Markets end weak amid volatility; Reliance pack declines

13 January 2009

The benchmark indices closed the session mildly on the lower side amid extreme volatility. The Sensex broke the 9,000 mark during the day. Shares of oil exploration, telecom, private banking, select power and auto stocks remained under pressure. However, technology, capital goods, metal, OMCs stocks as well as SBI, Ambuja Cements, ACC supported the markets.

The markets shut shop on a weak note for the fourth day in a row today. A fall in the European markets was another reason that kept the Indian markets slightly on the negative side during the second half.

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The whole Reliance pack - out of which six stocks are listed on the Nifty - took a huge beating on the bourses. Anil Dhirubhai Ambani Group stocks like Reliance Infrastructure tumbled 0.89%, and Reliance Capital down 6.74%, Reliance Communication down 6.74%, RNRL fell 7.94% and Reliance Power lost 5%. Reliance Petroleum, Reliance Industries and Reliance Industrial Infrastructure from the Mukesh Ambani group tumbled 2.49%, 1.85% and 1.34% respectively.

The Sensex touched an intrday low of 8,992.92 before closing the day at 9,071.36 down 38.69 points or 0.42% from the previous close. The 50-share NSE Nifty ended with a loss of 28.15 points or 1.02% at 2744.95 after hitting a low of 2720.80.

Another big event of the day was the Q3FY09 results of IT bellwether Infosys Technologies. It reported better-than-expected numbers - its net profit went up by 14.6% at Rs 1,641 crore and revenues up by 6.8% to Rs 5,786 crore. However, the company lowered its guidance for the fourth quarter as well as full year FY09. The stock jumped 6.36%.