Pivotals plunge on selling spree

Pivotals plunge on selling spree

Sensex sheds 271 points as market wilts

Pivotals plunge on selling spree

Tracking weak Asian markets, the 30-share barometer opened 79 points down and continued to head south on emergence of heavy selling across the board. Remaining in the red throughout the day, it finally settled at 16,224.95, steeply falling by 271.10 points or 1.64 per cent over previous close. On Wednesday, the Sensex made an unexpected rally—best in the past six weeks—notching 332.61 points or 2.06 per cent.

Monetary measures

Marketmen and analysts said coupled with weak global sentiment, the market is worried that the rising inflation may force RBI to unleash more monetary tightening measures. As a result, the highly interest-rate sensitive realty counter was the worst hit with a 3.89 per cent fall. The second biggest loser was metals counter which fell 3.36 per cent. The metal index rallied the most yesterday. The IT and auto stocks too bore the brunt of heavy profit-booking.

Marketmen said, had it not been for the oil counter, which rose dramatically today following the Parikh panel report calling for freeing fuel prices, the market would have crashed badly. Even then, the last hour profit booking had most of them shaving off the huge gains made earlier in the day.

Snaps winning streak

The broader 50-issue Nifty of the National Stock Exchange also dipped by 86.50 points or 1.75 per cent to 4,845.35 from its last close.

The Nifty after gaining 102 points yesterday had a gap-down opening of 28.60 points in line with the weak international markets. Tracking the Wall Street which snapped its three-day massive winning streak, on Wednesday, on poor corporate results, Asian markets were bleeding from the start, on Thursday, and continued to remain in the red after Australian retail sales unexpectedly fell in December and commodity prices declined.

Among the BSE sectoral indices, the realty tumbled by 137.63 points or 3.89 per cent, the metal by 557.34 points or 3.36 per cent, the auto by 150.12 points or 2.12 per cent and the IT by 105.35 points or 2.10 per cent.

The market breadth turned negative with as many as 2,002 counters closing  with heavy to marginal losses against 836 that ending with gains on the BSE. Total trading volume declined further to Rs 4,463.32 from Rs 4,770.89 crore on Wednesday.

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