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Sensex's biggest-ever fall: 826 points
May 18, 2006 10:42 IST
Last Updated: May 18, 2006 17:39 IST
The markets closed with sharp correction taking cues from Dow, Asian and other emerging markets. The Sensex closed at 11,391 down 826 points, which is the highest ever absolute fall for the Sensex. The NSE Nifty closed with a loss of 246 points at 3,389.
According to experts, one of the reasons for such a fall is that the US CPI numbers came on Wednesday and were worse than expectations, which could further initiate a hike in Fed rates.
On the domestic front, triggering of margin calls caused spiraling, which led to across the board selling.
Although the fall has been very steep on Thursday, but the fall in the Indian market in the last one week has been lesser as compared with a fall in the other emerging markets like Brazil, Russia and Mexico.
The BSE midcap index was down 6.4% at 5,891.12 and the BSE Smallcap was down 6.44% at 7,617.20.
The overall market breadth was negative, about 262 shares have advanced, 2216 shares declined, and 29 shares are unchanged.
According to Adrian Mowat, Asian Regional Strategist at JPMorgan believes that underline fundamentals are still strong in emerging markets. He adds that India should correct by 4-5% and that markets will look attractive at 11,000 levels. He also says that all markets will focus on cues from US Fed.
All the Sensex and Nifty stocks closed in the negative terrain. All the BSE indices closed in red.
Markets on Thursday:
The NSE cash turnover was Rs 10565.45 crore. The NSE F&O turnover stood at Rs 44907.2 crore. The BSE cash turnover stood at Rs 4844.82 crore.
The metal index was down 11.4% at 9,199.51. The major losers were Sterlite Ind, Guj NRE Coke, JindalStainless, Hindalco, NALCO, and SAIL.
The consumer durables index was down 8.2% at 3,267.52. Stocks including Whirlpool, Titan Industries, Blue Star and Su-Raj Diamonds closed lower.
The auto index was down 7.24% at 5,282.71. Among the major losers were stocks like Hind Motors, Escorts, Ashok Leyland, Maruti Udyog, Tata Motors, Cummins and M&M.
The capital goods index was down 7.2% at 8,135.30. Stocks like Greaves Cotton, HEG, Siemens, Crompton Greave, Carborundum, BHEL and Aban LoydChiles were among the top losers.
The BSE oil & gas index was down 7% at 5,557.86. The major losers were MRPL, Petronet LNG, Reliance, ONGC and GAIL.
The FMCG index was down 6.4% at 2,125.74. Stocks including Shaw Wallace, Dabur India, Colgate, Tata Tea and ITC were among the major losers.
The bankex was down 6.17% at 5,243.06. Stocks including Canara Bank, Bank of India, SBI, IOB, Kotak Mahindra and Bank of Baroda closed in deep red.
The health care index was down 6% at 3,702.98 and the BSE IT index was down 5.3% at 3,860.73.
Experts say that any fall in the market will make valuations cheaper and investment buying will take place.
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