Sensex ends below 9,000 on CLSA downgrade, -ve global cues

20 February 2009

The benchmark indices have witnessed sell-off throughout the session on the back of dismal global cues and ended the last day of week sharply lower. The indices shut shop in negative terrain for the entire week as well. Banking, technology, metal, telecom, oil & gas and capital goods remained under pressure. Banking stocks, especially, were under pressure at the FII desk.

A cut in EPS estimates of largecaps by CLSA added some more pressure on the markets, later in the day. It cut Tata Steel's FY10 EPS estimates by 40% to Rs 16.90 while it sees Hindalco's FY09 EPS plunging to -10.60. The firm has also cut Reliance's FY09 EPS estimates and FY10 estimate for ICICI Bank and SBI by 6%, 8.2% and 5.2% respectively. It sees Punj Lloyd's FY09 EPS estimate falling by 18%.

The Hong Kong-headquartered brokerage firm said it sees 2009 end target for Sensex at 11,000. It also cut the Sensex's FY09 EPS estimate by 5% and that of FY10 by 7%.

The 30-share BSE Sensex slipped below the 9,000 mark and touched an intraday low of 8,762.58 before shutting shop at 8,843.21 - down 199.42 points or 2.21%.

The Nifty touched a low of 2709.30 during the day and remained nine points away from breaking the 2,700 mark. It closed at 2736.45 - down 1.90% or 52.90 points. All sectoral indices ended in red.

Heavyweights like Reliance Industries, ICICI Bank, Infosys, TCS, ONGC, Reliance Communication, HDFC, NTPC, L&T, Bharti, SAIL, BHEL and SBI were draggers in today's trade. However, ABB and ACC managed to end in green.