Sensex ends up 110 pts as CIL outpaces RIL; midcaps plunge
17 Aug 2011
A mere 110-point gain is all that Sensex, the BSE benchmark, could record before closing the volatile trading session on Wednesday. Midcap and smallcap indices closed in deep red as investors narrowed down exposure to these stocks.
Amid extremely volatile session and battered broader markets, the market witnessed a change of guard - the erstwhile most valued stock (by marketcap) Reliance Industries was replaced by the world's largest miner Coal India. The stock was added in Sensex on August 8.
CIL closed up 2.6% at Rs 398 with market cap of Rs 2.51 lakh crore while RIL ended down 0.55% at Rs 754.8 with market cap of Rs 2.47 lakh crore.
The 30-share BSE Sensex saw about 300 points swing during the day before closing up 110 points at 16,841. The 50-share NSE Nifty touched 5,100 in the morning trade but could not hold the same as investors relied on "sell on rally' strategy. It moved up 21 points, to end at 5,057.
Ashith Kampani of JM Financial said the market would remain volatile and go downwads. He said, however, if in the Euro region, where they are trying to mitigate their problems, arrives at a solution, then the markets may stabilize and bounce back.
The sell-off continued in the broader markets for the second consecutive session. Rada Advisors' Nitin Raheja indicated that there could be a bit of capitulation taking place in the midcaps, which is normally seen towards the second part of such phases.