Domestic equities witnessed a huge bloodbath in Dalal Street in the very first week of 2011, as bears took charge resulting in key indices, Sensex and Nifty, fell below their psychologically important 20,000 and 6,000 levels, respectively. <br /><br />Stocks extended losses in late trade with the key benchmark indices extending a three-day losing streak on rising fears of an interest rate hike by the central bank at a policy review scheduled later this month. <br /><br />Taking cues from the world markets, domestic markets opened in green, but resumed its southbound journey as metal and auto stocks caved in consequent to European and most Asian markets declined as caution prevailed in world markets ahead of the key US non-farm payrolls data later in the day.<br /><br />The selling pressure during the day was so intense, more so, in the last one hour of the trade, and across sectors, that all sectoral indices too ended in red with losses in excess of One (1) per cent each. Foreign institutional investors (FIIs) sold shares worth a net Rs 213.80 crore on Thursday. <br /><br />The Sensex touched a high of 20,211 in opening trades, but tumbled to a low of 19,629 - down 581 points from the day’s high. Finally, the Sensex ended with a loss of 492.93 points or 2.44 per cent to close at 19,691.81 points. <br /><br />This was one of the biggest fall in the last seven months as way back on May 25, the Sensex had dropped 2.7 per cent.<br /><br />Panic selling across the board saw all the 30-Sensex shares and all the 13 sectoral indices ending the day in the negative zone with metals and auto as the worst hit.<br />In a major blow to the broader market, the heavy-weights including RIL and Infosys declined by 1.76 per cent and 3.15 per cent, respectively.<br /><br />Intense profit-booking in the metal stocks including Hindalco (down 7.02 per cent), Sterlite Industries (down 4.06 per cent), and Tata Steel (down 3.35 per cent) weighed heavily on the street. With the day’s fall, the Sensex has shed 869 points (4.2 per cent) in the last four trading sessions. Barring the first day of this week and the year 2011, the markets have been in red throughout.<br /><br />The NSE Nifty saw the index slip below its psychological 6,000 mark and then even below 5,900-level but managed to recover a bit to settle at 5,904.60 at the day’s closing, which days loss of 144 points or 2.38 per cent. The market breadth, indicating the health of the market, was weak with as many as 2,396 shares on BSE declined while 621 stocks and a total of 65 scrips remained unchanged. Meanwhile in the European markets, all the indices opened in the negative for the seckond day in a row. Most Asian stocks fell on caution ahead of US non-farm payrolls data later in the day. The key benchmark indices in Indonesia, Hong Kong, Singapore and Taiwan were down by between 0.42 to 2.81 per cent.</p>
<p>Domestic equities witnessed a huge bloodbath in Dalal Street in the very first week of 2011, as bears took charge resulting in key indices, Sensex and Nifty, fell below their psychologically important 20,000 and 6,000 levels, respectively. <br /><br />Stocks extended losses in late trade with the key benchmark indices extending a three-day losing streak on rising fears of an interest rate hike by the central bank at a policy review scheduled later this month. <br /><br />Taking cues from the world markets, domestic markets opened in green, but resumed its southbound journey as metal and auto stocks caved in consequent to European and most Asian markets declined as caution prevailed in world markets ahead of the key US non-farm payrolls data later in the day.<br /><br />The selling pressure during the day was so intense, more so, in the last one hour of the trade, and across sectors, that all sectoral indices too ended in red with losses in excess of One (1) per cent each. Foreign institutional investors (FIIs) sold shares worth a net Rs 213.80 crore on Thursday. <br /><br />The Sensex touched a high of 20,211 in opening trades, but tumbled to a low of 19,629 - down 581 points from the day’s high. Finally, the Sensex ended with a loss of 492.93 points or 2.44 per cent to close at 19,691.81 points. <br /><br />This was one of the biggest fall in the last seven months as way back on May 25, the Sensex had dropped 2.7 per cent.<br /><br />Panic selling across the board saw all the 30-Sensex shares and all the 13 sectoral indices ending the day in the negative zone with metals and auto as the worst hit.<br />In a major blow to the broader market, the heavy-weights including RIL and Infosys declined by 1.76 per cent and 3.15 per cent, respectively.<br /><br />Intense profit-booking in the metal stocks including Hindalco (down 7.02 per cent), Sterlite Industries (down 4.06 per cent), and Tata Steel (down 3.35 per cent) weighed heavily on the street. With the day’s fall, the Sensex has shed 869 points (4.2 per cent) in the last four trading sessions. Barring the first day of this week and the year 2011, the markets have been in red throughout.<br /><br />The NSE Nifty saw the index slip below its psychological 6,000 mark and then even below 5,900-level but managed to recover a bit to settle at 5,904.60 at the day’s closing, which days loss of 144 points or 2.38 per cent. The market breadth, indicating the health of the market, was weak with as many as 2,396 shares on BSE declined while 621 stocks and a total of 65 scrips remained unchanged. Meanwhile in the European markets, all the indices opened in the negative for the seckond day in a row. Most Asian stocks fell on caution ahead of US non-farm payrolls data later in the day. The key benchmark indices in Indonesia, Hong Kong, Singapore and Taiwan were down by between 0.42 to 2.81 per cent.</p>
