Markets plunge ahead of inflation nos; Oil, CG, bank stocks dip

28 August 2008

Markets saw sharp correction in last half an hour of trade and ended with huge gap down led by sell off in oil, realty, capital goods, banking, metal, technology and select power stocks. Inflation concerns kept markets nervous in second half of session. CNBC-TV18 poll suggests that Inflation is likely to be around 12.79% for the week ended August 16 as against 12.63% in previous week but majority of experts believe that it may cross 13% mark.

Frontline indices had opened flat and traded marginally weak with choppiness on the back of F&O expiry but inflation concerns started dragging markets lower in second half of session. Even in last half an hour of trade, Sensex and Nifty have moved just near to their pshychological levels of 14000 and 4200, respectively but indices did not break those levels.

The Nifty closed at 4214, down 78.1 points or 1.82% after hitting an intraday low of 4201.85. Sensex ended with a loss of 248.45 points or 1.74% at 14,048.34. It has touched a low of 14,002.43.

Biggest contributors in the fall of indices were Reliance Industries, Reliance Communication, BHEL, TCS, L&T, ICICI Bank, Wipro, Reliance Petroleum, ONGC and DLF.

In the August series of F&O, Nifty lost 2.7% and Sensex fell 2.1%. Top gainers were ABB, HDFC Bank and Maruti Suzuki, which went up by 11.5%, 11% and 9.5%, respectively. Amongst losers, Reliance Communication tumbled 23%, Hindalco -15% and Tata Communication -13%.

Rate sensitives, infrastructure, oil and metal stocks have witnessed huge selling pressure. Amongst frontliners, NALCO crashed by 5.79%, BPCL -4.76%, Hindalco -4.57%, Tata Comm -4.51%, Dr Reddys Labs -3.87%, Reliance Industries -3.45%, Reliance Infra -3.15%, BHEL -3.12% and TCS -3.05%.