rediff.com

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News 
Rediff.com  » Business » Markets end in red while IT shares recover

Markets end in red while IT shares recover

Last updated on: September 26, 2011 17:48 IST

BSE Sensex crashes below 16,000 points

     Next

Next

The markets ended with losses after recovering from the day's low in afternoon trades. A recovery in European markets and buying in IT stocks helped the Sensex to recover around 250 points from the day's low of 15,801.

The index finally ended with a loss of 111 points to 16,051. Nifty ended down 32 points at 4,835.

Global markets were in the red as doubts resurfaced whether Europe's politicians can deliver a rescue programme big and bold enough to stop its sovereign debt crisis from morphing into a major financial disaster.

Asian markets ended in red with Nikkei shedding 2% to end at a 30-month closing low of 8,374. Seoul Composite and Taiwan Weighted also slipped 2.5% each. European markets, however, traded in green.

The CAC and DAX jumped 2% each to 2,048 and 2.896, respectively. FTSE is up 0.6% at 5,097.

Click NEXT to read more...


Image: BSE building.

     Next

Sensex crashes below 16,000 points

Prev     Next
Prev

Next

Among other news, market regulator, Sebi notified the new takeover code which makes it mandatory for entities buying more than 25% stake in a listed firm to buy an additional 26% from the public.

Moreover, Crisil reasearch has said in a research note that it expects corporate India to report a significant moderation in revenue growth and lower EBITDA margins for the second quarter of financial year 2011-12.

According to the research agency, this would be due to decline in consumer confidence, stubbornly high inflation, rising interest rates and slowdown in investment growth.

 Reliance was the biggest dragger among Sensex stocks and along with HDFC Bank and Larsen & Toubro, contributed for a 60 points fall in the Sensex.

Click NEXT to read more


Image: Disastrous four days of selling.

Prev     Next

Sensex crashes below 16,000 points

Prev     Next
Prev

Next

On the Sensex, 

Metal stocks dropped, mirroring a 3.2% drop in the London Metal Exchange on Friday. The BSE metal index dropped 3.2% to 11,141.

Hindalco and Sterlite from the metal space touched their respective 52 week lows. Hindustan Zinc, Coal India, Sesa Goa and NMDC tumbled 3-6% each.

"Metals are continously making lower top and bottom formation, particular Hindalco, Sesa Goa and Sterlite looking still weak, and Auto and Banking showing some signs of resilience," said Navneet Daga, Derivative Analyst, KR Choksey Securities.

IT stocks erased losses and ended up 0.5% at 5,011. Meanwhile, the rupee continued to weaken against the dollar. Heavyweights Infosys, TCS and Wipro edged up 0.6% each.

Click NEXT to read more


Image: A stock broker reacts while trading at a brokerage firm in Mumbai.
Photographs: Arko Datta/Reuters.
Prev     Next

Sensex crashes below 16,000 points

Prev     More
Prev

More

Meanwhile, some buying action was witnessed in ICICI Bank and Bharti Airtel. The stocks moved up 1.4% each in trades. Other gainers were Jaiprakash Associates, DLF, Cipla and Tata Steel.

The market may remain volatile this week as traders roll over positions in the futures & options segment on Thursday.

Markets would be looking at the Q2 corporate numbers for direction. IT heavyweight, Infosys, is set to announce their quarterly numbers on October 12, 2011.

BSE market breadth was negative. Out of 2,861 stocks traded, 1,963 declined while 788 advanced.

 


Image: People look at a large screen displaying Sensex.
Photographs: Arko Datta/Reuters.
Prev     More
Source: