Sensex plunges below 9,200

24 October 2008

The market shattered after the RBI credit pollcy announcement. The Sensex has broken 9000 mark for the first times since June 14, 2006 and the Nifty also slipped below 2700. Metal, banking, realty, power, oil and auto stocks are extremely under pressure.

The market has disappointed with no rate cut in the credit policy. Banking stocks are reeling under selling pressure. The long only funds are selling across the region. The desperate sell off has been seen from local players. Domestic funds are nibbling at the lower levels. The sentiment is extremely weak on Asia sell off.

The Reserve Bank of India has announced the credit policy. It has kept all key rates unchanged. The GDP growth forecast has lowered to 7.5-7.8 per cent as against 8 per cent earlier. Inflation target remained unchanged at 7 per cent by March end. The credit growth stood at 29 per cent currently but the RBI has kept target of 20 per cent.

At 12:24 pm, the Sensex declined 731 points to 9,032 and the Nifty slipped 242 points to 2,700. The BSE Midcap and Small Cap indices fell at around 5 per cent each.

BSE Metal, Realty, Bankex, Power, Oil & Gas, Auto and FMCG indices tumbled 7-10 per cent. Capital Goods plunged nearly 6 per cent and IT lost 4 per cent.

Among the frontliners, Hindalco, Nalco and Suzlon Energy fell 20-23 per cent. M&M, Tata Steel, Ranbaxy Labs, Tata Motors, Reliance Infrastructure, ONGC, Sterlite Industries, Reliance Communication, Zee Entertainment, Unitech, Power Grid Corp and Idea Cellular lost 11-17 per cent.