Markets end sharply lower on weak global cues; Metal dips 5.5 per cent

10 September 2008

Markets have plunged further in last couple of hours and have ended sharply lower on the back of profit booking and weak global cues. Major culprits for this fall were metal, oil, telecom, power and private banks shares. Midcap and Small cap stocks were also under pressure. Our markets have taken a cue from weak global markets.

Benchmark indices had opened lower following negative cues from US markets, wherein financial stocks tumbled as Lehman Brothers failed to raise capital. Markets tried to recover in middle of session did not succeed and slipped further after 1:30 pm due to weakness in European shares.

The Sensex lost 238.15 points or 1.6%, to settle at 14,662.61 and Nifty closed with a loss of 68.45 points or 1.53% at 4400.25. BSE Midcap Index fell 1.2% or 69.27, to end at 5,708.93 and Small Cap Index lost 61.19 points or 0.88% to 6,903.42.

Metal stocks have lost shine in today's session, which led major sell off. Index crashed 647.18 points or 5.48% to 11,154. Foreign financial firms have cut price and EPS target for Sterlite Industries after the scheme of arrangement. The stock plunged nearly 12% to Rs 508. Another stock, Madras Aluminium fell about 6% to Rs 201.50.

BSE Oil & Gas Index slipped 215.78 points or 2.18% to 9,667.38.

Power Index lost 45 points or 1.67% to 2,655.24.