| Saturday, 11 October , 2008, 12:49 |
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 The Sensex suffered its biggest weekly fall in nearly two decades as deepening credit crisis forced investors to abandon stocks last week (October 6 - 10, 2008). Central banks across the globe tried their best to infuse liquidity but sentiment and near term outlook were so weak that stock prices kept tumbling down almost without a break during the week. In a move to inject some life into the markets, the Reserve Bank of India cut CRR by 150 points to 7.5%. The market regulator affirmed that there were no problems with regard to pay-in and pay-out of securities and funds. The Finance Minister, for his part, said a few words about the strength of the economy. But all these were shrugged off. Inflation rate dropped down to 11.8% but investors got a shocking data in the form of weak industrial production numbers. India's industrial output grew by a meagre 1.3% in the month of August 2008, far lower than the output figures of July 2008 and August 2007. While the Sensex tanked 1,998.47 points or 15.95% to 10,527.85, the Nifty ended the week with a loss of 538.35 points or 14.09% at 3279.95. The Sensex sank to a low of 10,239.76 in early trade on Friday. The Nifty midcap and smallcap stocks were battered mercilessly. Mirroring the sell-off, the midcap and smallcap indices tumbled by 21.42% and 20.31% respectively. As was the case in many weeks in recent months, it was a disastrous start for the market on Monday. As global markets went into a tailspin on fears of more collapses in the financial sector, the Sensex plunged nearly 725 points or 5.78% that day. The Nifty suffered a huge loss of 216 points. There was a relief of sorts for stocks on Tuesday. But then not much buying happened even at lower levels, as the mood was quite cautious. Amid highly listless trades, the Sensex dropped down by over 100 points in that session. The Nifty managed to romp home with a marginal gain. Tips to book profits in stock markets! Click here After some heavy losses, a few blue chip stocks bounced back to higher levels on short-covering on Wednesday. Domestic funds were also seen picking up some stakes in several front line stocks. Despite this, the Sensex and Nifty ended lower that day, losing 367 points and 73 points respectively. And then, after a day's breather - the market remained closed on Thursday on account of Dusserah - the bears swung back into action once again. The market sentiment was so badly hit before trade commenced on Friday that the Sensex crashed by over 1,000 points or 9.5% barely a couple of minutes past the opening bell. Fears of a global recession sent stock prices crashing down on US, Asian and European bourses on Friday. The Sensex was in danger of hitting the 10% lower circuit on at least two occasions that day. Despite some late recovery the BSE barometer ended the session with a stunning loss of 800.51 points or 7.07% at 10,527.85. The Nifty recorded a loss of 233.70 points or 6.65% as it settled at 3279.95. Ranbaxy Laboratories was the lone gainer from the Sensex last week. The stock ended the week with a sharp gain of 10.8% following the US Department of Justice deciding to withdraw a motion against the company. From the Nifty index, Nalco (up 5.6%) was the one to end on a firm note besides Ranbaxy Laboratories. Jaiprakash Associates (down 34.4% to Rs 73.15) was the biggest loser in the Sensex. Sterlite Industries tumbled by over 30% to Rs 274.25. Reliance Infrastructure also lost over 30% at Rs 515.30. Reliance Communications ended with a loss of 28.8% at Rs 237.40. Notwithstanding several statements from senior bank officials, finance ministry spokesperson and the Reserve Bank of India about the bank's financial strength, the ICICI Bank stock had another disastrous week. The stock, which was down by around 25% at one point on Friday, ended the week with a hefty loss of 27.8%. Tata Steel (down 27%), Larsen & Toubro (down 23.2%), Wipro (down 22.7%), Tata Consultancy Services (down 20.4%), Satyam Computer Services (down 20.3%), HDFC Bank (down 17.8%), Hindalco (down 17.5%), HDFC (down 17.4%), DLF (down 16.3%), Grasim Industries (down 16%) and BHEL (down 14.1%) closed with big losses. Infosys Technologies eased by 11.8% to Rs 1226.70. In early trade on Friday, the stock plunged to a low of Rs 1040 after the company revised downwards its dollar revenue guidance for the year ending March 2009 to reflect the current economic situation and the drastic depreciation of major global currencies against the US dollar. ITC, ACC, Hindustan Unilever, Reliance Industries and Tata Power lost 12.75% - 14%. Tata Motors ended with a loss of 11.9%. The company will now manufacture its dream Nano car at Gujarat. ONGC lost over 10%. Mahindra & Mahindra ended with a loss of 8.9%. State Bank of India, which stood tall amidst ruins on Friday, ended the week with a loss of 8.7%. Bharti Airtel (down 8.6%) and NTPC (down 3.7%) also ended week. Maruti Suzuki closed with a marginal loss. Nifty stock Suzlon Energy went tumbling down by 36.7% to Rs 93.20. Unitech lost 26.9%. Siemens lost over 25%. Cairn India ended lower by 23.3%. ABB, HCL Technologies, Ambuja Cements, Reliance Power, Zee Entertainment, Reliance Petroleum, Cipla, Sun Pharmaceuticals, Idea Cellular, GAIL India, BPCL, Hero Honda, Tata Communications, Punjab National Bank and SAIL also closed with sharp losses. India Bulls Securities, Bajaj Financial Services, Welspun Gujarat, HDIL, Renuka Sugars, Rolta India, India Infoline, Chambal Fertilizers & Chemicals, ND TV, Videocon Industries, Hindustan Construction Company, Jain Irrigation, Balrampur Chini, GSFC, Gujarat Narmada, Opto Circuit, Alstom Projects, IDFC, BGR Energy, Mastek, United Phosphorus and Gujarat Minerals suffered heavy losses last week. Among the sectoral indices, BSE CG, CD, Realty and Metal ended lower by 22% - 25%. The IT, Teck, Power and Bankex fell 16% - 17.25%. The FMCG and Oil & Gas indices lost 14.65% and 13.7% respectively. The BSE HC drifted down by 12.29%, while the PSU and Auto indices closed lower by 10.3% and 10.91% respectively. |
Monday, October 13, 2008
Weekly wrap: Sensex tanks nearly 2000 pts
