Dismal close for markets; Sensex, Nifty down 5 per cent, RIL dips 12 per cent

05 November 2008

It was a crucial day for the markets on account of heavy sell-off in heavyweights amid weak global markets. The benchmark indices broke the five-session winning streak and tumbled nearly 5%. Oil, metal, realty, capital goods and telecom were hugely beaten down. Reliance Industries, HDFC, L&T, Bharti Airtel, Reliance Communication, SAIL and Tata Steel were the main culprits for today's fall. Incremental flows were negative at the FII desk and domestic funds appeared to be looking to book profits in today's trade.

The Sensex touched an intraday low of 10,051.52 before closing the day at 10,120.01, down 511.11 points or 4.81% over the previous close. The Nifty closed below the 3,000 mark and plunged 147.15 points or 4.68% to close at 2994.95.

In the derivative segment, the Nifty Futures reversed in discount from premium and ended at a discount of 24 points. Fresh shorts build-up was seen in the Nifty Futures. Reliance Industries added aggressive short build-up. Oil and gas and metal stocks also saw fresh short build-up.

Among the frontliners, Reliance Industries, Tata Steel, Jaiprakash Associates, Reliance Communication, DLF, HDFC, GAIL, SAIL and Unitech lost between 8.5% and 14.5%.

Reliance Industries plummeted 12.76% or Rs 185.75 to end at 1,269.45 on the BSE. FIIs were sellers in the share, especially hedge funds, even as news flew in that the company had shut five polyester units in Patalganga plant and offered VRS to over 500 employees. There was also news that Reliance has also planned a 4-week shutdown of its polypropylene plant. Fall in diesel and gasoline demand in US and Europe will impact its Jamnagar refining.

The stock has touched an intraday low of Rs 1,244.10. It traded with volumes of 4,129,321 shares, which was higher by 98.68% as compared to its 5-day average of 2,078,366 shares.