Sensex tumbles on margins rap

STOCK REPORT

The much awaited correction came home as the Sensex took a plunge on Monday. The selling pressure on the counters was rampant all through the day, as the profit booking spree which started off towards the end of last week reached a high.

The brokers attributed the fall to the value at risk (VaR) margins slapped by BSE, apart from the huge correction pressure that was prevailing. The weakness in the US market ahead of Tuesday's Federal Reserve meeting was felt on the Indian ADRs as well.

The Sensex went down 147.83 points to close the day at 7606.17. The Nifty shed 36.80 points to end the day at 2324.40. At the BSE, the market breadth was negative with 1,544 stocks declining as against 1,013 scrips that advancing.

The FIIs were once again very modest in their investments in the Indian equity market. The FIIs were net buyers of Indian shares worth Rs 807.20 crore on Friday, while domestic mutual funds were net buyers of Rs 68.53 crore. The cash market turnover of both BSE and NSE, amounted to Rs 3,378 crore and Rs 6,872.25, respectively.

In the 30 stock sensitive index, 28 scrips ended the day in red. The only gainers were the NTPC, up 0.26 per cent to Rs 96.70 and ONGC, up 0.14 per cent to Rs 952.05. Tata Motors which registered dismal sales figures in July was the biggest loser, down 4.91 per cent to Rs 478.20. ICICI Bank went down 4.33 per cent to Rs 478.45.

Other major losers in the index were Gujarat Ambuja Cement (3.45 per cent), Dr Reddy's Labs (3.3 per cent), Bajaj Auto (3.26 per cent), SBI (3.24 per cent), Ranbaxy Labs (3.14 per cent) and Bhel (3.07 per cent).

Among the indices in the BSE were uniformly in red. The BSE Bank index was the biggest loser, down 3.33 per cent and the BSE Consumer Durables Index down 3.19 per cent followed.

The other major losers among the indices were the BSE Auto (2.44 per cent) and the BSE Capital Goods index (2.06 per cent).

In the banking sector, the Union Bank was the worst hit on Monday. The scrip was down 5.91 per cent to Rs 127.30. Other losers in this sector were Syndicate Bank (5.08 per cent) and Andhra Bank (4.80 per cent), Punjab National Bank (4.76 per cent) and IndusInd Bank (4.75 per cent).

The only major gainers in the index, were South Indian Bank, up 8.62 per cent to Rs 68.65, Kotak Mahindra Bank, up 3.83 per cent to Rs 499 and the ING Vysya Bank up 2.82 per cent to Rs 153.

The Auto index was action packed on Monday. Escorts, which fell 7.33 per cent to Rs 102.45, was the biggest loser. Other major losers were Tata Motors (4.91 per cent), Bajaj Auto (3.26 per cent), Ashok Leyland (3.23 per cent) and HMT (3.22 per cent). Only three scrips drove up in this sector, Hind Motors (5.87 per cent), Kinetic Motors (3.52 per cent) and Premier Ltd (3.42 per cent).