Bears on bourses maul scrips to new lows

The key benchmark indices once again breached psychological levels this day in a highly intra-day volatile trade, as the bellwether index of BSE plunged below 19,000 mark, while the 50-unit Nifty at NSE dipped below 5,700 levels.

With this, they (key indices) slumped to four-month lows as European stocks fell and as US index futures edged lower after China’s central bank raised lenders’ reserve requirements by 50 basis points. So much so, the market has declined in eight out of the last nine trading sessions. Wild intraday swings were the order of the day. Bank stocks tumbling in choppy trade reinforcing fears of a rate hike by the apex bank. Other interest rate sensitive stocks like auto and realty too edged lower, so was metal shares dropped as commodity prices fell. 

Intraday volatility has been high in the day as the trading session saw intense swings. The market dropped in early trade, as most Asian stocks fell. Then the key benchmark indices trimmed losses after hitting seven-week lows in morning trade. Then it saw fresh intraday highs as the market once again moved into positive zone later, again slipped into the red in mid-afternoon trade, reversing strong gains in afternoon trade and thereafter stocks extended losses in late trade.

Foreign funds continue to press sales in the day. FIIs sold shares worth a net Rs 112.60 crore on Thursday, higher than an outflow of Rs 98.20 crore on January 12, 2011. The Sensex down 322.38 points or 1.68 per cent to close at 18,860.44, its lowest closing level since September 9, 2010. The bellwether index rose 265 points at the day’s high in afternoon trade and shed 370.86 points at the day’s low in late trade.

The 50-unit S&P CNX Nifty at NSE was down 97.35 points or 1.69 per cent to settle at 5,654.55 in the day’s closing, its lowest level since September 9, 2010. The Nifty hit low of 5639.65 in late trade.

Broader indices wise, the BSE Mid-Cap index fell 1.18 per cent, while the BSE Small-Cap index declined 1.04 per cent. Both these indices outperformed the Sensex. The market breadth was weak with as many as 2,009 shares on BSE declined while 882 scrips advanced.