Markets end 4 per cent down on weak global cues; realty dips 10 per cent

02 February 2009

The benchmark indices have closed the first session of the week sharply lower on account of weak global cues as well as disappointing earnings. Real estate stocks took a huge beating followed by metal, banking, power, telecom, oil & gas and technology stocks. Midcap and smallcap stocks also followed the same trend in the second half of session.

Heavyweights like NTPC, Reliance Industries, SBI, ICICI Bank, Bharti Airtel, HDFC, ONGC, SAIL, Reliance Communication and L&T saw a big sell-off.

Global cues were the main reason behind the slump. At the time of closing, European markets were trading sharply lower - the FTSE was down 100 points at 4,048, CAC fell 92 points to 2,882 while the DAX was down 120 points to 4,219. US futures crumbled as well: the Dow Jones Futures was down 137 points at 7,818 and the Nasdaq Futures lost 21.5 points to 1,157.75.

Asian markets ended mixed. Hang Seng fell 3.14% and Straits Times lost 2.36%. Kospi and Nikkei lost 1.3-1.5%. However, Shanghai and Taiwan were down 1.06% and 0.28%, respectively (both markets opened after a week holiday).

The 50-share NSE Nifty closed below 2800 mark, down 3.76% or 108.15 points at 2766.65 and the 30-share BSE Sensex shut shop at 9,066.70, down 357.54 points or 3.795 from previous close. Only 4 stocks out of 50 in the Nifty managed to close higher.

Earnings of real estate, especially DLF and Unitech, have disappointed the street on Saturday, which impact has seen on the Realty Index in today's trade. It tumbled 10.32% or 172.11 points, to close at 1,495.97. DLF lost 13.54% and Unitech was down 9.02%. HDIL and Indiabulls Real Estate were down over 12%.