Reliance loses 12.76 per cent.
Stocks dropped for the first time in six days, led by Reliance Industries and Tata Steel and on speculation recent gains were overdone.
Reliance dropped 12.76 per cent on concern that a drop in oil-processing margins will hurt profit. Tata Steel slumped 10 per cent after ArcelorMittal, the world’s biggest steelmaker, said it will slash production as prices tumbled.
The benchmark Bombay Stock Exchange Sensitive Index, or Sensex, lost 511.11, or 4.8 per cent, to 10,120.01. The index jumped 25 per cent in the previous five trading sessions amid global efforts to ease the fallout from credit market turmoil.
The S&P CNX Nifty Index on the National Stock Exchange fell 147.15, or 4.7 per cent, to 2,994.95. The BSE 200 Index slid 4 per cent to 1,196.66. Nifty futures for November delivery declined 6 per cent to 2,971.
US futures and European stocks also eased on Wednesday after six straight days of global equity gains as focus yet again shifted to economic problems after senator Barack Obama was elected as the 44th American President. European markets, which opened after the Indian market, fell and key benchmark indices in France, Europe and UK were down 1.44 to 1.88 per cent.
Trading in US futures suggested the Dow would fall 82 points at the opening bell, as the focus shifted to the weak economy after Obama’s decisive win in the US presidential election.
In the domestic market, domestic institutional investors on Wednesday sold stocks worth Rs 168.75 crore while foreign institutional investors (FIIs) were net buyers to the tune of Rs 216.43 crore. In the past three trading sessions, DIIs have sold stocks worth Rs 379 crore while FIIs have made net purchases of nearly Rs 500 crore.
Market players say mutual funds are selling to overcome redemption pressure. However, sources say most of the mutual funds are facing redemptions on the debt side and not so much on equity side.
Telecom stocks also fell on concerns that the government move to charge more for radio spectrum may hurt earnings. Sector leaders Bharti Airtel and Reliance Communication fell between 4 and 9 per cent.
| HEADING SOUTH | ||
| BSE OIL & GAS | ||
| Top losers | 5-Nov | % chg* |
| GAIL | 200.55 | -15.34 |
| RIL | 1,269.45 | -12.76 |
| Essar Oil | 83.2 | -11.3 |
| RPL | 84.8 | -9.98 |
| RNRL | 50.5 | -9.25 |
| BSE METAL | ||
| Top losers | 5-Nov | % chg* |
| SAIL | 85.8 | -12.76 |
| Welspun Guj | 124.75 | -10.53 |
| Tata Steel | 215.75 | -10.05 |
| Jindal Steel | 763.45 | -8.45 |
| Sterlite Ind | 268.25 | -7.2 |
| BSE REALTY | ||
| Top losers | 5-Nov | % chg* |
| HDIL | 122.75 | -15.16 |
| Unitech | 49.7 | -11.41 |
| Ansal Prop | 47.3 | -10.84 |
| Orbit Corp | 70 | -9.39 |
| DLF | 264.64 | -8.79 |
| * over previous close | ||
Hindalco Industries dropped 4.2 per cent to Rs 61.35, snapping a five-day 59 percent advance. Jaiprakash Associates dropped 10 per cent to Rs 80.35, snapping a 68 per cent five-day winning run.
