Sensex, Nifty ends down over 3 per cent; Metal fell 6 per cent

03 October 2008

It was dreadful day for the markets. Nifty closed below it psychological 3850 mark and Sensex slipped below 12500 during the days trade. Heavy sell off seen in largecap stocks. All sectoral indices are closed negative. The BSE metal was the worst performer of the day; it lost over 7%. Massive selling was seen in oil & gas, bank, IT, realty, capital goods and power stocks. The BSE midcap and smallcap indices are down over 2% each.

The Sensex closed down 529.35 points or 4.05% at 12526.32, and the Nifty ended down 132.45 points or 3.35% at 3818.30.

Market breadth was negative, about 852 shares have advanced, 2124 shares declined, and 205 shares are unchanged.

Sandeep Bhatia of Kotak Institutional Equities feels the bailout package would not lead to a substantial rally in the market as the package does not address other fundamental problems. He said the fundamentals of India are sounder than other economies but expects the Indian markets to trend lower for the next 2-3 months. He fears the Sensex may hit sub-12000 levels if there are negative surprises and sees a 1000 point correction due to global mayhem. ''The markets will react to near term flows and trend low,''

During this week Sensex and Nifty lost 4.7% and 4.4% respectively. Index heavyweight Reliance has touched a 52 week low of Rs 1,747.25, in this week the stock has lost 11%.

Top losers on the Sensex were ICICI Bank at Rs 504.50 down 8.51%, Sterlite Ind at Rs 395.75 down 7.84% and Reliance at Rs 1,760.95 down 7.67%.