Monday, June 8, 2009

Sensex sees the third-biggest fall of the yearse

The Bombay Stock Exchange benchmark Sensex on Monday suffered the third-biggest fall of the year and ended below the 15,000 level by losing nearly 438 points on weak Asian and European trends, as investors booked profits on an 88 per cent rally since early March.

The Sensex, after completing 13 successive weeks of gains, suffered a loss of 437.63 points to 14,665.92 as metal, banking and realty stocks suffered hefty losses. The fall was the third-highest after those of January 7 and March 30.

The Sensex opened 50 points higher at 15,153. A freak trade in Reliance [Get Quote] saw the index touch a low of 14,761. The index soon touched a high of 15,201, before slipping back into the negative zone.

The index, thereafter, tried to recover but failed. Aggressive profit-taking in realty and metal stocks dragged the index further into red in the latter half of the day. IT stocks, however, bucked the trend.

The index touched a low of 14,604 - down 597 points from the day's high - in the last few trades of the day. The Sensex finally ended with a significant loss of 437 points at 14,666.

The BSE Realty index slumped 10.5% to 3,605. The Metal index dropped 6.5% to 10,933, and the Bankex was down 4.4% at 7,842. On the other hand, The BSE IT index was up 1.5% at 3,204.

In a similar fashion, the 50-share National Stock Exchange index Nifty dropped by 157.00 points to 4,429.90, breaking a psychological 4,600 level.

Only information technology stocks were in positive territory following a firming dollar, raising hopes of better revenue. Over 50 per cent of the country's software export revenue comes from the United States markets.

The market breadth was negative, out of 2,862 shares traded,2,246 declined and only 582 advanced on Monday.

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