Nifty closes below 5,000; realty dips 4 per cent, sugar stocks crash
19 Nov 2009
The Nifty closed below the psychological 5,000 mark. The benchmark indices opened flat and tumbled in the second half of trade. The sell-off was seen across all the sectors; realty, oil & gas, technology, telecom and metal were the major losers in today's trade.
About 0.5% fall in European markets and the US index futures also weighed on the markets. Asian markets ended mixed; Shanghai, Straits Times and Kospi gained 0.5-1% while Hang Seng and Nikkei fell 0.9-1.3%. Taiwan Weighted was flat.
The 30-share BSE Sensex closed at 16,785.65, down 213.13 points or 1.25% and the 50-share NSE Nifty declined 65.70 points or 1.3%, to settle at 4989.00. Only five out of Nifty 50 stocks ended in the green. The broader indices also slipped in line with the benchmark indices, fell 1-1.7%.
Ambareesh Baliga of Karvy Stock Broking said there was some more downside. "Because once it has broken that 5,000 level the next level is closer to around 4920 or so. We should see a correction to those levels and post that we need to see whether the weakness persists. In case it does then the next level would be 4700."
Sugar stocks were the major losers. Cane crushing could not start as farmers stopped supplies in anticipation of higher price. There were reports that sugar mill owners have agreed to pay Rs 180 per quintal for sugarcane. The farmers were demanding Rs 200 plus for the same. Parliament was adjourned on the first day of winter session on the back of protest by opposition parties for sugar cane-price.
Major players like Bajaj Hindusthan, Balrampur Chini, Triveni Engg and Shree Renuka fell 4-7%. Among the others, Andhra Sugar, Dhampur Sugar, Dharani Sugars, Dwarikesh Sugar, EID Parry, KCP Sugar, Mawana Sugars, Oudh Sugar Mill, Ponni Sugars (E), Simbhaoli Sugar and Upper Ganges Sugar lost 2-5%.
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