A day after monetary policy review, index sees third biggest fall of 615 pts on US tremors. | |
| The Sensex witnessed its third biggest fall of 615 points on Wednesday, caught in a global selloff as worries over the US subprime mortgage market intensified, although analysts said local fundamentals remained solid. |
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Stocks also fell after crude oil topped $78 a barrel yesterday in New York, closing at a record high. The Sensex dropped 615.22 points, or 4 per cent, to 14,935.77 points, its biggest slide since April 2. All 30 stocks in the index declined.
| BIGGEST FALL IN SENSEX | | Date | Change | % Chg | | 18-May-06 | -826.38 | -6.76 | | 02-Apr-07 | -616.73 | -4.72 | | 01-Aug-07 | -615.22 | -3.96 | | 17-May-04 | -564.71 | -11.14 | | 27-Jul-07 | -541.74 | -3.43 |
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The Nifty lost 183 points, or 4 per cent, to 4,345.85. Nifty futures for August delivery slid 4.6 per cent to 4,301.05 points.
| TOP 5 SENSEX LOSERS | | | Aug-01 | % Chg* | | ACC | 965.90 | -8.87 | | REL | 737.30 | -7.08 | | Hindalco | 159.15 | -6.44 | | Ranbaxy | 367.80 | -5.67 | | RCom | 530.60 | -5.05 | | * Over previous day |
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| Sensex heavyweight Reliance Industries fell nearly 5 per cent to its lowest in more than two weeks. |
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| Foreign investors sold a net $336.6 million in equities on July 27 and July 30, according to the latest figures. They had been net buyers on every day in July, except three. |
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| With Wednesday's fall, investors have lost Rs 2,48,567 crore in the last four trading sessions. On Wednesday alone, the total market capitalisation came down by Rs 1,84,533 crore to Rs 43,48,507 crore. |
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| Analysts attributed the fall to global cues though some said stocks, which were trading at over-stretched valuations, had shown a bigger fall. |
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| "The all-time high crude oil price and the turbulence in global hedge funds have affected sentiments. The market will continue to remain volatile till global markets stabilise," said Jigar Shah of KRC Shares and Securities. |
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| Asian stock markets were rattled "" many fell more than 3 per cent "" after Australia's Macquarie Bank said retail investors faced losses in two of its high-yielding bond funds. That added to existing concerns after Bear Stearns had halted redemptions in a third hedge fund. |
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| There were also reports that the strengthening Japanese yen meant yen carry trade was not expanding. Those who borrowed in cheaper yen and bought US dollar assets are now selling to repay yen liabilities. |
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| Technical analysis suggests that the market will fall further. "The Sensex has reached near its support level of 14,900 points. The next support level is 14,700. It may break that and go to 14,500. Resistance is seen at 15,100 points. The Nifty's next resistance level is 4,400 points and it will find support at 4,300 points," said Sandeep Wagle, chief technical officer of Angel Broking. |
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| Meanwhile, US stocks advanced as gains in pending home sales and manufacturing helped assuage concern that the housing slump will spur a recession. The Dow Jones Industrial Average added 77.87, or 0.6 per cent, to 13,289.86 points at 12:20, New York time. |
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