Markets decline on Black Monday anniversary

17 May 2005

Indices opened on a positive note after yesterday's strong rally in the US and stable crude prices. The positive sentiment soon subsided and the indices declined fast.

From mid-morning to early afternoon, the markets were stuck in a range as IT stock held the markets from further decline.

IT stocks gave in soon after and the indices declined further to close around the lows of the day.

Sensex closed at 6466, down 62 points and the Nifty at 1991, down 22 points. Nifty May futures discount to the spot index widened to 24 points from yesterday's 11 points.

Among Nifty stocks, Oriental Bank of Commerce, Dr Reddy's and Shipping Corporation were the major percentage gainers while SAIL, Glaxo and Reliance were the major losers.

On Monday, US markets rallied as old economy stock joined the technology party. The Dow gained over a per cent as financial sector stocks found favour among investors. Technology stocks held firm after Friday's strong showing and helped the NASDAQ to close nearly a per cent higher. The only sector which remained lacklustre was oil which remained weak on lower oil prices.