Sensex plunges 165 points; IT, realty stocks take big hit
Thursday, 26 May 2011, 17:32 IST
By PTI
By PTI
MUMBAI: The BSE sensex plunged 165 points on Wednesday to 17,847, a nine-week low, on selling in capital goods, IT and realty stocks ahead of May's settlement of derivative contracts amid weak global cues.
Intra-day, it dipped to three month low of 17,786.13. Infosys, L&T, RIL, TCS, SBI, ICICI Bank and HDFC contributed more than 100 points to the decline.
Realty major DLF slumped to a 52-week low after posting over 19% dip in Q4 earnings and was the top loser from the sensex pack, losing 4.04%.
The capital goods index fell 1.53%. It was followed by IT, down 1.52%, on reports that software bellwether Infosys Tech has received a legal notice from US district court over the use of its business visas.
Globally, stocks displayed mixed trend with downward bias on fears that euro-zone debt crisis may spread further.
Stock markets resumed lower amid weak Asian trend and the 30-share Bombay Stock Exchange index, sensex, touched the lowest level since the Budget day (February 28), when it had logged an intra-trade low of 17.718.88.
It remained in the negative terrain all through and closed at 17,847.24, down 164.73 points or 0.91%.
The broad-based NSE 50 index, Nifty, also dipped 45.90 points or 0.85% to 5,348.95.
"It was a day of large-cap led selling as traders braced for Thursday's F&O expiry and earnings from a few index heavyweights like Tata Steel and Tata Motors," said IIFL Head of Research ( India Private Clients) Amar Ambani.
"Weak Asian markets weighed on the sentiment early on, and couldn't recover despite a recovery in the European indices," he added.
Intra-day, it dipped to three month low of 17,786.13. Infosys, L&T, RIL, TCS, SBI, ICICI Bank and HDFC contributed more than 100 points to the decline.
Realty major DLF slumped to a 52-week low after posting over 19% dip in Q4 earnings and was the top loser from the sensex pack, losing 4.04%.
The capital goods index fell 1.53%. It was followed by IT, down 1.52%, on reports that software bellwether Infosys Tech has received a legal notice from US district court over the use of its business visas.
Globally, stocks displayed mixed trend with downward bias on fears that euro-zone debt crisis may spread further.
Stock markets resumed lower amid weak Asian trend and the 30-share Bombay Stock Exchange index, sensex, touched the lowest level since the Budget day (February 28), when it had logged an intra-trade low of 17.718.88.
It remained in the negative terrain all through and closed at 17,847.24, down 164.73 points or 0.91%.
The broad-based NSE 50 index, Nifty, also dipped 45.90 points or 0.85% to 5,348.95.
"It was a day of large-cap led selling as traders braced for Thursday's F&O expiry and earnings from a few index heavyweights like Tata Steel and Tata Motors," said IIFL Head of Research ( India Private Clients) Amar Ambani.
"Weak Asian markets weighed on the sentiment early on, and couldn't recover despite a recovery in the European indices," he added.
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